North America Consumer Electronics Market size exceeded USD 200 billion in 2020 and is set to observe around 10% growth rate between 2021 and 2027.
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Shifting consumer focus toward smart home automation and new product innovations are driving the market growth at a significant pace. Market players are establishing strategic partnerships to enhance their consumer electronics & smart home capabilities. For instance, in August 2021, GE Appliances signed an agreement with Google Cloud for developing advanced smart home technologies for its electronic appliances. GE appliances will leverage Google’s robust platforms, such as Google Assistant and Android, to develop AI-enabled interface modules in appliances.
Supportive government initiatives for improving per capita incomes are playing a vital role in increasing consumer disposable incomes in the U.S. As per the quarter report released by the Bureau of Economic Analysis, disposable incomes of the U.S. citizens rose by around 65% in the first quarter of 2021. Additionally, stimulus payments of USD 2.36 trillion by the Government of U.S. accounted for a significant bump in the per capita incomes of U.S. citizens. Increasing disposable incomes are encouraging consumers to purchase advanced technologies that are equipped with consumer appliances to enrich their lifestyles.
The North America consumer electronics market was affected considerably in 2020 owing to the outbreak of COVID-19. Governments of the U.S. and Canada enforced stringent lockdown measures to curb virus transmissions. Social distancing norms and the closure of consumer electronics stores impacted various consumer electronics product sales. In March 2020, Best Buy shortened its store hours and limited the number of customers at its stores in Canada to adhere to social distancing measures. Contactless deliveries and easy EMI options offered by e-commerce websites increased the sale of consumer electronics through the online distribution channel in 2020.
North America Market, By Product
Technological advancements in audio devices, such as AI-interfaced noise cancelation and long-distance wireless connectivity, are creating robust opportunities for the market. Companies, such as Sony Corporation, Sennheiser Electronic GmbH, and Apple Inc., are focusing on new product innovations to improve their market shares. For instance, in June 2020, Sony Corporation launched noise-canceling WH-1000XM4 headphones in the U.S. The headphones connect two devices at once and comprise five built-in mics for improved sound quality as compared to the previous model, WH-1000XM3.
Increasing consumer disposable incomes in North America are encouraging users to opt for advanced consumer electronics devices. Established players including GE Appliances and AB Electrolux are strengthening the capabilities of their manufacturing facilities to gain significant shares in the market. For instance, in June 2021, AB Electrolux opened a new warehouse in SPRINGFIELD, Tennessee. The new warehouse is connected to the new factory by a quarter mile long underground pathway. The new factory will manufacture ovens and electric free-standing ranges.
Competitive Industry Landscape
Prominent industry players include Apple, Inc., Samsung Electronics, Co., Ltd., Dell Inc., and Whirlpool Corporation.
These companies are introducing new energy-efficient models of household appliances in response to the changing market trends. For instance, in January 2019, Samsung launched its next-generation Smart Family Hub Refrigerator in Canada. The new model is highly energy-efficient and is integrated with Bixby voice control and the Samsung SmartThings IoT ecosystem.