In January, the who’s who of the Consumer Electronics Industry gathered in Las Vegas for the 2014 Consumer Electronics Show (CES) to debut and discuss new technologies and trends in the market.
Tech enthusiasts swarmed the CES learn about new products like Samsung’s 105-inch curved 4K TV, the newest in Ultra HD Smart TVs, and the latest and greatest in wearable technologies like the Razer Nabu, LG Lifeband Touch and Sony Core.
Demand for the latest and greatest tech has led to consumer electronics becoming one of the fastest growing industries in the world in terms of innovation. While this is a positive thing for the everyday end-user, it doesn’t necessarily have the same effect on the Consumer Electronics Market, which is one reason why the market is only expected to experience mild growth at a CAGR of 5.59 percent from 2013-2018.
The technology involved in the development of consumer electronics is rapidly evolving, which demands the launch of more innovative and creative products in the market. This also results in shorter product lifecycles.
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| Product Life Cycle Analysis of Consumer Electronics |
Increased spending on R&D can also increase competition and risk for market vendors as their competitors might introduce products with break-through technology in the market. Any delay in the design, development process, or testing phase of these consumer electronics products will reduce the market’s revenue.
Some of the factors responsible for this delay are complex design requirements and the lack of technical expertise. These hindrances can ultimately reduce the market acceptance value of consumer electronics products and affect its credibility.
Fortunately, there is light on the horizon for the Consumer Electronics Market. One of the most impactful trends occurring in the market is the development of Ultra HD technology. Samsung’s Ultra HD 4K TV was just one of many new Ultra HD products showcased at the CES. Ultra HD technologies offer aspects such as higher resolution than HDTV, higher frame rate, and higher color space. With the rapid digitization of the TV industry and the fall in TV prices, consumers are demanding more innovative TVs that support high-quality content.
In addition to Ultra HD technology developments, consumer electronics manufacturers are expanding into different industries. One industry in particular is the Automotive Industry.
The In-Car Entertainment Equipment segment is one of the major segments in the Global Consumer Electronics market. The sale of car audio and video equipment is directly proportional to automotive production, and the increasing demand for vehicles, especially light vehicles, is driving the demand for car audio and video equipment. Vendors selling audio and video equipment to automotive makers have witnessed steady growth because of the increasing demand for in-car entertainment by consumers.
In terms of units produced, the Global Light Vehicle Market is growing at a CAGR of 4.56 percent from 2013-2018. The high demand for light vehicles that offer improved performance and driving experience is encouraging passenger vehicle manufacturers to enhance the overall driving experience by providing consumers with enhanced in-car entertainment equipment.
