This trend can be attributed to interrelated effects. At its core is, on the one hand, the price decline observed for years in the TV sector, the highest-volume and highest-revenue segment of traditional consumer electronics. Although consumers are increasingly opting for cutting-edge technological products such as OLED or Mini-LED devices and very large screen diagonals of 75 inches and above when making new purchases, intense competition is putting pressure on prices, making technological upgrades difficult to monetize and barely able to offset the decline in unit demand. On the other hand, the TV and audio systems purchased during the boom years of 2020 and 2021 are characterized by high product quality, mature technology, and great durability. To create purchase incentives, the industry is focusing on ever larger screen sizes and new display technologies. Key innovations lie in the increasing optimization of systems, image display, and sound integration. Thanks to the use of AI, the viewing experience becomes significantly better even when TV broadcasters do not support new standards. 4K, for example, has long been an established standard on the device side and in cinema productions, while the majority of TV broadcasters have still not made the leap from HD to UHD even after almost 10 years. A market launch strategy by the established broadcaster groups, for example for HDR, would provide a clear incentive for earlier device replacement and a significant surge in demand, but this is not yet foreseeable.

In addition, there is a generational shift in media usage. Younger target groups in particular tend to consume streaming and gaming content or music via their smartphones, tablets, or powerful gaming PCs. With very large displays, powerful sound systems, and film and gaming offerings integrated as apps, manufacturers are therefore creating greater appeal in order to win over young media users to consumer electronics.

Ultimately, consumers’ current propensity to save also plays a role in consumer electronics, attributable to the general cost burden on households and geopolitical uncertainties: Private households are managing their budgets more restrictively. When in doubt, urgently needed everyday purchases for essential household appliances such as washing machines or refrigerators are given priority, while investments in consumer electronics tend to be postponed.

For traditional consumer electronics, differentiation through the premium segment, a very clear brand strategy, or highly emotional, lifestyle-oriented product concepts will become increasingly important in the future. The trend toward “ambient intelligence” is also helping consumer electronics tap into new target groups.