Hainan Expo: Can AI drive the 2023 consumer electronic products market?
Updated 22:57, 07-Apr-2023
Zhao Chenchen
Hainan Expo: Can AI drive the 2023 consumer electronic products market?

While the growing hype around ChatGPT and similar tools has placed artificial intelligence (AI) in the spotlight, consumer-facing technology companies believe that more AI-powered electronics will drive a new form of consumption, a participant of an upcoming expo event in China told CGTN.

The third China International Consumer Products Expo (CICPE), or Hainan Expo will be held from April 10 to 15 in Haikou, the capital of the southern tropical province of Hainan. 

Over 3,100 brands from 65 countries and regions will be present at the event, almost double the number of brands from the year before.

Consumer electronic products will be among the products showcased at the expo as China has a significant share of the global market for smartphones, PCs and smart devices, and the advances in AI have made smart devices more integrated into people's lives.

Can AI drive the 2023 consumer electronics market?

The consumer electronics industry had experienced a period of turmoil in 2022 due to weak downstream demand and the disturbed macro-economy caused by the pandemic. But the introduction of AI chatbots such as ChatGPT and other tools like it is likely to give the market a new kick. 

"Both the AI 2.0 era triggered by ChatGPT and the increasing demand of the post-pandemic era have driven the growth of AI consumer electronics," Zhan Wenyu, the Chief Strategy Officer of iFLYTEK's consumer business group told CGTN.

China's leading intelligent speech and AI company iFLYTEK has participated at the CICPE for two consecutive years and will join this year's expo as well.

According to Zhan, the company's intelligent translator series have experienced a 91 percent increase in sales year-on-year for the period between January and February 16, 2023.

In fact, AI-powered gadgets were the highlight of the 2023 Consumer Electronic Show (CES) held in Las Vegas in January.

"From computational photography and video beauty filters to autonomous driving and intelligent cabins, and then to intelligent conferences and cross-border business, AI has permeated every corner of the consumer electronics sector," Zhan said.

According to a research report by China International Capital Corporation (CICC), the global consumer electronics industry is set to recover in 2023.

The demand for Artificial Intelligence of Things (AIoT) is expected to rebound, with various segments like AR, VR, service robots, energy storage, and intelligent vehicles driving up the business outlook for the consumer electronics industry, said the CICC research.

Zhan added that China's technology products are evolving into higher-quality, personalized, and intelligent ones. Products like foldable screen mobile phones, all-in-one home cleaning robots, and customized peripherals are examples of consumption upgrades in China, and they are some of the fastest-growing sub-markets in their respective categories.

According to data compiled by the International Data Corporation (IDC), a global market intelligence consulting company, the 2022 global smartphone shipment is expected to reach 1.23 billion units, a 9.1 percent decline from 2021. However, the agency also projects China's smartphone market to have a narrower decline of 0.9 percent in 2023 and a potential rebound in 2024.

"China's large and high-end market undoubtedly has great appeal for both domestic and foreign manufacturers," said Zhan. "This market will bring new breakthroughs for global economic recovery."

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