Global CE sales rose 6.3% in 2011, to reach $553bn, in spite of a challenging economic climate, saturation in key product categories such as TV, Cameras, and Home Video equipment, and the impact of floods in Thailand and residual effects of Japan earthquake.
Futuresource forecasts 4% growth in 2012, then a flattening of the market to 1.7% CAGR 2011-2016.
Growth in mature markets has converged on smartphones and tablets, impacting demand for dedicated devices like handheld games, MP3, camcorders and Personal SatNav, as well as conventional mobile PCs. Dedicated e-Readers are bucking the trend, driven by low prices and digital books.
Despite growth from mobile devices, the market in W Europe is contracting overall due to a weak economy and saturation of Flat Panel TV, which accounts for 70% of the traditional ‘brown goods’ CE market.
Without tablets and smartphones, the US market would also be experiencing zero growth.
Emerging Markets continue to grow strongly, offsetting weak demand in Western markets, but again growth is highest in converged mobile devices (smartphones & tablets).
Demand for physical media players (e.g. DVD and Blu-Ray) is being affected by a shift to digital content and connected devices.
DVR is still growing, but 90% still in the Pay-TV operator channel, with some growth in retail. The long term trend is to Cloud-based time-shift i.e. Catch-Up TV and VoD.
Audio is being held up by digital speakers, wireless connectivity and growth in soundbars, but high end vendors are struggling as demand for ‘heavy’ HiFi continues to wane.
The gaming market is contracting as mobile apps take their toll of handheld games and tablets compete for consumer dollars, with a possible long term challenge to consoles coming from games on Connected TV.
The Automotive Infotainment market has recovered from the 2009 recession and is tracking with global vehicle sales and increasing new vehicle system integration, plus a mature car audio aftermarket. The PND (personal navigation device) market is in decline, hit by integrated in-car navigation & smartphones.
