New reports have been released that shows us how the demand for repair service is going to grow up to 1.6% per year until 2025.
Consumers to Spend More on Repairs
US personal consumption expenditures (PCE) on repair services is forecast to advance 3.2% yearly in nominal dollars through 2025, according to Repair Services: United States, a report recently released by Freedonia Focus Reports. Increasing integration of electronic components into monolithic assemblies means more components must be replaced during repair, propelling gains in excess of growth in activity. Rising disposable personal income levels will support spending on repairs, as well as the purchase of new warranty-bearing products. Furthermore, consumers are expected to spend more vigorously on high-end electronic products, especially tablet computers, media devices, smartphones, and televisions containing advanced technologies that require professional repair services should they break. Such sales boost warranty coverage rates and, therefore, consumer likelihood to initiate a service call. Even so, the increasingly disposable nature of consumer electronics and appliances will undermine gains. Also, a surge in replacement of many items in 2020 and 2021 will lower the average age of the US appliance, electronics, and furniture stock, leading to fewer repairs needed.
2020 Levels to Be Beaten
Consumer spending on nominal repair services in 2021 is expected to expand 9.7% over 2020 levels. Real (inflation-adjusted) spending is forecast to grow 5.3%. Snarled supply chains are generating longer-than-usual wait times for consumers to get new electronics, furniture, and appliances. The logjam will continue pushing consumers into the repair market to get their old items fixed.
These and other key insights are featured in Repair Services: United States. This report forecasts to 2021 and 2025 US repair services personal consumption expenditures (PCE) in nominal and real (inflation-adjusted) US dollars at the consumer level. Total PCE in both nominal and real terms is segmented by type of product serviced in terms of:
audio-visual and information processing equipment
furniture, furnishings, and floor coverings
footwear and leather goods
The Report Details
This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Survey has a sample size of approximately 2,000, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.
More information about the report is available at:
Source: Increasing Integration of Electronic Components to Support Spending on Repair Services (prnewswire.com)