World EGP market 2024: forecast decline of $5.3 billion, smartphone and IT in the lead

The difficult economic situation since the start of the Russo-Ukrainian war is unlikely to see any real respite in 2024, and the EGP market is expected to suffer further with a significant drop in spending expected of $5.3 billion.

Traditionally even years, i.e. the years of the Football World Cup or Euro Football, are rather good for the consumer electronics sector with increasing sales of televisions, always one of the biggest markets of the EGP. And the holding of the Summer Olympic Games in Europe, in Paris this year, should have further accentuated the trend for the old continent, the world's largest market. But the continuation of the war in Ukraine, uncertainties in the Middle East and the Taiwan Strait, plus still high inflation will still be the case in 2024 with, as a result, uncertainty weighing on global consumption. If we add to this record sales of electronic goods during the health crisis linked to successive confinements on the one hand, and the development of teleworking on the other, the year 2024 promises to be difficult again. This context of weak global demand should continue to push the EGP market into the red. According to the American research and analysis firm, global spending on EGP is expected to fall by $5.3 billion in 2024.

Smartphone and IT markets, biggest declines expected££££

Of all the EGP markets, that of smartphones would be the most in decline, very far from its growth rate observed before the Covid pandemic -19 and during the first confinement. According to Statista, revenues should decrease by 11.6 billion for a total of 486.7 billion (compared to 498 billion in 2023), or -2.3%. The IT market, which includes desktop computers, laptops, tablets, keyboards and monitors, would also be struggling, with cumulative revenues of $314 billion, or $500 million or -0.2% lower than in 2023. .

Good news however, other segments of the EGP market should see growth this year. After the worst year in 10 years for the TV market, the latter should start to rise again under the cumulative effect of Euro 2024 and the Paris 2024 Olympics, at +2.4%. Thus, by adding TVs, radio devices, multimedia devices, digital cameras, headphones and speakers, the increase in global spending is expected to reach 4.6 billion and reach 195.1 billion dollars in 2024.

Projections for the Video Gaming segment are also positive, for example for gaming equipment which is expected to account for $1.2 billion in additional revenue compared to 2023. Television peripherals - video players, smart remotes and appliances of streaming- should follow with an increase of 900 million dollars and a total turnover of 12 billion dollars in 2024.

Other clarification from the study by Statista, 78.3% of total sales of consumer electronics in 2024 would be the work of physical stores while online sales would represent the remaining 21.7%. A distribution comparable to 2023.

Chinese market 2024, down sharply££££

China, world leader in consumer electronics sales, should account for around a fifth of global turnover in 2024. Which would correspond to largest decline for a country, -5% to $218.6 billion. The world's second largest EGP market, the United States will also experience declining revenues, -0.5% to $160 billion. Japan and Brazil would follow with a decline to -1.2% and -0.6% for responsive revenues of $44.1 billion and $35.5 billion. Only the Indian EGP market should be on an upward trend in 2024 with 73.1 billion dollars compared to 69.5 billion in 2023, an increase of 5%.