The COVID-19 crisis has reportedly 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.it, the European consumer electronics industry revenue is expected to amount to US$213.8 billion in 2020, a US$14.2 billion plunge amid the COVID-19 outbreak.
Statista data revealed that the European consumer electronics segment has witnessed a steady growth in recent years, with revenues rising from US$208 billion in 2012 to US$227.9 billion in 2019.
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 $55.9 billion in 2020.
Phone sales in Europe, including landline phones, mobile phones, and smartphones, is expected to generate US$106.2 billion in 2020, a 6.3% decrease amid the COVID-19 outbreak.
TV, radio, and multimedia segment are reportedly set to witness a 6.1% drop year-over-year, with revenues falling to over US$49 billion in 2020.
The average revenue per user in the European consumer electronics segment is expected to drop by 6.3% YoY to US$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 US$230 billion in 2022. By the end of 2025, this figure will touch almost US$240 billion.
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 reportedly represents the largest European consumer electronics market, with 87 consumer electronics chains and US$29.3 billion in revenue in 2020, an 8.1% drop year-over-year.
The United Kingdom ranked second with 61 consumer electronics chains and US$28.8 billion in sales, 2.7% less than a year ago. France and Spain follow with US$24.9 billion and US$10.8 billion in revenue in 2020, respectively.
