Consumers’ demand for advanced technology to improve their daily lives is fueling the growth of the consumer electronics industry. While a global semiconductor shortage is to some extent hampering the industry’s growth, the rising adoption of 5G and growing societal taste for smart devices, should help the industry continue growing. Consequently, we think the shares of leading consumer electronics companies Apple (AAPL), Sony (NYSE:SONY), LG Display (NYSE:LPL), and Sonos (NASDAQ:SONO) could be solid bets now.The consumer electronics industry has evolved dramatically in recent years, underpinned by an accelerated pace of digitization, a pandemic-induced remote working culture and virtual learning trends, as well as an increasing demand for smart gadgets and advanced technologies. In fact, increased desire for convenience through smart gadgets and appliances has fueled the industry’s growth as individuals spent more time locked in at home over the past year.
While a global semiconductor shortage is currently retarding the industry’s growth, the consumer electronics market is nonetheless projected to hit $989.37 billion in 2027, growing at a 5.3% CAGR from its 2020 level. With increasing the penetration of Internet of Things (IoT) and continued roll out of 5G networks, the demand for high-end smartphones, tablets, laptops is expected to continue rising.
Because people are expected to continue with digital lifestyles and equip their homes with convenient-to-use devices and smart appliances, the consumer electronics industry is expected to keep growing. As such, we think consumer electronics giants Apple Inc. (NASDAQ:AAPL), Sony Corporation (SONY), LG Display Co . Ltd (LPL), and Sonos, Inc. (SONO) are well positioned to deliver significant returns in the second half of the year.