BMI View: While currency depreciation and wider economic uncertainty have impacted our headline market forecasts, we maintain a positive medium-term outlook on the sector. This hinges on an anticipated rise in household income, which will offset losses in sales volume with gains in value, and will create a key opportunity for vendors to target the expanding premium market. That said, a hard landing in China remains a downside risk to our outlook.
Latest Updates & Industry Developments
Computer Hardware Sales: USD82.2bn in 2017 to USD98.1bn in 2021, a compound annual growth rate (CAGR) of 3.8% in US dollar terms. Market maturity means growth will be slower than the decade to 2013, but rising incomes pose an upside for vendors to focus on higher price and margin PCs in the retail market.
AV Sales: USD29.0bn in 2017 to USD32.1bn in 2021, a CAGR of 2.2%. The AV segment is expected to underperform as digital camera and mp3 demand continues to fall, but smart and Ultra-HD TV sets will provide a more positive upgrade dynamic for the largest component of the market.