Electronic Equipment Repair Service Market Size, Trends 2031

Report Description

The global electronic equipment repair service market size was valued at USD 120.26 Billion in 2022 and is expected to surpass USD 219.24 Billion by 2031, expanding at a CAGR of 6.9% during the forecast period, 2023–2031. 

The global market growth is attributed to the rising demand for consumer electronic devices, the massive availability of old electronic equipment, and increasing equipment failure rates of electronic items in long-term use.

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Electronic equipment repair service refers to a process of conducting official testing and troubleshooting of electronic devices by service providers in case of malfunctioning, equipment failures, and inaccuracy in the operation of such devices.

In general, the majority of the electronic equipment manufacturing companies have their own repair service center and offer usually 1-5 years warranty period for free-repair service for different types of products. Upon the expiry of the warranty, users have to pay for repair services for their devices.

The market is largely driven by the rising equipment failure rates of those out-of-warranty devices. Electronic repair service is widely applicable for equipment testing across different types of product categories such as consumer electronics, home appliances, medical equipment, and industrial equipment.

The rising dependence on electronic gadgets and industrial equipment for personal assistance and professional applications presents a key reason for the massive sales volume of consumer electronics such as mobile phones, computers, TV sets, communication equipment, and other electronic appliances. As the global consumption of electronic items increases, the rate of malfunctioning of these devices is also increasing, which is projected to spur the overall market expansion.

The rapid expansion of the electronic equipment repair service market is further influenced by the growing demand for reconditioned/refurbished consumer electronic items and the increasing governments’ concerns regarding electronic waste. As per the report by Statista, the volume of global electronic waste reached more than 53 million metric tons in 2019 and Asia was responsible for nearly half of the total waste worldwide.

Although the current rate of e-waste recycling is relatively low, the rising market value for using recycled electronic materials in the manufacturing of consumer electronic devices is expected to propel the overall market growth. With the huge growth potential, the global electronics recycling market size is projected to reach USD 65.5 billion by 2026 from USD 39.7 billion in 2021.

With the current market trend, the US reconditioned consumer electronics market size is expected to surpass USD 18.2 billion in 2022 with the leading revenue share from the electronic and computer repair service segment. The rapid growth of the electronic industry, influenced by the wave of industrial automation, and the presence of large smartphone users especially in developing countries play a crucial role in the market expansion.

COVID-19 Impact on Electronic Equipment Repair Service Market

The market report finds the COVID-19 healthcare crisis had affected the global electronic equipment repair service market due to the prolonged shutdown of repairing service centers, imposed by governments’ emergency lockdowns.

Governments across the globe, as a policy to curb the virus spread, deployed several preventive measures such as social distancing and movement restrictions that resulted in the lack of availability of skilled technicians or laborers. This factor posed a major threat to the market growth during the pandemic.

However, the sales of consumer electronic items, especially laptops and computers increased significantly during the pandemic as the work-from-home (WFH) policy was widely implemented across business organizations. Rising dependence on electronic communication equipment, as a part of the reorganization of working styles across businesses, opened up several growth opportunities for the market in the coming years.

As per an article published on February 17, 2022, by Deloitte Insights, the sales of consumer electronics, especially computers and TV sets increased considerably during the beginning three years of the pandemic. The report claimed that computer sales gained 34% and TV sets gained 12% during the three years.

With the sharp decline in the global coronavirus cases, several electronic equipment repair service centers are resuming their normal operations and the surge in electronic device sales during the pandemic is likely to fuel the overall market expansion in the near future.

Electronic Equipment Repair Service Market Dynamics

The research report presents a complete market outlook and overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global electronic equipment repair service market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.
 

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Key Trends 

Rising establishment of self-own repair service centers is one of the key trends that can boost the market in the coming years. Electronic equipment manufacturers are increasingly engaged in the establishment of self-own repairing centers to reduce the overall repairing service cost while providing warranty repair service for customers.

Many of these electronic manufacturing companies have already entered into long-term collaborations with several companies providing industrial equipment and medical electronic device repair services to ensure cost-saving operations for customers. The rising demand for medical equipment maintenance and repair services presents a key market trend that leads to increasing competition among players to expand their repair services to several hospitals and clinics.

Major Drivers

Electronic devices are mostly delicate items, which are at high risk of malfunctioning, product damage, and failure if users do not handle these devices with care. The high equipment failure rates and the rising cases of product damage, especially in consumer electronic equipment present a key factor driving the market.

Moreover, the massive use of advanced electronic devices for industrial and medical use to enhance their production and operations increases the rate of device failures, which further boosts the market. Repairing service is a better option and cost-benefit method for end-users using such expensive devices rather than replacing their obsolete devices. 

The surge in refurbished electronic equipment sales in developed countries is widely influenced by the growing awareness regarding the cost-efficient electronic items among customers and the wide availability of refurbished smartphones, desktops, and computers on online platforms.

Moreover, the rapid growth in smartphones and consumer electronic repairing service centers along with the increasing availability of skilled professionals, especially in developed countries further fuels the market.

Existing Restraints

Rapid development of innovative electronic devices equipped with advanced features and technology attracts customers to replace their obsolete and old equipment with new models. With technological advancements, major electronic device manufacturers are able to introduce a series of new electronic equipment with innovative features to make devices user-friendly and operation efficient.

With the rising disposable income of a large number of the working population worldwide, the average consumer electronics spending on new consumer electronics has been significantly rising over recent years. As a result, high-income earning customers mostly prefer to buy new electronic equipment rather than spend on repair costs. Moreover, the repairing cost for some expensive electronic equipment sometimes comes with a high price that encouraged customers to buy new devices.

Emerging Opportunities 

Focusing on environmental concerns, governments across several major economies started implementing various initiatives to encourage electronic equipment manufacturers for adopting e-waste management solutions strictly. Such government policies are likely to push the manufacturers to focus on the expansion of their operation on recycled electronic materials and refurbished electronic devices.

Rising demand for refurbished consumer electronics such as laptops, mobile phones, and computer desktops, especially in major economies presents another major factor offering several lucrative growth opportunities for the market.

Scope of Electronic Equipment Repair Service Market Report

The report on the global electronic equipment repair service market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Electronic Equipment Repair Service Market Segment Insights

Product Types Segment Analysis

On the basis of product types, the global electronic equipment repair service market is segmented into home appliances, consumer electronics, industrial equipment, and medical equipment. The home appliances segment is further divided into air conditioners, washing machines, microwaves, refrigerators, and others.

The consumer electronics segment is sub-classified as notebooks & laptops, tablets, smartphones & mobile phones, televisions, and others. The industrial equipment has sub-segments including machinery, motors & generators, voltmeters, pulse & signal generators, laser equipment, frequency counters, and others.

The medical equipment is further categorized as ventilators, dental clinic equipment, medical monitors, CT scanners, lab equipment, and others. The consumer electronics repair segment held a dominant market share in 2021 and is projected to expand at a CAGR of 6.9% during the forecast period owing to the wide use of notebooks & laptops, tablets, and smartphones & mobile phones for various personal assistant- and office-related applications.

The massive use of TV sets as an essential item of every household and the rapid introduction of various innovative features in such new products, which are available at affordable prices drives the segment growth.

The wide availability of refurbished electronic devices presents another major aspect for the segment growth as more customers can afford their choice of gadgets and electronic equipment, impacted by the lesser cost of refurbished items. With the surge in demand for consumer electronic equipment, the global consumer electronics market was worth around USD 1 trillion in 2021 due to the massive demand for telephony items and computing equipment worldwide.

Services Segment Analysis

In terms of services, the global market is bifurcated into in-warranty and out-of-warranty. The out-of-warranty segment constituted a sizable share of the global electronic equipment repair service market in 2021 and is projected to register a high CAGR during the forecast period owing to the increasing demand for electronic device repair services with out-of-warranty.

The cases of device malfunctioning, partially broken, and failures are frequently occurred in old equipment, especially those electronic devices with an expired warranty. Repair services are often needed for those out-of-warranty devices, especially medical equipment as these are expensive gadgets, which are not possible to replace with every new equipment.

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End-users Segment Analysis

Based on end-users, the global electronic equipment repair service market is bifurcated into commercial & industrial and residential. The residential segment constituted a sizeable market share in 2021 and is anticipated to expand at a robust growth rate during the projected period owing to the wide use of consumer electronic items in residential spaces.

A range of consumer electronic products such as refrigerators, TV sets, radios, smart speakers, smartphones, and telephones are commonly used for entertainment as well as communication purposes in residential areas. Moreover, the rising construction of residential buildings to meet the increasing demand from the growing population globally further fuels the segment growth.

The residential use of electronic equipment is significantly rising in Asia Pacific with the massive demand for residential spaces in emerging economies including China and India. With the rising rate of segment growth, the residential electronic equipment market size in China is projected to reach USD 23.4 billion by 2030.

The commercial & industrial segment is expected to expand at a steady growth rate in the coming years owing to the current market trend of industrial automation across the manufacturing, construction, and aviation sectors. The surge in the use of electronic equipment across industries is largely impacted by the increasing demand for innovative digital and automation solutions to enhance the production level and increase the efficiency of overall business operations.

Among commercial sectors, the healthcare sector is one of the major consumers of electronic equipment and a range of advanced medical equipment used in hospitals and clinics such as high-precision equipment is required to be upgraded regularly to provide high accuracy and efficiency in the treatment and diagnosis of patients.

With the rising use of numerous electronic devices across industries, end-users need regular repairing services for their electronic devices due to wide events related to equipment malfunctioning and breakdowns.

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Regional Analysis

In terms of regions, the global market is broadly classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

Asia Pacific accounted for nearly 1/3^rd share of the total market revenue in 2021 and is likely to dominate the market in the coming years owing to the presence of a large pool of consumer electronics users and the massive expansion of the electronic equipment industry, impacted by industrialization.

Moreover, the rapid development of the electronic equipment repair service sector due to the rising number of major regional service providers and several governments’ initiatives encouraging the use of recycled electronic devices further boost the regional market.

The rising consumers’ spending on electronic equipment, majorly influenced by the increasing disposable incomes of a large consumer population, presents another key driver of the market in Asia Pacific. With this current market trend and the rising sales of electronic equipment products, the market size of consumer electronics and appliances in India is expected to reach USD 220 billion by 2030.

The electronic equipment repair service market size of North America was valued at around 13.5 billion in 2021 and is expected to register a CAGR of 6.1% during the forecast period due to the rapid growth of the refurbished market and the massive development of large-scale electronic repairing centers.

Moreover, the presence of a large number of key global players in the region and their offers of several advanced services or facilities such as in-store repair services play crucial roles in the significant expansion of the regional market.

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