The consumer electronics and mobile device vendors have experienced a significant slowdown in demand, due to a number of related factors that result in the ongoing downward trend. This is a global phenomenon, where few markets across the globe are likely to drive significant new growth opportunities.
The global adoption of public cloud computing services, the increased performance of smartphones and the demand for Chromebooks continue to negatively impact the rest of the consumer electronics market and to a somewhat lesser degree the enterprise IT marketplace.
Worldwide tablet and PC shipments will fall by 2.1 percent to 398 million units in 2018, according to the latest market study by Canalys. But this represents the smallest decline of the past four years and sets the tone for an era of stability. So, when does the market trend return to growth? That remains a mystery.
Smartphone shipments are forecast to drop by 0.2 percent in 2018 to 1.462 billion units, which is down from 1.465 billion in 2017 and 1.469 billion in 2016. However, IDC expects the market to grow by 3 percent annually from 2019 onwards. Worldwide shipments should reach 1.654 billion in 2022 — that’s a five year compound annual growth rate (CAGR) of 2.5 percent.
Smartphone mirroring solutions, such as Android Auto and Apple CarPlay, have become key features in hundreds of car models in 2018. Mainstream automotive OEMs, such as Ford, GM, Groupe PSA, Honda and Volkswagen, have the highest percentage of new vehicles sold with the capability, either as a standard or optional feature.
With smartphone adoption slowing, growth is expected to be less than 2% this year and remain low throughout the forecast period. The biggest shifts occurring among the U.S. digital audience are no longer device-related, but rather, based on activities.