Consumer electronics is entering a new phase of growth, shaped by shifting expectations and tighter wallets. Retail value sales are projected to grow at a 3.3% CAGR between 2025 and 2030, outpacing volume growth, at a 2.7% CAGR. Growth will be powered by a new definition of value, rather than big-ticket splurging.
Affordable premium
Consumers are trading smart, not trading up. Rather than buying flagship models, they are opting for mid-tier devices that offer high-end features and design at more accessible price points. This shift is especially pronounced in markets where inflation and economic uncertainty are prompting consumers to stretch their wallets further.
71% of online respondents are concerned that the cost of everyday items is increasing
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2025
Next wave of Chinese brands
Transsion, Hisense and Soundcore may not garner as much limelight in developed markets as Xiaomi or Huawei, but these brands are rapidly winning over consumers in emerging markets. Transsion leads Nigeria’s smartphone market, with a commanding 63% share, built on localisation, affordability and design. Soundcore (Anker) is gaining traction globally by offering high-quality audio products that rival Apple and Samsung in performance but at more accessible price points.
While it is easy to dismiss these Chinese brands’ success as being driven by lower prices, the reality is that they offer a comprehensive range of products across multiple price points, and are quickly gaining sales, brand awareness and loyalty among younger consumers.
E-commerce has played a pivotal role in the success of Chinese brands. Wearables and wireless headphones are small and light, making them ideal for global shipping. The lack of physical stores and distributors reduces overheads, and allows Chinese manufacturers to price products lower or offer free shipping without sacrificing profit margins or cutting down on features.
New generation of wearables
Wearables are also evolving beyond the wrist, unlocking new growth in computing, entertainment and health. The market is forecast to grow by 32% to USD56.6 billion by 2030, with new form factors such as smart rings, eyewear and apparel gaining traction. These devices provide immersive entertainment and productivity experiences, and could eventually replace smartphones, laptops and even TVs.
Smart eyewear and headsets will emerge as strong contenders in propelling greater adoption of wearables beyond the wrist. These new categories offer new entrants a gateway into the growing wearable markets, but avoid the smartwatches market, which is dominated by tech giants like Apple, Samsung and Xiaomi.
As wearables become more embedded in everyday life, consumers are more open to trying new brands. Companies that can deliver differentiated, lifestyle-integrated experiences will be better positioned to capture share and build long-term brand equity in this fast-evolving space.
Defining a New Era
The definition of value is changing for consumers looking to buy electronic products. Consumers are looking for products that are aligned with their needs rather than focused on brand prestige. The rise of affordable premium, the growing presence of new Chinese brands and the evolution of wearables from the wrist to other parts of the body are trends that are driven by consumers’ more pragmatic approach to spending.
Companies need to develop products that offer relevant and useful innovations without inflating costs. In a market shaped by cautious optimism, those that align price with practical relevance will continue to grow their revenues.
For more information on the top five trends to watch and how wearables will evolve in the future, read our reports Top Five Trends in Consumer Electronics and The Future of Wearables – Computing, Entertainment, and Emerging Form Factors.
Download our white paper, The Rise of Chinese Brands in Southeast Asia, on how Chinese brands are disrupting the Southeast Asia market.