By: Alex Lashkov
Expert forecasts predict that the global electronics market will experience a steady annual growth rate of 3-5% in the coming years. However, geopolitical uncertainties, increasing demand for electronic components, and risks faced by manufacturers are making consumers uneasy. Admitad partner network reports that online orders for electronics grew by over 15% in the first half of 2024. In the US, the demand spike was even more pronounced, with a growth of over 33%.
Admitad’s analysis encompassed more than 15 million global orders and over 1.4 million US orders from 2023 through January-May 2024. The study covered orders from both global brands and local marketplaces, including Alibaba, Temu, Acer, Realme, Samsung, OnePlus, Lenovo, Apple, Mivi, and Oppo.
US trends in 2023 were already ahead of the global market. According to Admitad’s data, American consumers placed 25% more orders in the electronics segment compared to a global online sales growth of 9%, and they spent 13% more than in 2022.
However, these figures seem modest compared to the frenetic demand of the first half of 2024. Americans made 33% more electronics purchases in January-May than they did in the same period last year. They also spent 35% more on them. The average order value in the US electronics category now stands at $108.
The share of mobile shopping in the country has slightly decreased at the beginning of 2024 – from 59% to 55%. Users are taking a thoughtful approach to purchasing, comparing several alternatives both in terms of features and reviews.
Anna Gidirim, Head of Admitad, noted, “The global spike in demand for electronics is understandable. If last year, some buyers were still postponing the upgrade of computers and phones or the purchase of new gadgets because of rising prices; now it seems that everyone has already realized that the rise in cost is not a temporary phenomenon, and prices will clearly not go down in the near future. Both the cost of manufacturing and the price of raw materials for electronic components are rising. At the same time, the demand for them is increasing, including orders from government customers and large private industrial complexes. All these factors, of course, affect the prices and availability of electronics for ordinary customers.“
In early 2024, consumer anxiety was exacerbated by escalating geopolitical tensions around Taiwan, a significant hub of the global electronics industry, coupled with extensive media coverage. Many buyers expressed a desire to “purchase gadgets now before it’s too late.” Despite high prices, they fear that their options will narrow further and some choices may become unavailable.
According to Admitad data, purchases from the Home appliances category jumped the most globally, with demand for them increasing by more than 20% in 2024. This was followed by consumer electronics (+18%), computer and office equipment (+15%), electronic components and supplies (+7%), and phones and telecommunications (+6%). American trends mirrored these global patterns.
Despite the intense demand, consumers are trying to reduce their financial impact. Admitad’s calculations reveal a doubling of the share of US customers using cashback services for electronics purchases. The use of coupons also grew, from 7.6% to 14% of orders.
Content platforms, affiliate stores, mobile apps, contextual advertising and social media remain the best channels for attracting sales for electronics brands in the US. These customer sources are the ones that will account for up to 90% of all orders in the category in 2024. Affiliate publishers, who attract customers and orders for brands for remuneration, are also not left out of the overall hype. Their revenue growth in the US has already exceeded 39% in the first half of the year.
A notable global trend recently reaching the US is the rise of sales through financial stores, which offer attractive credit or installment purchase options. The global price hikes and customers’ desire to quickly upgrade appliances are driving more people to these options. The number of orders through these platforms has already doubled globally in 2024.
Although the current situation looks favorable for electronics brands in the US and globally, with products selling rapidly, there is a risk of market overheating. Excessive customer activity in the first half of the year could lead to an unplanned downturn in the second half. Brands should consider this possibility when planning their activities and budgets.
Published by: Khy Talara
