Market Trends of Power Strip Industry
This section covers the major market trends shaping the Power Strip Market according to our research experts:
Increasing Number of Electronics Devices in Residential Applications
- Prior to the pandemic, market conditions also indicated steady growth in the consumer electronics market. For instance, in January 2020, the Consumer Technology Association (CTA) predicted that the United States consumer technology retail revenue would be USD 422 billion, a 4% year-on-year (YOY) growth compared to 2019. This revenue included sales from traditional consumer electronics revenue powerhouses like smartphones, laptops, and televisions, along with income from streaming services and emerging technologies. Moreover, in July 2021, CTA predicted the U.S. technology retail revenue to hit USD 487 billion in 2021.
- Major drivers of future consumer electronics growth include the growing demand for smartphones, computing devices, artificial intelligence, and new technologies such as voice recognition. The replacement cycles and dropping prices of many electronic devices are expected to encourage continued consumption.
- The number of employees working from home was projected to increase by 300 million, according to the International Labour Organization (2020), and approximately 1.3 billion students started online learning from home, according to World Economic Forum's article by Lalani and Li (2020). Recreational activities have also shifted towards digital activities, requiring electronic equipment upgrades like monitors, game consoles, televisions, and other gadgets.
- Due to the global shutdowns and stay-at-home orders from the COVID-19 pandemic, many businesses were forced to transition to remote work. The consumer electronics market initially experienced a surge due to purchasing electronic products that support work from home at the start of the stay-at-home orders.
- With all the electronic devices that are used in residential and offices, the requirement for the number of electrical outlets to plug them is also increasing. Power strips enable a single outlet to handle multiple devices. Moreover, surge protectors are also increasingly used as they provide the benefits of a power strip and protect devices plugged into it from power surges greater in voltage than the devices can handle.
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Asia Pacific is Expected to Witness a Significant Growth
- Asia Pacific's electricity grids were primarily designed in the previous century, which were not built to accommodate the variability and fluctuations that characterize solar and wind energy. Renewables pose challenges for grid operators as their output fluctuates wildly throughout the day and between seasons, disrupting the supply and demand scenarios. This results in sudden power surge situations in the region. It can be controlled, and electrical and electronic devices can be saved by using surge protector power strips. According to the World Economic Forum, Asia has targeted to generate 23% of its primary energy from renewable sources by 2025. Hence, the region poses a large potential for surge protectors.
- Although the sales of consumer electronics in the Asia Pacific marginally declined due to the COVID-19 pandemic, it is projected to catch up by 2022 and continue to grow. The Asia Pacific region includes many emerging economies that have lower consumer electronics ownership rates and increasing consumer spending, creating plenty of opportunities for growth.
- The home video sector in the region is performing well due to the sustained demand for smart TVs, LCD TVs, and OLED TVs in selected markets. The rise of streaming content by domestic and international players such as Netflix and MX Player in India is boosting demand for smart TVs. As the average house size is getting smaller amid rising urbanization and rapid growth in per capita electronic devices, demand for power strips is expected to grow in the Asia Pacific.
- Domestic companies are expanding their presence and overall market share in the power strip market. Companies such as Anchor by Panasonic, Delixi electric, and other small domestic companies are focusing on the demand and providing their products at reasonable costs compared to international players.
- The education segment has been a significant contributor to the growth of desktop and laptop sales in Asia-Pacific since the pandemic. Desktops and laptops are distributed to support a transition to online learning, and classrooms are expected to have a hybrid nature in the future. The setup for the additional infrastructure of PCs and laptops is required to be accommodated in the current classroom and residential settings. This setup is expected to boost the demand for Furniture Power Distribution Units (FPDUs) and Relocatable Power Taps (RPTs).
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