Wiadomości Polska Biznes i finanse Global Tech and Durables Market in Recovery Mode
Biznes i finanse

Global Tech and Durables Market in Recovery Mode

The global Consumer Tech and Durables (T&D) market is expected to see modest gains in 2024, driven by easing inflation and omnichannel growth. Consumer confidence is on the rise, summer bookings are returning to pre-pandemic levels, and major sporting events like the Paris Olympics and the European Football Championship in Germany are driving demand.

NUREMBERG, Germany–(BUSINESS WIRE)– 2024 is anticipated to be a better year for the global Consumer Tech and Durables (T&D) market compared to 2023. With inflation rates easing and consumer confidence increasing, the market is set to see growth. Additionally, the return of summer bookings to pre-pandemic levels and the anticipation of major sporting events such as the Paris Olympics and the European Football Championship in Germany are expected to further boost demand.

By mid-year, the majority of T&D segments are experiencing consistent growth, with the overall market slowly recovering from its negative position. From January to June 2024, the global T&D market saw a slight decrease in revenue of 0.6 percent, totaling 395 billion US-dollars compared to the same period in the previous year. Looking ahead, NIQ-GfK experts predict a continued trend of stable revenue, with a decrease of 0.1 percent for the entire year 2024.

Omnichannel still reigns supreme, as consumers expect a seamless experience across all platforms.

The ongoing issue of inflation and high prices is a major concern for consumers worldwide, with 57 percent of global consumers willing to change stores in order to save money (NIQ Consumer Outlook report 2024).

“Omnichannel retailing remains popular, with 36 percent of total global T&D sales made online in the first half of 2024 – an increase of 0.4 percent from last year. But consumer behavior is changing, driven by price concerns and a desire for best value for money. The global T&D market must keep pace to achieve long-term, sustainable growth,” explains Nevin Francis, GfK’s insights expert for the Tech and Durables industry.

Chinese online retailers have made significant strides in Europe, with Temu ranking second in order volume for computers and electronics in the first half of 2024. Despite the lower average order value, attributed to the lower ticket price of items, Temu has seen 77 percent of German shoppers making repeat purchases in the last 60 days, according to Foxintelligence by NielsenIQ.

Regional differences in consumer spending caution vary based on purchasing power and local price levels. In the first half of the year, Western Europe and Developed Asia saw revenue declines of 1 percent and 9 percent respectively, while Eastern Europe and the Middle East experienced growth of 4 percent and 8 percent, and Emerging Asia also saw a return to growth.

“Price-conscious consumers are increasingly looking for value for money. As a result, the 15 promotional weeks in a year, such as the mid-year promotion and Black Friday already account for 34 percent of annual T&D revenue,” summarizes Nevin Francis. “Retailers and manufacturers must balance the demand for premiumization with a good price-performance ratio, while focusing on their unique selling proposition. To find that sweet spot, they need to know their target group better than ever before.”

The half-year results for global T&D are driven by specific trends. GfK panel data indicates that the Telecom and Photo categories have returned to positive growth in the first half of 2024, while other T&D categories are also regaining momentum and starting to recover.

Here is a breakdown of the growth and decline in specific T&D categories:

– Consumer Electronics (TVs, soundbars, etc.): decreased by 2 percent

– Telecom (Smartphones, etc.): increased by 2 percent

– IT (Mobile PCs, hardware, etc.): decreased by 5 percent

– Small Domestic Appliances (Fryers, mixers, etc.): decreased by 1 percent

– Major Domestic Appliances (ACs, ovens, etc.): decreased by 2 percent

The growth in the home appliances sector is being fueled by consumer desires for sustainability, simplification, and AI-powered intelligence. As personalized features and AI assistants make everyday household tasks more efficient and easier, demand for related devices such as smart ovens and cookers has increased by 30 percent year-over-year in revenue from January 2024 to June 2024. In general, convenience-oriented appliances such as robot vacuum cleaners and fully automatic espresso machines (up 9 percent and 7 percent respectively) and more environmentally friendly products such as A-labelled washing machines (up 39 percent in Europe) have gained ground.

The IT sector continues to prioritize premiumization, with a focus on increasing memory in devices. Laptops are now standardizing 16GB RAM, leading to a 3 percent increase in sales volume in the first half of 2024 compared to the previous year. Similarly, media tablets with 8GB RAM and larger displays of 9 inches and above are experiencing a significant 58 percent volume growth rate. Alongside this, consumers are also upgrading their IT accessories, with a notable 18 percent increase in Bluetooth keyboard sales and a 90 percent increase in monitors with refresh rates above 240 Hz.The B2B market is still struggling, with revenues down 6 percent year-on-year in the first half of 2024, in contrast to the slow recovery of the B2C market. However, there are positive signs in some areas of the mass market, such as a 4 percent increase in processor sales and an 8 percent rise in demand for software, particularly in security and collaboration solutions. AR/VR glasses, though still a niche category, saw impressive growth of 80 percent due to successful product launches at the beginning of the year.

Method Overview

GfK collects POS data from retail panels in over 70 countries worldwide for various sectors including consumer electronics, photography, telecommunications, information technology, office equipment, and household appliances. The figures are based on GfK panel market, with global data excluding North America and presented in US dollars NSP (non-subsidized price), unless otherwise specified.

GfK – a NielsenIQ company

For 90 years, we have built a reputation for solving crucial questions for our clients worldwide, helping them make informed decisions and driving their growth through a deep understanding of consumer behavior, market dynamics, brand performance, and media trends. In 2023, GfK merged with NielsenIQ, uniting two leading companies with unmatched global reach. Leveraging advanced analytics and state-of-the-art platforms, GfK delivers comprehensive consumer insights and a holistic view of retail data to drive „Growth from Knowledge.”


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