Consumer electronics volumes are set to decline in 2026 as consumers stretch replacement cycles and hold back on big-ticket purchases. Spending is shifting towards affordable devices, visible upgrades and emerging markets where ownership remains low.
Delivery
This report comes in PPT.
Key findings
Affordable premium
Consumers are becoming more value-conscious, opting for mid-tier devices that offer flagship-like features. Brands such as Hisense are gaining share by delivering innovation at accessible price points. Even in developed markets such as Japan, demand for affordable premium remains strong, with Hisense holding 18% of the LCD TV market.
New wave of Chinese brands
Chinese brands are reshaping global tech markets by focusing on localisation, affordability and design. Transsion leads Nigeria’s smartphones market with a 63% share, while Soundcore is gaining global traction in TWS Earbuds in both developed and emerging markets.
Next generation of wearables
Wearables are evolving beyond the wrist, with smart rings and glasses gaining popularity. The wearables market is projected to grow 32% to USD56.6 billion by 2030. Consumers are increasingly open to trying new brands as wearables become more embedded in daily lives.
Personalistion can be a differentiator
Consumers are most comfortable with AI-driven personalisation that enhances convenience without feeling intrusive, making it a powerful tool for brands to drive engagement, loyalty and differentiation in a saturated market.
Green by design
Sustainability has shifted from a differentiator to a baseline expectation. Consumers now demand energy-efficient, repairable and recyclable devices, but are not always willing to pay more. Brands that lag behind risk reputational damage, regulatory scrutiny and lost sales.
Our expert’s view of consumer electronics in 2026
Key findings
Modest forecast growth but consumers still spend where it counts
Top five trends in consumer electronics
Top five trends uncovered
Economic headwinds reinforce value-driven spending
Cheap no longer means basic as affordable brands close the feature gap
Growth now follows value, not simply lower price or brand prestige
Consumers are not upgrading as often but spending has not gone away
Extended financing prolongs replacement cycle of smartphones
Less sales as consumers are keeping their existing products longer
AI becomes just another feature, raising expectations for smarter experiences
AI becomes a standard part of the device experience
Growth opportunities shift as AI evolves from feature to experience
A growing middle class is creating the next growth engine for emerging markets
Winning emerging markets through accessible technology
Value-for-money positioning unlocks growth opportunities in emerging markets
Consumers are buying fewer devices but spending more on meaningful upgrades
Premium TWS earbuds show consumers still pay for meaningful upgrades
Consumers still pay more for products that deliver clear value
Future implications
Opportunities for growth
Consumer Electronics
Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.
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