BMI View: Our Hungary Country Risk team forecasts significant forint appreciation against the dollar over 2016-2020, which supports our forecast for a consumer electronics device spending CAGR of 7.7% to USD2.3bn. Growth will be more modest in local currency terms, but by either measure we anticipate a marked improvement in performance over t he medium- term when compared to recent years when first domestic economic malaise and then forint depreciation against the US dollar were drags on demand. I ncrease s in household purchasing power offer upside through reduced price sensitivity , as well as the potential to unlock deferred purchases from 2013-2016 . There is however still downside, with Hungary's economy potentially susceptible to shocks from global headwinds, and regional or national political risks.
Latest Updates And Industry Developments
Computer Hardware Sales: USD652mn in 2016 to USD925mn in 2020, a compound annual growth rate (CAGR) of 9.1%. After forint depreciation there is pent-up upgrade demand, which should be unlocked as household purchasing power growth accelerates from 2017.
AV Sales: USD367mn in 2016 to USD499mn in 2020, a CAGR of 8.0% in US dollar terms. The market will not return to previous peak at height of flat-panel TV set and digital camera boom, but smart TV and Ultra-HD set upgrades will boost the market over the medium term.
Handset Sales: USD706mn in 2016 to USD899mn in 2020, a CAGR of 6.2% in US dollar terms. Positive impact of forint appreciation will be countered by the depletion of the smartphone upgrade engine, resulting in the handset segment underperforming the growth trend prior to 2014 during the initial smartphone boom.
|As Economy Turns A Corner, So Will Device Demand|
|Hungary Household Income Breakdown (2016-2020)|
|f = BMI forecast. Source: BMI, National Sources|
The Hungary 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 Hungary.
BMI Research's Hungary 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 Hungary.
- Benchmark BMI's independent consumer electronics industry forecasts for Hungary to test other views - a key input for successful budgeting and strategic business planning in the Hungarian consumer electronics market.
- Target business opportunities and risks in Hungary 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.