BMI View: Although macroeconomic challenges will continue to be a drag on the consumer electronics devices market in Hungary in 2016, we envisage a much stronger growth trajectory from 2017 , enabled by significant appreciation of the forint against the US dollar. We forecast device spending will increase at a CAGR of 6.7 % throughout 2016-2020 to USD 2.2 bn , as households make purchasing power gains. This should unlock pent-up replacement spending from 2015-2016, and also has upside for average device prices in global currency terms as affordability in local currency terms increases throughout 2017-2019.
Latest Updates And Industry Developments
Computer Hardware Sales: USD646mn in 2016 to USD867mn in 2020, a compound annual growth rate (CAGR) of 7.6%. There is pent-up replacement spending waiting to be unlocked, which should occur from 2017 and boost retail PC spending, but potential cannibalisation of notebook and tablet sales by increasingly powerful smartphones presents downside.
AV Sales: USD374mn in 2016 to USD463mn in 2020, a CAGR of 5.5% 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, especially ahead of major sporting events.
Handset Sales: USD690mn in 2016 to USD891mn in 2020, a CAGR of 6.6% in US dollar terms. A diminished pool of potential first-time smartphone buyers will see volume growth slow over the medium term, but there is potential for vendor gains through flagship device sales and overall higher average selling prices in USD terms.
|Forint Appreciation Forecast To Reverse Device Demand Squeeze From 2017|
|Hungary Household Income Breakdown (2014-2020)|
|e/f = BMI estimate/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.