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Smart appliances to grow 34.9% CAGR by 2030

Shipments of smartphones and tablets will remain unimpressive but steady over the coming years, while smart appliances will see strong growth, marking a 34.9% CAGR to 2030, according to global technology intelligence firm ABI Research. While shipment growth remains mixed, major consumer electronics vendors are making significant changes to their supply chains, diversifying their supplier base to mitigate against disruption, and implementing new technologies to meet product circularity regulations.

“Consumer electronics companies are rethinking their supply base and how they deliver products to consumers. Heavy reliance on contract manufacturing in China has forced companies like Apple and Samsung to diversify, with growing investment in Vietnam and India. As companies also develop and expand their presence in new markets, many are focusing on their E-Commerce offerings to support direct-to-consumer models and ride the significant growth of online retail in the consumer electronics sector,” states Ryan Wiggin, Senior Analyst at ABI Research.

Consumer electronics has one of the highest, often the highest, online retail penetration levels compared to other retail segments. For several advanced economies, sales made online for consumer electronics as a percentage of overall sales are expected to surpass 50% by 2030, with some countries, including the U.S., U.K., South Korea, and China, surpassing this level in the next three years.

Diversifying supply and improving the last mile while maintaining lean inventory requires effective planning software. Solutions providers such as Kinaxis, Siemens, and RELEX Solutions support companies at the manufacturing and retail ends to gain better insights into their supply, accurately assess demand, and manage upstream and downstream product flows.

“Under countries and regions strategies to achieve a more circular economy, sectors that use the most resources and where the potential for circularity is high are of primary focus. Consumer electronics, ICT, and batteries fall directly into this category, putting consumer electronics brands under the spotlight of regional authorities. Developing more granular asset tracking is becoming essential to ensure compliance and ensure that reverse logistics is leveraged to improve the re-supply of products, ultimately maximizing profitability,” concludes Wiggin. ABI Research

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