Frost & Sullivan: The recovery of consumer electronics in 2025 is imminent, with AI and personalized customization becoming the core drivers

The rapid development of large AI models has played an important role in promoting the AR glasses market, laying a solid foundation for the future market. Global VR/AR device shipments increased from about 5.7 million units in 2019 to about 6.7 million units in 2023, with a compound annual growth rate of 4.1% during this period. AI technology has injected intelligent attributes into AR glasses, greatly enhancing their application capabilities such as voice interaction, image recognition, and real-time scene perception, making them show initial application value in fields such as gaming, education, industry, and healthcare. At the same time, it has promoted consumers' cognitive upgrade and market recognition of smart terminals.

With further maturity of AI technology, the AR glasses market will enter a period of rapid development in the future. Frost & Sullivan expects global VR/AR device shipments to increase from 6.8 million units in 2024 to 23.6 million units in 2028, with a compound annual growth rate of 36.5%. Thanks to the widespread application of large AI models, AR glasses play an important role in scenarios such as real-time translation, dynamic navigation, and remote collaboration. In addition, advancements in hardware technology, reduced production costs, and the popularization of 5G/6G networks also provide strong support for market expansion. In the future, AR glasses are expected to gradually move from specific fields to the consumer market and become an important bridge connecting the physical world and the digital space.

In 2025, the consumer electronics industry is expected to show diversified, intelligent, and personalized development trends. With continuous technological progress and expansion of consumer demand scenarios, the consumer electronics industry is expected to see new growth points. Among them, AI, sustainable development, and personalized customization will become the main driving forces for industry development.

Deep integration of AI: The empowerment of AI to consumer electronics is comprehensive, including upgrades in multiple industry dimensions such as smartphones, wearable devices, and smart homes. AI will drive a significant increase in the computing power of consumer electronics industries and real-time algorithm requirements. Taking AI phones as an example, functions such as voice interaction and control, image processing and editing will drive a new round of demand recovery in the consumer electronics industry. According to IDC data statistics, global AI phone shipments exceeded 51 million units in 2023. The future market has broad development prospects empowered by AI. Frost & Sullivan expects global AI phone shipments to maintain an average annual compound growth rate of over 44% from 2024 to 2028, boosting global mobile phone shipments.

Sustainable development boosts consumer electronics demand: In 2025, with the emphasis and establishment of sustainable development goals (including waste reduction, low carbon, safety, recycling, etc.) for the consumer electronics market, consumers' demand for environmentally friendly products continues to grow. Producers will continue to seek and introduce various new materials to meet market needs for environmental protection and safety. At the same time, new consumer electronics products will pay more attention to energy efficiency while technological progress reduces their impact on the environment.

Personalized customization: Personalized customization will become one of the mainstream trends of consumer electronics products in 2025. Whether it is smartphones, tablets, or wearable devices, they will provide highly flexible customization options, allowing users to freely choose from numerous appearance, material, and function combinations to create a technology product truly belonging to them, thereby improving user satisfaction, enhancing brand loyalty, and boosting the recovery of the consumer electronics industry.