The COVID-19 crisis has triggered a huge shift in consumer spending, which directly impacted the consumer electronics industry. With reduced incomes in times of economic turmoil, consumers choose to buy necessities such as groceries and household goods and avoid non-essential, big-ticket purchases like LCD TVs and new smartphones.
According to data presented by Finaria, the European consumer electronics industry revenue is expected to amount to $213.8bn in 2020, a $14.2bn plunge amid the COVID-19 outbreak.
PC and Phone Sales to Witness the Biggest Revenue Drop in 2020
The European consumer electronics segment has witnessed a steady growth in recent years, with revenues rising from $208bn in 2012 to $227.9bn in 2019, revealed Statista data.
However, with supermarkets and showrooms of leading brands shut down during the COVID-19 lockdown and Europeans prioritizing their spending, the sales of consumer electronics products slumped in the first half of 2020.
Despite the global increase in demand for computers and laptops due to remote working and distance learning, the revenue of the computing segment is expected to drop by 6.3% YoY to $55.9bn in 2020.
Statistics show that phone sales in Europe, including landline phones, mobile phones, and smartphones, is expected to generate $106.2bn in 2020, a 6.3% decrease amid the COVID-19 outbreak.
TV, radio, and multimedia segment are set to witness a 6.1% drop year-over-year, with revenues falling to over $49bn in 2020. TV peripheral devices market follows 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% YoY to $252.1 in 2020. In the next five years, this figure will jump to $282.3.
Statista data revealed that 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 will touch almost $240bn.
Online Sales to Generate One-Third of Revenues in 2020
With millions of consumers shifting from brick-and-mortar 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 a year ago. France and Spain follow with $24.9bn and $10.8bn in revenue in 2020, respectively.