Southeast Asian airports set for significant growth in consumer electronics market

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The airport retailing consumer electronics market is expected to expand at a significant pace with global revenues crossing US$1.8bn in 2018, according to a new study.

Market growth has been attributed to a shift in passenger attitudes as airports are increasingly seen as a retail destination as well as a transportation hub.

Independent researcher Fact.MR envisages that prospects for consumer electronics in airports are expected to remain promising, with the airport retailing consumer electronics market to grow at a compound annual growth rate (CAGR) of 6.3%, reaching nearly US$3.4bn in 2028.

The market valuation is likely to remain influenced by the growing number of airports. Sales of consumer electronics in airports are projected to remain concentrated in the Southeast Asian (SEA) countries, making the region a lucrative market for airport retailing consumer electronics.

India is poised to showcase higher market attractiveness in SEA during the forecast period on the back of steady economic development coupled with rising air tourism, according to the study.

India’s lucrativeness in the airport retailing consumer electronics marketplace is attributed to rising number of air passengers.

According to IATA, the air passenger count in India is expected to reach 478 million by 2036. This is expected to present potential opportunities of growth for airport retailing consumer electronics in the coming years.

In addition, sales of airport retailing consumer electronics on departure are likely to be on an upswing compared with sales on arrival in the country. The report forecasts that the sales of airport retailing consumer electronics in India could exceed US$250m by 2028.

Growing sales of accessories are expected to largely contribute to the growth of the airport retailing consumer electronics market, according to the report. Consumer preference for accessories is projected to expand at a higher rate than electronic devices. Against this backdrop, airport retailers are also planning to rent accessories for travelers opting for short trips.

To read more and download Fact.MR’s Airport Retailing Consumer Electronics Market report, click here.

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