The global consumer electronics market is set to reach $977 billion in 2025, according to Stocklytics.com, marking a significant downward revision from previous projections. The industry, which saw record sales during the pandemic, has struggled in recent years due to inflation, economic uncertainty, and shifting consumer spending habits.

Declining Growth Rates

While 2025 is expected to bring some recovery, the annual growth rate for the industry is forecasted to slow to 2.9%, lower than prior expectations. The latest Statista Market Insights survey further reduced revenue forecasts, cutting the 2025 estimate by $100 billion from earlier projections.

• 2024 sales are expected to drop by $6 billion (0.6%) after a 4.3% decline in 2022.
• The market size for 2028 is now estimated at $1.06 trillion, down $112 billion from previous forecasts.

Key Growth Drivers: Smartphones and Gaming

Despite weaker growth, certain segments are expected to drive revenue recovery:

• Smartphone sales will rise 3.6% YoY, reaching $504 billion in 2025.
• Gaming equipment revenue is projected to increase 3.6%, reaching $35.3 billion.
• Streaming devices (Smart TV boxes, sticks, and video players) will see the highest growth at 7.8%, surpassing $13 billion in 2025.

Other segments, such as computing, drones, TVs, and multimedia, are expected to grow at much slower rates, between 1.8% and 2.4% YoY.

Consumer Spending Shifts

Global consumers continue to adjust their budgets, prioritizing essential needs over discretionary electronics. With inflationary pressures and economic uncertainty still lingering, the long-term outlook for the consumer electronics industry remains subdued compared to past expectations.

As the industry moves forward, manufacturers and retailers will need to adapt to changing consumer demands, focusing on innovation, affordability, and premium experiences to sustain growth in a more competitive landscape.