China's Digital Electronics Market: What Defined 2024

Executive Summary#

China's digital electronics market in 2024 was shaped by new product forms and by policy support. OWS earphones grew 164.3% on a leading Chinese marketplace and became the main source of growth in audio wearables, and the national "trade-in" subsidy lifted sales of major appliances in the final quarter of the year. AI integration remained at an early stage in most categories, with learning machines the clear exception at 46.4% AI penetration. This analysis sets out the trends that defined the year, drawing on our whitepaper, which covers six consumption scenarios.

New Earphone Forms Gain Ground in Audio Wearables#

2024 marked a turning point for wearable audio, as sales of OWS (Open Wearable Stereo) earphones grew 164.3% on a leading Chinese marketplace, making them the category that drove most of the growth in audio wearables. Their open-ear design appealed to consumers who want to stay aware of their surroundings while they exercise or commute.

TWS earphones, by contrast, have become a more commoditised category in which products priced below CN¥ 100 now account for 60% of the market, while Apple and Huawei have kept premium prices by drawing on the ecosystems built around their smartphones. Screen earphones, a new form factor that is still at an exploratory stage, grew 315.4% on the same two marketplaces.

We believe these patterns show consumers moving away from established categories and toward new forms of earphone that offer them a different experience.

Upgrade Cycles and the Trade-in Subsidy Lift Phones and Appliances#

On two leading Chinese marketplaces, mobile phone sales grew 23.8% in 2024 as consumers upgraded to new flagship models, hardware and tools grew 42.2%, and major appliances grew 19.8% with the help of the trade-in subsidy.

China's national "trade-in" subsidy programme, implemented in August 2024, produced a clear rebound in home appliance sales in the fourth quarter, and on those two marketplaces air conditioners grew 25.8%, refrigerators 20.5% and washing machines 26.0% over the year. The effect of the subsidy was concentrated on major appliances that households replace out of necessity, and small appliances benefited from it far less.

In the smart home segment, sales of robot vacuums on a leading content-led marketplace grew 193.1% and sales of floor washers grew 115.8%, as a new generation of products reached consumers through live commerce demonstrations.

AI Integration: Promise Exceeds Penetration#

Although social media discussion of AI reached 120 million posts and 14.76 billion interactions over the past year, the share of AI products in mainstream e-commerce categories remains below 5% for most segments, and the education sector is the main exception:

• Learning machines: CN¥ 15.4 billion with 46.4% AI penetration
• Smart speakers: CN¥ 2.54 billion at 40.6% penetration
• Smart reading pens: CN¥ 4.12 billion at 20.5% penetration

The emergence of DeepSeek in early 2025 has renewed interest in bringing AI into electronics, particularly in smart TVs and educational devices. Wireless mice showed early adoption of AI at 4.7% penetration, and iFLYTEK (科大讯飞) is among the brands developing AI-powered features for office productivity.

What to Watch in 2025#

Two dynamics will shape the digital electronics market in the year ahead:

• Audio fragmentation: OWS earphones and screen earphones will take further share from TWS earphones, while bone conduction headphones face a structural decline
• AI integration acceleration: the spread of DeepSeek into mainstream use and continued government support for AI-powered education devices will speed the move from AI as a marketing claim to AI as a core feature

About the Data#

This analysis draws on Moojing Market Intelligence's proprietary e-commerce database and covers full-year 2024 transaction data from three leading Chinese marketplaces, one of them content-led. Sales revenue and volume figures are based on actual marketplace transaction records, and growth rates are calculated year on year using consistent category definitions. For the complete methodology and category-level data across 126 charts, download the full whitepaper.^[1]

China's digital electronics market reflects broader macroeconomic policy, including the national "trade-in" subsidy programme launched in August 2024 under the State Council's guidelines for promoting large-scale equipment renewal and consumer goods trade-ins.^[2]