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Euromonitor data predicts wearables as the next big thing
Sales of wearable electronics are projected to exceed 305 million units in 2020, making them the world's second-best-selling products behind smartphones. The ascendency of wearable electronics provides a much-needed boost to retailers and manufacturers as the historic dynamic growth of tablet sales comes to a grinding halt.
"Sales of smartphones will exceed 1.6 billion units in 2020, with this product literally changing the lives of the average consumer. Consumers in emerging markets view smartphones as a necessity and use them as their only internet device," said Head of Consumer Electronics of Euromonitor International, Loo Wee Teck. "While these consumers are very much into tablets for media consumption, like their counterparts in developed markets, the lack of access to wireless internet networks in emerging markets means that consumers will prefer larger-screen smartphones. As a result, one in three smartphones sold globally in 2020 will be a phablet, with a screen size between 5.5 and 7 inches."
Key consumer electronics trends are:
- The dynamic growth of tablets comes to a grinding halt: After registering an enviable 66% volume CAGR during 2010 to 2015, sales of tablets will drop to a 2% CAGR over the next five years. That said, retail sales of tablets are projected to exceed $65 billion in 2020, indicating that the category is still a critical revenue generator for both manufacturers and retailers;
- Digital SLRs buck the trend: Sales of digital SLRs are projected to grow despite the overall decline of digital cameras;
- Ultra HD TVs to drive growth of LCD TVs: Sales of LCD TVs are projected to grow from $138 billion in 2015 to $195 billion in 2020, driven by the popularity of Ultra HD TVs;
- It's not over for laptops: Sales of laptops are still projected to grow at a modest 1% CAGR despite years of naysayers predicting the death of PCs; and
- The future of consumer electronics retailing will be increasingly online: Internet retail will account for close to 30% of value sales in 2020.