Israel has one of the most developed consumer electronics markets in the Middle East, albeitone trailing the ultra-affluent Gulf States in terms of per capita spending. As a mature market, volumegrowth potential is fairly subdued due to saturation, leaving vendors focused on replacement purchases,though there is some upside due to supportive demographic trends in Israel. The main upside is thepotential emergence of new mass market device categories, such as AR/VR. Downside is posed mainly bythe cannibalisation of device use cases by smartphones.
Latest Updates And Industry Developments
Computer Hardware Sales: USD1.1bn in 2017 to USD1.2bn in 2021, corresponding to a compoundannual growth rate (CAGR) of 0.7% in US dollar terms. There is a squeeze on the PC market due tosmartphones cannibalising tablet use cases, but demographics and high-end enterprise and retail demandwill provide support.
AV Sales: USD603mn in 2017 to USD672mn in 2021, at a CAGR of 2.7%. High-end video and audiodevice spending such as wireless speaker systems and Ultra-HD TV sets will be areas of strength, whilenew devices such as VR/AR offer upside potential.