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
Consumers are more selective in buying electronic devices
Consumers are looking for tangible everyday benefits at a justifiable price, rather than simply choosing the cheapest products. As affordable devices close the feature gap with premium models, higher prices need to be justified by clear improvements in performance, durability or convenience.
Extended ownership is weakening replacement demand
Laptop and smartphone volume sales are projected to fall by 7.4% and 6.8%, respectively, in 2026. Devices are lasting longer, while incremental improvements provide fewer reasons to replace products that still work.
AI alone is no longer a purchase driver
77% of online survey respondents used at least one generative AI tool in the past month. As AI becomes integrated across more devices and price tiers, differentiation is shifting from offering AI to improving how consumers use it for everyday tasks.
A growing middle class drives the next wave of growth
A growing middle class, better connectivity and low ownership levels are making emerging markets the main source of new volume, led by smartphones. As spending power expands, those same consumers add earbuds and wearables, extending spending well beyond the first device.
Consumers still pay more, but only for visible upgrades
Consumers are buying fewer devices but are willing to pay more where the improvement is immediate, as shown by growth in OLED TVs, TWS earbuds and smart wearables. Premium TWS earbuds are well positioned because they deliver a noticeable everyday upgrade without the cost of replacing a larger device.
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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