Market Trends of Latin America Consumer Electronics Industry
This section covers the major market trends shaping the Latin America Consumer Electronics Market according to our research experts:
Increasing smart device penetration in Latin America
Demand for smart accessories, smart home devices, and other smart home devices in Latin America is increasing. This, combined with increased environmental awareness, is inspiring the adoption of energy-efficient products that enable higher performance efficiency cost-effectively.
The transition of the smartwatch from a luxury gadget to a lifeline addresses medical conditions by gradual development into medical equipment. The Apple Watch Series 4 is a typical example, featuring technical features like high-quality heart readings and fall detection.
Various companies, such as TCL Electronics, sell televisions ranging in size from 32 to 85 inches in Brazil. Over 20% of those are large-screen smart TVs with cutting-edge technologies such as 4K and Quantum Dot. In 2021, smart TVs accounted for 86.6% of the company's total global sales volume, with a wide range of product offerings ranging from the X, C, and P Series. Apparently, the company's products perfectly match the demand of Brazilian consumers.
The availability of devices that encourage the automation of daily chores shifted consumers' preferences away from general single-purpose electronic products and toward multi-functional smart devices. As a result of the strong growth for various wearable, smart home, and other consumer electronic devices, consumer electronics manufacturing companies continued to flourish.
Brazil is expected to hold a significant market share
Countries such as Mexico, Brazil, and Argentina, among others, offer a potential opportunity for companies offering smartwatch devices in these emerging economies. For example, Samsung has already established one of the most significant smartwatch presences in these regions. Fitbit Ionic has launched its Fitbit Versa, Fitbit Ionic, and Fitbit Ionic Adidas Edition smartwatches in Argentina. These significant developments are expected to accelerate the growth of wearables in these regions.
In Brazil, smart TV penetration has increased significantly. Due to the Internet, integration has become a standard feature in the majority of televisions sold in the region. TV sets in Brazil were smart TVs projected to increase to 46 % by 2023.
Google has dedicated a team with hardware experience to developing new smartwatch designs on the Wear OS platform. Incorporating the feature in the Wear OS was useful in increasing the customer base for the Wear OS-based products.
Brazil's consumer electronics industry has grown over the last decade and is expected to grow further in the coming years, generating more than 40 billion US dollars in revenue by 2026. With 86 people per 100 owning a smartphone in 2021, the telephony segment accounted for the majority of revenue.
At the same time, the television and computer segments - the latter of which includes desktop PCs, laptops, and tablets - are also in high demand in the Latin American country. In the first ten months of 2021, TV production in Brazil will exceed nine million units.
