- Decrease in traditional consumer electronics sales observation
The Summer Olympics and the UEFA European Football Championship didn't trigger the anticipated sales surge in Germany's consumer electronics sector, as suggested by Bitkom's market data ahead of the IFA tech expo. Traditionally, such events would see consumers flocking to electronics stores or shopping online for bigger TV units, noted Bitkom CEO Bernhard Rohleder. Unfortunately, this trend hasn't materialized this year.
Bitkom's forecast on the "Future of Consumer Technology 2024" indicates a minor yearly dip in conventional consumer electronics sales in Germany. Specifically, the classic electronics market, including TVs, digital cameras, and audio devices, is estimated to shrink by 7.5% to 7.6 billion euros this year, from its previous 8.2 billion euros.
Coronavirus Boom - Sports Slump
The TV sales dip can be attributed to the overly saturated market. In fact, the initial COVID-19 year of 2020 saw people investing in home tech and gadgets due to travel restrictions, explained Rohleder. "People didn't go on vacations, but they purchased technology instead." Despite the end of the pandemic, it seems the newly purchased electronics are yet to be replaced.
The smartphone sector, however, has surpassed the conventional electronics market. Bitkom anticipates 21.4 million devices to be sold this year, generating a revenue of 12.3 billion euros, marking a 3.7% increase compared to the previous year. Another thriving sector is the wearable devices segment. Bitkom expects 13.1 million devices to be sold this year, totaling 2.6 billion euros in sales, a 8.1% year-on-year growth.
Wearables on the Rise
The revenue growth in the new wearables segment is largely driven by smartwatches. As per a Bitkom survey, 36% of the German population uses a smartwatch regularly. These smartwatches are favorably used by the young population. Among individuals aged between 16 and 29, 64% use smartwatches, while among those aged between 30 and 49, the number drops to 48%. The older generation is less inclined towards smartwatches, with only 14% of people aged 65 and above using them.
Bitkom's study reveals an increasing market for smart accessories beyond just smartwatches, such as smart headphones, insoles, belts, patches, and clothing. 24% of Germans have worn or would consider wearing smart headphones. 22% are open to using smart insoles, while 14% are interested in smart belts, 13% in smart patches, and 12% in smart clothing. 11% already wear or use smart rings. According to Rohleder, these novel wearables are currently expensive and are primarily seen as niche products, but they have the potential to enter the mass market and potentially replace established wearables. 24% would consider attaching a small smart assistant to their teeth, and about one fifth (19%) would even consider having a small smart assistant implanted.
The Commission has released Bitkom's forecast on the "Future of Consumer Technology 2024", predicting a minor yearly dip in conventional consumer electronics sales in Germany.
Despite the end of the COVID-19 pandemic, the initially purchased electronics in 2020 haven't been replaced, contributing to the TV sales dip in Germany as reported by Bitkom's CEO Bernhard Rohleder.
