BMI View: The Indonesian consumer electronics has the potential to be a medium - term outperformer due to broad based economic growth, low device penetration rates and vendor investment in local presence over recent years. However, in the short term the market continues to be disrupted by rupiah depreciation against the US dollar which was a squeeze on demand in 2014, and will continue into 2015, albeit to a lesser extent. Nonetheless, w e have a bullish outlook for consumer electronics spending growth in Indonesia over the medium term to 2019 . There is however potential downside from disruption as a result of mooted smartphone import taxe s and other import restrictions - but the medium - term outlook remains positive. Overall market growth will see the market reach USD20.3bn in 2019 , equal to a compound annual growth rate of 5.0 % in US dollar terms 2015 - 2019 .
Headline Expenditure Projections
Computer Hardware Sales: USD6.8bn in 2015 to USD9.4bn in 2019, compound annual growth rate (CAGR) of 6.8% 2015-2019. Due to low penetration we expect continued growth in notebook volumes, alongside booming volumes in the tablet market.
AV Sales : Rising from USD2.1bn in 2015 to USD2.3bn in 2019, CAGR of 1.1% 2015-2019. The AV forecast has been lowered in the Q215 update as price erosion in the TV set market will only partially offset the squeeze on audio devices and digital cameras from the rise of multi-functional smartphones.
Handset Sales: Rising from almost USD7.5bn in 2015 to USD8.6bn in 2019, a CAGR of 4.3% 2015-2019. Market value growth will slow over the medium term due to a combination of market saturation and intense price competition in both the Android and Windows ecosystems.
Key Trends & Developments
In January 2015, the Ministry of Trade and the Ministry of Communications and Information Technology unveiled a new regulation requiring 40% of a smartphone's components to be made in Indonesia, and devices failing to...
The Indonesia 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 Indonesia.
BMI Research's Indonesia 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 Indonesia.
- Benchmark BMI's independent consumer electronics industry forecasts for Indonesia to test other views - a key input for successful budgeting and strategic business planning in the Indonesian consumer electronics market.
- Target business opportunities and risks in Indonesia 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.