BMI View: Our core scenario is for consumer electronics device spending to remain flat over the medium term in Hong Kong , with a CAGR of -0.1% forecast over 2016-2020. The domestic market is saturated across all core product categories, and we do not currently see any mass market upgrade triggers, though are watching the wearables category closely for vendor innovation and pricing strategies that could drive sales growth. There is , however , also downside for spending in Hong Kong should economic trends in China either derail domestic growth or result in a contraction in the number of mainland visitors shopping for devices in Hong Kong.
Latest Updates And Industry Developments
Computer Hardware Sales: USD1.2bn in 2016 to USD1.2bn in 2020. A stable outlook, reflecting the maturity of the market, but downside risks remain should increasingly powerful smartphones cannibalise PC replacement spending.
AV Sales: USD944mn in 2016 to USD973mn in 2020. After three successive annual contractions, smart and UHD TV set upgrades will return the segment to growth but even by 2020 it will be below the value peak from 2012.
Handset Sales: USD3.1bn in 2016 to USD3.0bn in 2020. Apple's move into phablets boosted performance in 2015, but over the medium term the depleted pool of potential smartphone upgrades means the outlook is much weaker.
|Subdued Outlook As Maturity Limits Growth Potential|
|Consumer Electronics Forecast By Segment|
|f = forecast. Source: BMI|
The Hong Kong Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in Hong Kong.
BMI Research's Hong Kong Consumer Electronics Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the consumer electronics industry in Hong Kong.
- Benchmark BMI's independent consumer electronics industry forecasts for Hong Kong to test other views - a key input for successful budgeting and strategic business planning in the Hong Kong consumer electronics market.
- Target business opportunities and risks in Hong Kong through our reviews of latest industry trends and major deals, projects and investments.
- Exploit the latest competitive intelligence with company SWOT analyses.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering consumer electronics, major investments and projects.
Consumer Electronics Market
Analysis of the size of the domestic market for electronics products, with in-depth assessment and data covering the dynamics driving each sub-sector; audio-visual, computers, mobile phone handsets and gaming devices, as well as demand for automotives electronics.
Analysis and data of the domestic electronics manufacturing sector. We assess the regulatory and business operational issues facing manufacturers - including openness to foreign investment, infrastructure, IP issues and the global demand context - and their impact on the production of electronics goods, which is again broken down via market sub-sectors.
Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key risks to the main forecast, covering computers, communications and gaming devices. Indicators include:
Industry value (US$bn); population (mn); nominal GDP (US$bn); real GDP growth (%), GDP per capita, industrial production Index (% y-o-y ave.) unemployment % of labour force.
Business Environment Rankings
BMI's Consumer Electronics Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors and participants in the regional consumer electronics market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.