From 2018 to 2022, the electronic equipment repair service market experienced robust growth, with a high Compound Annual Growth Rate (CAGR) of 5.7%. In terms of value, the market surged from US$ 97,460.3 million in 2018 to US$ 121,654.4 million in 2022, indicating significant expansion.
The electronic equipment repair service industry is projected to be augmented by strengthened semiconductor manufacturing. To cite an example, President Joe Biden approved the CHIPS and Science Act of 2022 in August 2022. The purpose of this legislation was to bolster local chip manufacturing. The legislation was backed by a total of US$ 53 billion in funding.
Growing importance of refurbished electronic business is projected to be a principal driver for the industry in focus. HyperXchange, which is a refurbished electronics brand, revealed FY2022 to 2023 growth in businesses. The brand cited that increasing demand for refurbished electronics, mainly mobile phones and laptops has led to business growth.
Over the forecast period, the industry is also projected to witness a surge in concern pertaining to e-waste generation. This is projected to complement the market dynamics in the following years.
Heightened awareness about the role of medical electronics to operate successfully is projected to augment product sales. These are specially designed to find out about health problems. Additionally, they are suitable for imaging systems and medical procedures. Increasing adoption of this equipment is expected to increase the demand for electronic equipment repair services.
In emerging economies, a surge in the execution of production-related incentive schemes and other such conducive policies is projected to augment the market. In line with this, smart electronics manufacturers are also seen concentrating on their footprint expansion.
Business Growth Drivers in the Electronic Equipment Repair Service Market:
- Increasing Adoption of Electronic Devices: With the proliferation of electronic devices in both consumer and industrial sectors, there’s a growing demand for repair services. The more devices in circulation, the higher the likelihood of malfunctions or breakdowns, driving the need for repair services.
- Technological Advancements: As electronic devices become more sophisticated, repair services require specialized knowledge and skills. This creates opportunities for repair businesses to offer high-value services for complex repairs, driving growth in the market.
- Environmental Awareness: There’s a growing trend towards sustainability and reducing electronic waste. Repairing electronic devices instead of replacing them aligns with this trend, leading to increased demand for repair services and contributing to market growth.
- Cost Savings: Repairing electronic equipment is often more cost-effective than replacing it with new devices, especially for businesses or individuals looking to extend the lifespan of expensive equipment. This cost-saving aspect drives demand for repair services.
- Regulatory Changes: Regulatory initiatives promoting repairability and product longevity, such as Right to Repair legislation, can stimulate growth in the repair service market by providing consumers with more options for repairing their devices rather than replacing them.
Industry Restraints in the Electronic Equipment Repair Service Market:
- Rapid Technological Obsolescence: Constant advancements in technology can render older electronic devices obsolete quickly, reducing the demand for repair services for certain types of equipment and limiting growth opportunities.
- Lack of Manufacturer Support: Some manufacturers design products in ways that make them difficult to repair, either by using proprietary components or restricting access to repair manuals and parts. This lack of support can hinder the effectiveness of repair services and limit market growth.
- DIY Repair Trends: The availability of online tutorials and DIY repair kits has empowered some consumers to attempt repairs themselves instead of seeking professional repair services. This trend can reduce the demand for repair services and pose a challenge to businesses in the industry.
- Competitive Landscape: The electronic equipment repair service market can be highly competitive, with numerous independent repair businesses and authorized service providers vying for market share. Intense competition can put pressure on pricing and margins, impacting profitability and hindering growth.
- Global Supply Chain Disruptions: Events such as natural disasters, geopolitical tensions, or pandemics can disrupt the global supply chain, leading to shortages of repair parts and components. These disruptions can hamper the ability of repair businesses to fulfill customer demands and limit market growth.
Top Highlights from the FMI’s Analysis of Electronic Equipment Repair Service Market:
- Europe is projected to account for a prominent market share, gaining a sizeable 27.7% market share in 2022. Within the region, Germany enjoyed a 7.8% market share in 2022. The United States is projected to expand at 6.1% CAGR over the forecast period.
- North America follows after Europe, clinching a market share of 23.5% in 2022. The United States reported a 19.4% market share in the same year.
- The Asia Pacific is reckoned to expand at a robust pace. FMI has estimated China and India to attain a CAGR of 11.8% and 10.5%, respectively.
- On the basis of end use, the residential segment is projected to grab a total of 61.2% market share.
- Based on product type, consumer electronics is anticipated to hold a 76.3% market share over the estimated timeline.
Glad Tidings: A Closer Look at the Key Developments in Electronic Equipment Repair Service Market
- In March 2023, European Union proposed a new rule, forcing companies to repair old products for up to 10 years of the product’s lifecycle. The new rule is going to empower consumers with the right to repair. Heavy electronics also fall under this rule, including television, and washing machine, etc. Consumers can get it repaired by the company even after the sales guarantee expiry.
- In April 2023, Mobile Tech Lab announced that it is going to focus on repair, not replacement. The Manitoba-based tech retailer is going to repair various consumer electronics including tablets, computers, televisions, etc.
- LG Electronics gave permission to Dayton Appliance Parts (DAP) to circulate LG repair parts from DAP’s site in three states in August 2022.
- In November 2020, the European Parliament voted for a new policy to introduce compulsory labeling for electronics with repairability ratings. This initiative aims to boost consumer confidence while shopping for electronics and electricals. France announced that it is going to observe repairability tags for laptops, smartphones, and other electronics.
Complete Market Review: A Full Report Analysis
Key Segments
By Product Type:
- Consumer Electronics
- Computer Related Products
- Others
By End Use:
- Residential
- Industrial or Commercial
By Region:
- North America
- South America
- Europe
- Asia Pacific
- The Middle East & Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of ~400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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