European Consumer Electronics Sector to Suffer $14.2bn Revenue Loss
The Covid-19 pandemic has caused a significant shift in consumer spending, directly impacting Europe's consumer electronics industry.
In times of economic uncertainty, consumers are choosing to buy essential items such as groceries and household items, rather than big-ticket purchases such as televisions and smartphones.
According to figures presented by finaria.it, Europe's consumer electronics market revenue is expected to reach $213.8bn in 2020 - a drop of $14.2bn in the wake of the pandemic.
European PC and smartphone sales to witness greatest revenue drop in 2020
In recent years, the European consumer electronics segment has seen steady growth, with revenue increasing from $208bn in 2012 to $227.9bn in 2019.
However, sales of consumer electronics goods slumped during the first half of 2020, as shops and showrooms of leading brands closed their doors during lockdowns and Europeans prioritised their spending.
Despite global growth in demand for laptops and computers owing to remote working and distance learning, the European computing market is projected to see a 6.3% year-on-year fall in revenue, reaching $55.9bn in 2020.
Statistics reveal that European phone sales, including landline, mobile and smartphones, are also forecast to see a decline of 6.3% in 2020, reaching $106.2bn.
The TV, radio, and multimedia market is expected to see a 6.1% decline year-on-year, with revenues falling to $49bn in 2020. The TV peripheral devices market follows suit, with $1.8bn in sales, 1.7% less than a year ago.
The average revenue per user in the European consumer electronics segment is expected to drop by 6.3% year-on-year to $252.1 in 2020. Over the next five years, this figure is forecast to increase to $282.3.
According to statistics firm Statista, Europe’s consumer electronics industry is expected to recover in the next two years, with revenues rising to over $230bn in 2022. By the end of 2025, this figure is pegged at $240bn.
Online sales generate one third of 2020 revenue
With consumers shifting from physical stores to online shops, e-commerce became the key driving factor of the consumer electronics market in 2020.
In 2019, online sales generated 29% of the combined revenue in the European consumer electronics segment. This figure is expected to rise to 33% in 2020. By 2023, online shops will account for 37% of all consumer electronics sales in Europe.
Germany represents the largest European consumer electronics market, with 87 consumer electronics chains and $29.3bn in revenue in 2020, an 8.1% drop year-over-year.
The United Kingdom ranked second with 61 consumer electronics chains and $28.8bn in sales, 2.7% less than in 2019. France and Spain follow with $24.9bn and $10.8bn in revenue in 2020, respectively.