Consumer Electronics Repair And Maintenance Market Expected to Reach $21.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Consumer Electronics Repair And Maintenance Market," The consumer electronics repair and maintenance market size was valued at $15.3 billion in 2021, and consumer electronics repair and maintenance industry is estimated to reach $21.6 billion by 2031, growing at a CAGR of 3.6% from 2022 to 2031.

Service providers in the unorganized sector are often tiny, independently owned businesses with few employees that are primarily found in rural and populated areas. These unorganized sector service providers are widely accessible across the globe. In developing nations, many families there fall into the middle- or lower-income bracket. Customers in the middle-income and lower-income groups sometimes cannot afford the high cost of approved service facilities and instead choose less expensive options available in the unorganized sector. They can be any individual technician, electrician, or service provider who offers on-site assistance, as well as any proprietor of a small mobile repair business. Despite the fact that families' purchasing power is growing, they are unable to invest a significant amount of money in repair and maintenance services. With shifting consumer patterns in smaller cities and towns, unorganized sector service providers have promising chances to grow their clients and strengthen their operations in local markets. Thus, the presence of unorganized sector will hamper the consumer electronics repair and maintenance market growth.

One of the primary drivers for the increase in consumer electronics repair and maintenance market demand is the improvement in the quality repair work by players across the globe. Many new market players are expected to enter the consumer electronics repair and maintenance market over the forecast period, attracted by profitable growth and high-profit margins. The demand for consumer electronics repair and maintenance has seen a multifold increase in the past four years, especially in the developed countries of North America and Europe regions including but not limited to the U.S., Canada, the UK, and Germany. Thus, the high quality along with the increase in service demand are some of the major consumer electronics repair and maintenance market trends.

The consumer electronics repair and maintenance market analysis is done on the basis of equipment type, end-user, service type, and region. Based on equipment type, the market is categorized into mobile, PC, washing machine, refrigerators, and others. According to the end user, it is fragmented into residential and commercial. As per service type, the market is categorized into in-warranty and out-of-warranty. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, and the rest of LAMEA).

By equipment type, mobile garnered largest consumer electronics repair and maintenance market share in 2021 with a CAGR of 2.95%. Globally, the emerging world, including Brazil and India, has the fastest-growing countries. Several countries are becoming more mobile phone-dependent as a result of their continued economic development. The need for service centers is rising as more market participants express interest in making their phones available in these locations. Motorola, Samsung, Apple, BlackBerry, and Microsoft are just a few of the major players in the market. Several market players possess their own mobile phone repair businesses. The mobile service industry is largely organized in developed countries, but there is also an unorganized economy operating in parallel, and the majority of the local consumers cannot afford the pricey accessories that are offered in the companies' official service centers.

By end user, the residential segment was the highest revenue contributor accounting for 67.78% market share in 2021. Consumer spending on household goods like air conditioners and washing machines has increased as the standard of life has improved. This has led to a greater need for service stations. Although there are a lot of unorganized service providers in developed regions, approved service centers are more common in developed countries. Many market players have been expanding their service centers in tier 2 and tier 3 cities because their customer bases are expanding in these cities. In addition, the middle-income group is becoming more dependent on appliances like air conditioning, washing machines, computers, and mobile phones, which makes service stations an absolute necessity.

By service type, the out-of-warranty segment was the highest revenue contributor accounting for more than 90% market share in 2021. Even while products like mobile phones, laptops, and air conditioners normally have warranties of two to three years, consumer electronics are typically used for longer than two years. A product's lifespan might vary from one to ten years, depending on the brand and the type of product. As a result, a product usually outlives its warranty and needs further upkeep and repairs. These services are provided by either licenced service centers or unlicensed individual service providers. In developing economies, there are a large number of unorganized independent service providers due to the increasing usage of these products in smaller cities. Unorganized service providers have a substantial market share in these countries because they provide services at inexpensive costs. In the U.S., the regulated market is dominated by organized players, and even after a product's warranty has expired, the majority of customers still go to authorized servicing facilities. On the other hand, the unorganized sector rules the markets in Brazil and India where tiny business owners provide services for less money. Because of this, the markets in Brazil and India offer lucrative opportunities for the established market players to cut the cost of their services in order to compete with the local independent service providers.

By region, Europe holds the largest share of 33.26% in 2021 and is expected to grow at a CAGR of 2.28% during the review period. Consumer spending on online or e-commerce for consumer electronics such as PCs, mobile phones, washing machines, and kitchen appliances is predicted to increase, driving the demand for consumer electronics repair and maintenance. The market for consumer electronics repair and maintenance will therefore expand as a result of rising consumer expenditure on electronics and the need for maintenance and repair to keep the items functional. In addition, the market for consumer electronics repair and maintenance will be fueled by the expanding market for reconditioned gadgets and their accessibility. For instance, Refurbed, a European marketplace for secondhand electronics, offers reconditioned gadgets that are stylish and modern. Companies that sell refurbished electronics include Back Market, Swappa, and Amazon Renew.

Key findings of the study

• By equipment type, the mobile segment is anticipated to grow at a CAGR of 2.95% during the forecast period. 
• By end user, the commercial segment is estimated to witness significant growth, registering a CAGR of 4.55% during the forecast period. 
• By service type, the in-warranty segment is estimated to witness a significant growth rate, registering a CAGR of 4.53% during the forecast period.
• By region, Europe was the dominant region in 2021, occupying a major share of the market.