The Summer Olympics and the European Football Championship have not given the consumer electronics industry in Germany the sales growth it had hoped for. This is evident from market figures published by the digital association Bitkom in the run-up to the IFA technology fair. In the past, major sporting events have always led to consumers buying new and larger televisions, says Bitkom CEO Bernhard Rohleder.
“This effect did not occur this year,” says Rohleder. According to the trend study by the digital association Bitkom on the “Future of Consumer Technology 2024,” sales of classic consumer electronics such as televisions, digital cameras and audio equipment in Germany will continue to decline slightly this year. In concrete terms, the market for classic consumer electronics will shrink by 7.5 percent this year from 8.2 billion euros to 7.6 billion euros.
The silence in televisions is also due to the fact that the market is still well saturated. Especially in the first Corona year of 2020, many people have extensively equipped themselves at home with new technologies and new devices, Rohleder explains. “People went on vacation less, but bought technology and electronics.” However, after the end of the pandemic, we are not yet at the point where the electronics purchased at the time would have to be replaced.
Smartphone business has overtaken consumer electronics
The smartphone industry is now larger than the traditional consumer electronics market. The German industry association expects 21.4 million devices to be sold this year. The sector will generate a turnover of 12.3 billion euros, 3.7 percent more than the previous year. A relatively new segment in the industry is also developing well, namely the area of so-called wearables. The association expects 13.1 million devices to be sold in Germany this year. The turnover with the new category amounts to 2.6 billion euros, 8.1 percent more than the previous year.
Sales drivers in the new wearables segment are mainly smartwatches. According to a representative survey by Bitkom, 36 percent of the population in Germany now uses a smartwatch at least occasionally. The connected wristwatches are particularly popular among young people. In the age group between 16 and 29 years, almost two-thirds wear a smartwatch (64 percent). In the age group between 30 and 49 years, this is still 48 percent. However, only 14 percent of people in Germany aged 65 and over still wear a smartwatch.
What other smart gadgets are interesting?
In addition to smartwatches, according to the Bitkom study, more and more smart accessories and gadgets are coming onto the market that can measure body data such as heart rate, temperature or fluid balance. 24 percent of people in Germany would like to wear smart headphones or have already worn them. 22 percent would wear smart insoles in their shoes, wearing a smart belt would be an option for 14 percent, a smart patch for 13 percent and smart clothing for 12 percent. And 11 percent would like to wear a smart finger ring or already do so.
“These new types of wearables are generally still quite expensive and are better known as niche products for specific health or sports purposes. “But they have the potential for the mass market and can also replace other established wearables,” Rohleder emphasizes. 24 percent can imagine having a small smart assistant attached to their tooth. Around a fifth (19 percent) would even be open to having a small smart assistant implanted.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
