I NEWS IMarket
I NEWS IMarket trendsFuturesource plots the courseand delivers important projectionsTV DISPLAYSThe COVID-19 lockdown actuallybenefited TV sales in many countriesduring H1 as consumers withdrewinto their homes and focusedmore on home entertainment. TVprovided both a source of newsand a distraction from world events.However, the outlook for the rest ofthe year is uncertain at best, with theeconomic impact likely to be severe,even if a feared widespread ‘secondwave’ of the virus does not occur. Inview of this – and the postponementof major sporting events such as theOlympics, Futuresource has loweredits Pre-COVID Global TV marketforecast by 22m units resulting in a7.2% unit decline in 2020 Vs 2019,with a CAGR to 2024 of 2.9%.As part of the premium segment,OLED uptake is likely to be hamperedby the COVID-19 economic impact,as consumers economise. OLEDis forecast to reach 3.4m unitsworldwide in 2020, representing 1.5%of global shipments in 2020, rising tonearly 4% in 2024.With already existing barriers such aslack of content and high prices beingexacerbated by the pandemic, 8KLG-8K-TVshipments are set to reach just 495Kunits for 2020, representing only 0.2%of the market. As manufacturers aimto make the TV the control centre ofthe Smart Home, while improvingthe user experience at home,TV shipments with built-in voicecapability will reach 51.8m units by2024. Most brands however will staywith the “Works with” strategy whichis more cost-effective.4K UHD continues to grow its shareof the TV market; 62% of shipmentsin 2020, as brands continue totransition their ranges from HD inorder to boost ASPs.The trend towards larger screensizes will ensure sales in Europe ofTVs above 40” will fare better thansmaller sizes in the aftermath ofCOVID. Panels between 40” and 69”are forecast to fall by 4% in 2020 anda CAGR to 2024 of 2.9%. However,unit sales of screens of 70” and abovewill increase by 7% this year, with aCAGR to 2024 of 15%Source - FuturesourceThere is probably no better time or placeto track industry market trends than atIFA. This year is no exception, despite thebedlam caused by the Covid-19 crisis.In each edition, IFA International will becovering several areas of importance.In this edition, we look at TV displaysand Wearables / Hearables.WEARABLES/HEARABLESOverall, the wearables marketas a whole is still expected togrow in 2020 despite Covid.The increased consumerawareness around health andwellbeing fits in with the majorUSPs of wearable devices, andfuture product developmentsare expected to expand onthis trend.The emergingecosystem ofconnected deviceswill also become akey source of growthfor wearables. Theinteraction of thesmartwatch andhearable elevates theconsumer proposition ofthese devices; the audioand voice capabilities of thehearable improve on thosecurrently available on the wrist,while the biometric trackingdone in the ear is also of greaterquality in terms of accuracy andreliability.Google’s pending acquisitionof Fitbit, if approved, wouldbe a significant shift in thecompetitive landscape forsmartwatches. Currently, themarket is dominated by Apple,with Samsung and Fitbitfollowing. WearOS deviceshave struggled to attain notablemarket share in wearables, butwith the acquisition of Fitbit,Google will hope to propel itselfinto a competitive position torival Apple. Google are aimingto create an ecosystem thatrivals Apple, with its hearables– the Pixel Buds – a rival tothe Airpods, and wrist-wornwearables are another frontierof this competitive dynamic.Google’s wearables strategywillnot onlyinvolve the continuingdevelopment of WearOS, butwill also likely see the vendorlook to develop its own Pixelwatch as well as continue tosupport the Fitbit brandSource - Futuresource8 IFA INTERNATIONAL • MONDAY 31 ST AUGUST 2020www.ifa-international.org
I EXCLUSIVE INTERVIEW IGFU INSIGHT & TRENDS2020 - “GERMANY INA BALANCING ACTBETWEEN RETHINKINGAND RETURNING TONORMALITY”Kai HillebrandtChairman of the supervisoryboard of gfu Consumer & HomeElectronics, organiser of IFANew blood and new vision forGerman industry associationExclusive Interview - Kai Hillebrandt - Chairman of thesupervisory board of gfu Consumer & Home Electronics,organiser of IFAKai Hillebrandt was recently elected asChairman of the Supervisory Board ofgfu. We asked what his vision is for thefuture of the association.The IFA 2020 Special Edition withits pandemic-related challengesis currently at the top of ouragenda. But we are optimistic ofthe success of this event becauseMesse Berlin has proven to bea well-established and reliablepartner at our side. A major goalfor the future is clearly to continueand further develop the successstory of gfu and IFA togetherwith Messe Berlin. Naturally, theconception of IFA 2021 will also bea key focus very soon.What will you change?Our team at gfu around thenew managing director, Dr SaraWarneke, is in excellent shape. I can absolutelyrely on their strong support and therefore see noneed for change this setup in the future. Sincethe gfu supervisory board will also be composedof three people again by 2021, I am very positiveabout the future of the gfu.A MAJOR GOALFOR THE FUTUREIS CLEARLYTO CONTINUEAND FURTHERDEVELOP THESUCCESS STORYOF GFU AND IFATOGETHER WITHMESSE BERLIN.The Coronavirus is still omnipresent … but inyears to come, what permanent changes willtake place in the industry due to this crisis?Consumers are currently focusing more andmore on their homes and are willing to invest ininnovative technology. You could observe thisduring the lockdown. As a result,demand for both householdappliances, such as productsfor cooking, cleaning and healthcare, as well as home electronicshas risen. For example, theincreased use of home office andhome schooling is reflected inthe very positive development ofthe IT sector. Classic consumerelectronics can also benefit,as is well illustrated by thepositive trend in the TV market.Incidentally, the trend towardslarger and very well-equippedtelevisions is clearly continuinghere. In other words, our industryoffers a large number of technicalproducts that are in increased demand during thecrisis - however, it is difficult to say which of thesecurrent trends will outlast the crisis.Nevertheless, I am convinced that our industrywill continue to hold its position thanks to itsinnovative strengthIn a two-hour programme, differentactors from science, industry andcommerce will explain how they havedealt with the challenges of the Coronaera, what insights they have gained,what solutions have been found andwhat we can all learn from them for thefuture. But consumers also have theirsay. In a large representative study, thegfu surveyed the people of Germanycomprehensively… but not only onCorona virus issues, because whileCorona has long been the definingtheme, there are a number of otheraspects that will shape the consumerand home electronics industries, thetechnology sector, and our lifestyle todayand for the future.ON THE STAGE:Kai Hillebrandt, Chairman of theSupervisory Board of gfu, presents theresults of the latest market study of gfu:“Corona virus impact on the consumerelectronics and home appliancesmarket, digitalisation, and society.”Cornelia Schneider-Pungs, EducationSpecialist, Microsoft: “Germany athome - digital work and learning - whatwill the teaching profession look like inthe future?”Patrick Schmich, Head ofEpidemiological Data and SurveyCentre, Robert Koch Institute: “CoronaApps: Experiences and Results”Marco Bühler, Managing Partner,Beurer GmbH: “Preventive DigitalHealth: Impulses & Future Prospects ina Post-Corona World”Volker Klodwig, Executive VicePresident Sales, BSH HomeAppliances and Supervisory Board ofgfu: “Out of the crisis into the boom:How manufacturers and retailers arestrengthening the new feeling at home”Dirk Wittmer, Managing Partner,Euronics XXL Johann + Wittmer GmbHand Chairman of the SupervisoryBoard Euronics eG: “Corona BestPractice Marketing (making the interneta friend)”2 September 20202pm to 4pm - Hall 3.2IIFA INTERNATIONAL • MONDAY 31 ST AUGUST 2020 9
