Driven by smart speaker growth.

The world’s largest consumer electronics and appliances exhibition, IFA Berlin, has predicted that total sales for digital consumer products and appliances will exceed $US1 billion for the first time in 2018.

This prediction was made at the recent IFA Press Conference in Rome, promoting the exhibition which will be held from 31 August to 5 September in Berlin this year.

Sourcing GfK data, IFA predicts expenditure for Digital Products will exceed 1 trillion US dollars ($1.014 billion) in 2018 – representing a 3.9 per cent increase on the previous year

  • TV sets will represent $US122 billion in sales value – an increase of 14% year on year and total volume sales of 236 million units – increase of 5.8% year on year.
  • Ultra HD TV sets will represent $US77.8 billion in sales value – up 35% year on year and total volume sales of 98.4 million units – an increase of 38% year on year.
  • Smartphones will represent $US487 billion in sales value – an increase of 4% year on year and total volume sales of 1.527 million units – an increase of 3.2% year on year.
  • Wearables will represent $US28 billion in sales value – an increase of 35% year on year and total volume sales of 211 million units – an increase of 32% year on year.
  • Smart Speakers will represent more than 150 million units – an increase of 230% year on year.
  • Major Domestic Appliances will represent a year on year sales value of 10% to $US216 billion
  • Small Domestic Appliances will represent a year on year sales value increase of 4% to $US68 billion.

Panasonic SC-GA10 speaker with Google Assistant built-in

GfK Retail and Technology global director for consumer electronics, Jurgen Boyny global director said manufacturers need to continue to motivate consumers to buy new products.

“It is the consumer who matters – industry innovates to meet the consumers’ needs. Now that people are digitally connected, they are keen to make the most from this experience.

“Customers want to use the technology to the full, as quickly as possible. They want entertainment and communication, lifestyle and convenience. As soon as consumers can see and understand the use of an innovation, they are willing to pay for it.”

“We expect an ongoing positive market development for both segments of home appliances,” said Georg Walkenbach, Member of German industry association – ZVEI. “Growth will continue in almost every country around the world, because the middle classes around the world keep increasing their spending. At the same time, new technologies and design trends are driving the growth potential in many product groups. A great example is the kitchen, where we see innovation in nearly every product category.”

IFA Executive Director, Jens Heithecker said, “From our IFA vantage point, we see the key trends across brands, start-ups, inventors, retailers and consumers. And what’s obvious to us is that we are at the tipping point for a dramatic acceleration of innovation, driven by technology megatrends and ever closer co-operation across the whole industry ecosystem. This will kick-start growth, transform our lives and will soon give the term ‘consumer electronics’ a completely new meaning.”