Will electronics consumption grow in 2022?

Covid-19 was a significant event for the electronics market as it showed how vulnerable the global market is to health concerns. After two years of a pandemic that shut down the whole world, companies and distributors wondered how the market would recover and how open consumers would be to buying new tech goods.

In fact, according to a Strategy Analytics study, the global electronics market would have shrunk by 5.5% in 2022 if not for Covid-19. This suggests that companies need to be very careful when planning their strategies and products because they may not be successful in recovering quickly. Despite this fact, there are indications that the electronics market will recover in 2022.

Predictions for 2022 — The tech market will have a robust growth

According to Forrester’s Global Tech Market Outlook For 2022 To 2023 study, the global tech market will see a robust 6% growth in 2022 and 2023. This is significantly faster than pre-pandemic levels. Overall, software and tech consulting services will also grow fast in 2022, outpacing pre-pandemic levels.

2022 looks set to be a year when many tech players transition from growth and increased activity to a focus on embedding, consolidating, and optimizing existing processes. Large numbers of tech companies have benefited from the organizational drive towards the digital transformation that accelerated almost overnight in every sector.

The study has some other interesting conclusions:

1. The software area will grow by 10.5%. Cloud software continues to expand and public cloud spending is expected to double by 2025.
2. IT services will grow 6.8%, driven by digital and cloud investment.
3. Europe’s tech spending is expected to grow by 5%.

The Smart TV market will also grow

According to Smart TV Global Market Report 2022, by Toshiba Corporation, and Hitachi Ltd., the global Smart TV market is expected to grow from $174.50 billion in 2021 to $186.90 billion in 2022, which represents an increase of  7.1%. 

The growth is mainly due to companies resuming their operations and adapting to the new normal, while recovering from the COVID-19 impact, which led to restrictions on social distancing, remote working, and closures of commercial activities. The Video-on-demand service is a key factor in the growth of the Smart TV market. This is because people are using video-on-demand services more often, which means they are buying more Smart TVs.

Learn more about Smart TVs — their benefits, possible additional features, and extra costs and limitations.

The growth is mainly due to companies resuming their operations and adapting to the new normal, while recovering from the COVID-19 impact, which led to restrictions on social distancing, remote working, and closures of commercial activities. The Video-on-demand service is a key factor in the growth of the Smart TV market. This is because people are using video-on-demand services more often, which means they are buying more Smart TVs.

The impact of sports events on Smart TV sales

Big sports competitions, such as the European or the World Cup, reflect in TV sales, especially the big size and high-quality ones.

For example, in 2018, when the last World Cups happened, the trend was HD. In 2022, 4K will lead the way. Consumers are becoming more and more demanding, and if high quality and large dimensions exist, that’s precisely where they want to see the matches.

TVs are not only sought after by final consumers who want to watch the games in the comfort of their homes, but also by business owners, such as bars and cafes. After Covid-19, people miss going to these establishments to what the game with family and friends, and bars and cafes owner want to make their spaces more attractive and pleasant to receive them.

Here are some examples:

• The World Cup has greatly influenced the sale of TVs in Latin America. Months before the beginning of the Championship, Samsung registered a 49% sales increase in this region during that period.
• In 2002, TV sales in Asia (which hosted the event) were up 16% and 5% in football-mad Europe.

eSTAR has a wide range of TVs to offer for different end-customer needs. The economics change in 2022 so now more than ever it is important to offer an affordable solution to the market for those who still want to enjoy sports programs and be present in current events.

Going international is still a company’s goal

Many companies will continue to prioritize international growth in the next two years.

A Grant Thornton study found that 60% of executives plan to allocate more resources to addressing the goal of international growth in 2022. Despite the added complications of higher energy costs, transfer pricing, supply chains, compliance burdens, and continued concerns about ongoing disruptions on transport infrastructures.

Besides that, 57% plan to sell their products and services in more countries, and 52% plan to use more non-domestic suppliers and outsourcers. Internationalization presents an admirable opportunity for tech companies. However, it also opens them up to several risks.

eSTAR is present in over 30 countries 

eSTAR is selling products in over 30 countries all over Europe. The partnership with ESN (European Sales Network) plays an important role in internationalization, which allows us to continue to grow business in new regions, including America, Latin Gulf, Africa, Middle-East, and the Asia Pacific.

ESN supports companies to enter the Worldwide market by investing its energy and expertise with selected vendors and through long-term distribution partnerships. ESN offers business access to global markets, sales channels, and customer networks, through experienced professionals saving financial investment and time to enter markets. ESN is active in key markets across smart wear, audio, portable power, and e-mobility.

Find your nearest eSTAR service center.

What challenges is the tech market facing in 2022?

2022 is going to be a recovery year for tech companies. However, it will be challenging too. Another article, also signed by Grand Thornton, focused on some of the challenges that tech companies will face and have some interesting conclusions too.

1. The risk of inflation. Inflation may result in a short-term flight out of riskier capital and a reduction in investment in some parts of the sector. However, we continue to see an active investment appetite for recurring revenue-based technology and tech-enabled services, which appears to stay here for the long haul.
2. Slowing growth rate and pressure. Because of the rapid growth over the last two years, deceleration is likely. However, despite this slowdown, the overall market size is still projected to be larger than it was in 2018.
3. Competing for talented human resources will be even more fierce. One of the most substantial effects of the pandemic has been the general shift to hybrid working. The tech industry is used to competing for talent, and moving to a remote or hybrid working practice aggravated these issues.  A remote workforce opens companies up to a world of talent and means more options for employees looking to move on.

Remote and hybrid working spaces are becoming more popular, as employers look for ways to save on costs and employees seek ways to reduce the time they spend commuting. This demand has led to a surge in sales of laptops, tablets, and other tech products, essentially for higher productivity and better home-office conditions. 

Also, the pandemic revealed how teaching needs urgently to change and digitalize the learning system. So, now that the pandemic is over and everyone is returning to school, it is predictable that tablets and tech goods sales will rise over the year.

The market is facing some challenges, and all brands are shifting towards customers’ needs and different lifestyles in the post-pandemic period. Now, more than ever, eSTAR is not backing up and still can offer affordable electronics for different segments.

Want your company to keep up to date with these trends and challenges? So do we! eSTAR is always looking for new partners and distributors who share the same vision. So, if you are looking for new innovative tech goods to add to your product range, talk to us! Send us an email at enquiries@estar.eu, call +370 37 328600, or leave a message.