A strong consumer influence, due to the increasing levels of per capita disposable income has supported the growth of the electric guitar market, at a significant rate. The electric guitar market is highly sensitive to regional and global economic crisis. The increasing disposable income and growing interest of people in music are of the key drivers for the growth of the electric guitar market. The increasing number of musical bands is further expected to propel the electrical guitar market, during the forecast period. A highly skilled and trained labor is required for adjusting, carving, and assembling of electric guitars; which leads to high wages and capital requirements for the electric guitar manufacturing industries.

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The electric guitar market can be categorized on the basis of type, tailpiece, neck shapes, and region. On the basis of type, the electric guitar market can be categorized, as solid body guitar, hollow body guitars, electric acoustic guitar, the seven string guitar, semi-acoustic guitar, chambered bodies guitar, and the twelve string electric guitar. On the basis of tailpiece systems, the electric guitar market can be categorized, as vibrato arms, hard tail, string-through body, and floating tailpiece. The electric guitar market can also be categorized, on the basis of neck shapes, as folding neck, V necks, C necks, and U necks. Rock and other music bands use two types of electric guitars, namely rhythm guitar, and lead guitar. Rhythm guitar offers progression or chord sequence, and sets out the beat; whereas the lead guitar is used in melodic instrumental fill passages, melody lines, and guitar solos.
The electric guitar uses a pickup to translate the vibration of cords into electrical pulses, with the principle of direct electromagnetic induction. The signal is amplified before its transmission to loud speaker, as the signal produced is too weak to drive a loudspeaker. Since the output of the electric guitar is an electric signal, which could be altered easily by using an electronic circuit, and can also be modified by using several effects, such as distortion and reverb.
The creation and design of an electric guitar differs significantly, according to the configuration of the bridge, neck and pickups, and shape of the body. The sound of the electric guitar can be customized by playing techniques, such as tapping, string bending, using audio feedback, slide guitar playing, and hammering. The electric guitars contain a spring loaded hinged bridge, which allows the performer to scale-down the pitch, bend notes, perform a vibrato, and chords up. The musical genres, where electric guitars are used include Vietnamese traditional music, Jazz, and jazz fusion, contemporary classical music, and popular music.
The strings on electric guitars are much softer, than that of other guitars, thus making it easy for the guitar players to play. Moreover, it is easier to learn barre chords on electric guitars, due to short width of their neck. One of the major factors behind the high ownership cost associated with electric guitars is the compulsion to buy an amplifier. Electric guitars are generally plugged through a guitar amplifier, as they make less audible sound, when their strings are plucked.

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Some of the competitors in the electric guitar market are Gibson Guitar Corporation, China Joy Guitar Co. Ltd., Paul Reed Smith Guitars Ltd., Fender Musical Instruments Corporation, and Guitar Center Inc.
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