BMI View: Hong Kong is a high- value consumer electronics devices market, based on the high incomes of local consumers and the important contribution from visitor spending. The outlook is however negative because of a saturated devices market for local consumers and the decline in visitor spending as the price difference to mainland China for important product categories such as smartphones has reduced. We forecast total device spending will contract a t a CAGR of 1.5% over 2016-2020. T he upside to this outlook is if a new product category such as wearables or virtual reality gains mass market status but that is not our core scenario and so we believe the boom years have passed.
Latest Updates & Industry Developments
Computer Hardware Sales: USD1.3bn in 2016 to USD1.2bn in 2020. A saturated PC market and some tablet demand cannibalisation by smartphones at the margins combine for a negative outlook.
AV Sales: USD1.2bn in 2016 to USD1.1bn in 2020. Demand will stabilise after steep declines 2011-2015, but with TV set spending based on replacement demand and a continued drag from digital camera volume cannibalisation we forecast mild contraction.
Handset Sales: USD2.3bn in 2016 to USD2.1bn in 2020. Hong Kong is a saturated smartphone market and, with a decline in visitor spending, we expect contraction to occur over 2016-2020.
|Device Saturation Behind Weak Outlook|
|Consumer Electronics Forecast By Segment|
|f = BMI 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.