Industry research
Scope
Europe
Companies
151
Table of contents
What does the consumer electronics and appliances market landscape look like in Europe?
The broader European manufacturing market is relatively fragmented, with several (local) champions per product segment. The retail landscape has a more consolidated nature and comprises several industry giants (e.g. Amazon, CECONOMY) that operate on a pan-European scale, while local champions account for the remainder of the market. From a manufacturing point of view, European players only play a significant role in the white goods space, as consumer electronics are dominated by Asian and American manufacturers. Despite the apparent need to reach a critical size to maintain or improve profitability, M&A activity among retailers has been low. This is due to thin bottom-line margins and their focus on developing omnichannel strategies while improving in-store experiences.
What is the level of investor activity in Europe's consumer electronics and appliances industry?
Sponsor-led interest has been present but moderate, with ~34% of identified assets being backed by a financial sponsor (as of May 2025). We see that the re-commerce segment has received the most investor-led interest, backed by the ongoing sustainability megatrend and expected industry growth prospects. The physical retail segment has seen the least sponsor activity due to the asset-heavy nature of its business models. Overall, attracting factors for investors in the European consumer electronics and appliances market include (i) the strong growth prospect of refurbishing services, (ii) the benefits of adopting an omni channel strategy, (iii) the recovery of consumer spending, (iv) improved operations enabled by AI and (v) ample opportunities to acquire small and struggling physical retailers. On the other hand, deterrents comprise (i) the impact of US tariffs on European manufacturers, (ii) global supply chain disruptions, (iii) increasing raw material prices and (iv) the intense price competition among retailers.
What are the key ESG considerations in Europe's consumer electronics and appliances industry?
ESG topics primarily relate to environmental and social issues. The industry's impact on climate change is significant due to the energy-intensive manufacturing and logistics operations as well as the production of e-waste, of which only a portion is being collected and recycled. As such, brands and retailers are increasingly focusing on the recycling and refurbishment of used electronics to limit their environmental impact. Some also source raw materials that are smelted using renewable energy. Potential breaches of human rights throughout the supply chain constitute a key social topic. Mica mining is notorious for the use of child labour. Additionally, working conditions in factories and warehouses are a major concern. In an attempt to mitigate potential human rights breaches, incumbents increasingly audit their suppliers to ensure adherence.
Statista (June 2024) estimates that the global consumer electronics market will generate ~€890.9bn in revenue in 2025 and reach ~€998bn by 2029, registering a +2.9% CAGR over the period
The European consumer electronics market is projected to be valued at ~€62.8bn in 2025 and depict a +5.4% CAGR from 2025 to 2029, growing to ~€77.5bn by 2029 (Statista, July 2024)
AI-powered predictive analytics tools will assess real-time demand for consumer electronics and appliances, improving inventory management through lower costs and lead times and reducing excess stocks for retailers. Herein, AI-enabled forecasting can reduce excess stocks by ~40% (Bain & Company, January 2025)
Declining inflation rates, interest rate cuts and growing real wages in Europe, combined with excess savings accumulated during the COVID-19 pandemic, will provide more demand from consumers for electronics and appliances (Deloitte, January 2025)
The elevated price tags for newer electronic devices with incrementally limited innovation and the increasing number of environmentally conscious individuals will drive up the demand for refurbished electronics (interview by Gain.pro; Recommerce Group, April 2025)
European manufacturers, especially in the high-end audio and appliance product categories, are facing trade wars and tariffs when exporting goods to the US. This development is significantly lowering demand for Europe-made consumer electronics and appliances (Deloitte, January 2025)
The combination of escalating metal material prices and the need to on- or nearshore manufacturing facilities will drive up costs and investment requirements, making it more challenging for players to remain competitive in the short term within an already price-sensitive environment (IPC, April 2025; ING, December 2024; Supply, September 2022)
European retailers are subject to an unfair competitive landscape in which they are being priced out of the market without any EU-wide protectionism measures (interview by Gain.pro). Together with the intensifying competition from large marketplaces (e.g. Amazon) and price comparison websites, retailers are forced to participate in a race to the bottom in terms of price, leading to thinner margins (McKinsey & Company, November 2024)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 151 private companies, incl. financials, ownership details and more.
A view on all 503 deals in the industry
ESG assessments with highlighted ESG outperformers
