The consumer electronics market in the United Kingdom is highly competitive and diverse, with several local and international players.
The increasing demand for technology products such as smartphones, laptops, televisions, and smart home devices is propelling growth in the market.
Further, the rise of internet shopping in the UK is a significant driver in consumer electronics market growth. Internet shopping is more prevalent in the UK than in any other country. In 2021, 82% of the country’s population had bought something online.
Consumer electronics in UK: market share and demand
The UK consumer electronics market is currently valued at US $10 billion. It is expected to grow at a compound annual growth rate (CAGR) of 8% in five years.
The UK consumer electronics market is dominated by significant world brands, Sony, Samsung, Duracell, Nintendo, and Canon. Consumer electronics are the most popular segment in the country’s retail sector, growing by a whopping 15%.
The rise of online shopping has created an increased demand for consumer electronics. The COVID-19 pandemic forced lockdowns, which increased demand for entertainment and communications devices such as TVs, laptops, and mobile devices.
Key sourcing factors for electronics in the UK
1. Access to suppliers
The UK consumer electronics market is a competitive market that produces a variety of electronics giving businesses a wide range of products.
Further, the market has trade shows such as the Consumer Electronics Show (CES) and the Electronic Components Show (ECS) are great opportunities to meet and network with suppliers. The trade shows allow businesses to sample consumer electronics before purchasing.
2. Quality products from reputable brands
In the United Kingdom, businesses have access to a wide range of quality products from reputable brands in the electronics market. Some of the most popular brands in the UK include Apple, Samsung, Sony, LG, and H.P. These brands are known for their quality, reliability, and customer support, which are important factors for consumers when making a purchase.
3. Advanced technology
The availability of advanced technology is a critical factor in the growth of the United Kingdom consumer electronics market. Advanced technology supports innovation, product differentiation, and increased efficiency. Due to technological advancement, businesses can be assured of acquiring the latest consumer electronics in the market.
4. Good delivery lead time
Good delivery lead time is essential in sourcing consumer electronics in the United Kingdom market, as it affects customer satisfaction and the overall supply chain efficiency. A good delivery lead time means that the products are delivered promptly without significant delays.
Effective logistics and transportation networks, including road, rail, air, and sea transportation, ensure that products are delivered quickly and efficiently to customers.
Consumer electronics in the UK are protected by numerous laws that protect the market against counterfeits and imitations. RoHS, WEEE, EMC, REACH, and C.E. laws and regulations help establish standards in the market. Consumer electronics products sold in the E.U., including the UK, must comply with E.U. safety, health, and environmental protection requirements.
Market trends & opportunities in UK consumer electronics market
1. Wearable technology
The UK wearable technology market has also seen significant growth in recent years, driven partly by the popularity of fitness trackers and smartwatches. With the increasing focus on health and wellness, this market is expected to grow. Businesses can capitalize on the expected growth.
The UK gaming market is one of the largest in Europe, with gamers spending billions of pounds annually on games, consoles, and accessories. With the increasing popularity of esports and the emergence of cloud gaming, this market has opportunities for growth.
Consumers are increasingly concerned about the environmental impact of their electronic devices, and there is a growing demand for eco-friendly and sustainable products.
Businesses that can offer products with environmentally friendly features are likely to have a competitive advantage in the market.
4. Smart home technology
The smart home market has seen rapid growth in the UK, with consumers increasingly looking to automate and control various aspects of their homes through technology.
This has increased demand for smart speakers, smart thermostats, and smart lighting systems. Ring door cameras, Alexa, intelligent air conditioning, and others have become very popular in the UK.
According to Insider Intelligence, online shopping has increased by 5.16% in the last three years. E-commerce has become an increasingly important channel for consumer electronics sales in the UK, with online sales accounting for a significant proportion of overall sales. Companies offering a seamless online shopping experience will likely benefit from this trend.
The consumer electronics market in the United Kingdom is a significant and growing market, driven by technological advancements, increasing consumer demand, and the adoption of digital devices and services.
The UK has a strong retail presence, with numerous electronics retailers, both online and in brick-and-mortar stores, providing customers with a wide range of options for purchasing consumer electronics. Businesses should consider sourcing consumer electronics from the UK due to the factors discussed above.