Despite the ongoing growth trends spurred by Artificial Intelligence in areas like film, music, smart headphones, and smart glasses, overall sales in consumer electronics, including televisions, audio equipment, and digital cameras, continue to decline slightly. According to a new study by the IT industry association Bitkom, the market for consumer electronics is projected by Bitkom’s current forecasts to shrink by 2.4 percent this year, falling from 7.8 billion to 7.6 billion euros. This marks the sixth consecutive year of revenue decrease following the surge to 9.3 billion euros during the COVID-19 pandemic.
Among the major segments, flat-screen TVs remain the dominant part of the market, accounting for 2.81 billion euros. However, these devices are also experiencing a drop in sales of 3.5 percent compared to the previous year. Gaming consoles are expected to generate 840 million euros, a 9 percent reduction from an unusually strong year before. Similarly, the audio equipment market is forecast to be down 4 percent, reaching 870 million euros. Other consumer technologies, such as Blu-ray and DVD players, media sticks, set-top boxes, or interchangeable lenses, are expected to see a slight dip of 0.5 percent, totaling 810 million euros.
Conversely, audio and video accessories, as well as digital cameras, are showing slight increases this year. Sales of audio and video accessories are projected to reach 1.71 billion euros, marking a 1.9 percent rise. Digital cameras are growing after a multi-year downward trend, expected to reach 580 million euros in 2026, representing a 2 percent increase.
Regarding viewing habits, the study, based on a survey of around 1,100 people aged 16 and over, shows that consumers continue to use all available methods for watching videos or broadcasts. While video streaming previously edged out traditional TV in a single-channel comparison, the gap is widening. Currently, 81 percent of Germans aged 16 and over still watch current programming via cable, satellite, or antenna, whereas 89 percent now stream videos, broadcasts, or films over the internet. Age is a significant factor: only among individuals over 65 does traditional television (94 percent) remain ahead of video streaming (68 percent).
Video streaming often requires a subscription fee for the majority of users. Sixty-one percent of those who use video streaming pay for it: 46 percent opt for single, paid-for movie rentals, averaging 12.80 euros per month (11 euros in 2025). Another 44 percent use paid subscription services, paying an average of 18.50 euros per month (17.50 euros in 2025). However, new ad-supported subscription models are facing resistance, with 59 percent finding it disruptive to have to pay more just to avoid advertisements. Furthermore, 17 percent have engaged in “subscription hopping,” meaning they sign up for a subscription for specific content and immediately cancel.
Audio stream popularity is also increasing. Currently, 88 percent of Germans stream audio content sometimes or often. Video platforms are the most popular source for audio, used by 69 percent, followed by dedicated audio streaming services at 63 percent. Nevertheless, traditional radio remains stable at 91 percent, slightly ahead of audio streaming via a classic connection.
In the audio sector, AI is influencing change. Forty-four percent of Germans expect that a large portion of music will be generated by AI within the next ten years. Three-quarters (75 percent) view AI as a threat to the traditional music industry. Moreover, 58 percent believe AI-generated music should be excluded from official charts, and roughly a third (35 percent) even suggest that audio streaming services should completely block AI-generated music. On the other hand, 24 percent would be fine with AI-generated music winning significant awards, such as a Grammy.
