E-Commerce Electronics Market (2022 - 2028) Size, Share & Trends Report By Type (Consumer Electronics, Household Appliances), By Region And Segment Forecasts

E-Commerce Electronics Market Summary

The global e-commerce electronics market size was valued at USD 641.2 billion in 2021 and is expected to reach USD 856.4 billion by 2028, registering a compound annual growth rate (CAGR) of 4.2% from 2022 to 2028. This can be attributed to the growing demand for electronics products on e-commerce platforms from developing nations.

Also, the promptly growing demand for consumer electronics devices, like laptops, and smartphones, in developed countries is the main factor driving the market. The industry has progressed considerably over the last few years due to numerous new technological developments. The emergence of smart devices and technological proliferation is anticipated to be the crucial factor driving the growth of this market in the coming years. Additionally, an upsurge in the number of nuclear families is also projected to drive the demand for household appliances in the forecast period.

The COVID-19 pandemic had a significant impact on electronics products around the world. A fall in exports and production of electronics components, owing to the temporary shutdown of international borders and production facilities, considerably impacted the overall market growth during the pandemic. Though, as governments begin to steadily relax lockdown rules and permit businesses to function with instructions of social distancing, the market can expect a period of relief in the short term owing to the growing demand for electronics products from the middle-class populations. Advancements and development in augmented reality technology have improved the online shopping experience of the customer which may accelerate the market growth. Augmented reality solutions allow consumers to imagine products in reality, from the ease of their homes. The 3D visualizations via augmented reality, which provides an opportunity for customers to see how products can look in their space before they promise to purchase, thereby accelerating the market growth. In addition to this, augmented reality solution helps online retailers to significantly reduce product returns by offering the try-before-you-buy digital experience.

The growing online shopping for electronic products among the consumer owing to the rising use of smartphones is propelling the market growth. In addition to this, shopping for electronics products has become more convenient and easier for the customers due to the rising internet penetration. Moreover, the companies are providing a heavy discount on online electronics buying and easy access to a wide range of products, this may save time and money which further accelerates the market growth.

Moreover, the growth of the e-commerce electronics market has been triggered by the increasing internet and smartphone penetration across the globe. In India, the number of internet connections in 2021 has increased significantly to 830 million, driven by the Digital India campaign. Out of the total internet connections, approximately 55% of connections were in urban areas, of which 97% of connections were wireless. This is expected to accelerate the market growth in the forecast period.

Furthermore, product innovation by manufacturers has been playing a dynamic role in boosting market growth over the last few years. Additionally, advancements such as the emergence of IoT (Internet of Things) across devices like fitness bracelets are also expected to impel the demand for consumer electronics in coming years. Likewise, promotional strategy and advertisement by the main player’s aids in the growth of the market. However, a primary disadvantage of e-commerce shopping is that there is a risk of purchasing unsatisfactory products via e-commerce. Some customers may receive defective or wrong products from online shopping. And this is an important factor challenging the growth of this market in the forecast period.

Type Insights

The consumer electronics segment contributed to the largest revenue share of over 80% in 2021. This growth is credited to the increasing demand for consumer electronics products in developed regions such as North America and Europe. Macroeconomic factors like changing consumer digitalization, buying patterns, and urbanization, are playing a prime role in the growth of this segment in coming years. Moreover, the increasing investment in technological development and innovation in consumer electronics by the manufacturers owing to the increase in their consumer base is expected to accelerate the market growth in the forecast period.

The household appliances type segment is expected to show good growth in this market in the forecast period. The segment is growing at 4.6% from 2022 to 2028 owing to increasing demand from developing regions such as the Asia Pacific. An upsurge in the population leading to nuclear families is likely to drive the demand for household appliances. Moreover, changing consumers’ lifestyles coupled with growing living standards are expected to accelerate the market growth over the forecast period. Additionally, increasing consumers’ inclination toward energy-efficient and eco-friendly electronic appliances led to significantly propelling the market growth over the forecast period.

Regional Insights

Asia Pacific led the global market with a revenue share of over 35% in 2021. This growth is owing to the rising demand for household appliances from developing nations such as China, Malaysia, and India. The increasing population coupled with the growing demand for fully automatic and smart connected electronics products from the emerging countries is anticipated to contribute to the regional demand. Moreover, the increasing internet and smartphone penetration rate in developing countries like India, and China is anticipated to propel the market growth in the forecast period.

North America is expected to register a significant growth rate of 4.6% from 2022 to 2028 due to the increasing demand for consumer electronics such as laptops, smartphones, and tablets across the region. Sales of smartphones in the market in Canada and the U.S. are mostly driven by replacement sales. Moreover, government initiatives for energy-efficient appliances across the U.S. are expected to rise the adoption of energy-efficient appliances. All these factors are anticipated to boost the growth of this market in this region.

Key Companies & Market Share Insights

Market players are introducing innovative methods with modern technology for the purchase of products such as AR (Augmented Reality) with a 3D display of products. Furthermore, key players are investing in new warehouses to escalate the storage and flourish supply chain of products in untapped regions worldwide. For an instance, Walmart Inc. announced the company has signed definitive agreements to become the major shareholder in Flipkart Group. This investment will help to trigger Flipkart Group's customer-focused mission to develop e-commerce in India with new technology. Also structured organizations, regional, and small-scale manufacturers are tying up with e-commerce platforms to increase their consumer base. Some of the prominent players in the global E-Commerce Electronics Market are:

• Walmart, Inc.

• Amazon, Inc.

• JD.com

• Alibaba

• eBay.com 

• Flipkart

• Shopify

E-Commerce Electronics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segment from 2017 to 2028. For this study, Grand View Research has segmented the global E-Commerce Electronics Market report based on type, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Consumer Electronics

  • Household Appliances

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa