BMI View: Malaysian consumer electronics demand will begin to recover in 2016 from a sharp contraction in US dollar terms in 2015 when ringgit depreciation and the introduction of the Goods and Sales Tax hit the market. Conditions will however , remain challenging due to further ringgit depreciation , but the recovery should gain momentum from 2017. W e expect all three device segments to return to growth from 2017 onwards as the household income growth dynamic gains strength , with an added boost as deferred purchases from 2015 and 2016 are unlocked . The expected gains for Malaysia's middle class could also eas e price sensitivity and enable vendors to benefit from higher value sales and wider margins , al though this will rely on industry overcapacity being avoided . We forecast total device spending will increase at a CAGR of 5.8% over 2016-2020 as a whole.
Latest Updates And Industry Developments
Computer Hardware Sales: USD1.9bn in 2016 to USD2.6bn in 2020, a compound annual growth rate (CAGR) of 7.3%. A more supportive economic environment and a shift in product cycle dynamics will see the hardware segment regain momentum and growth in value and volume terms.
AV Sales: USD737mn in 2016 to USD886mn in 2020, a CAGR of 4.7%. The AV market is expected to strengthen markedly over 2016-2020 due to a more supportive economic backdrop and upgrade triggers in the form of smart and Ultra-HD TV sets.
Handset Sales: USD2.6bn in 2016 to USD3.1bn in 2020, CAGR of 4.9%. Value growth expected to slow over the medium term as the smartphone market becomes increasingly saturated and reliant on replacement sales.
|Increasingly Affluent Middle Class The Main Opportunity|
|Malaysia Household Income Breakdown (2016-2020)|
|f = BMI forecast. Source: National sources, BMI|
The Malaysia 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 Malaysia.
BMI Research's Malaysia 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 Malaysia.
- Benchmark BMI's independent consumer electronics industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian consumer electronics market.
- Target business opportunities and risks in Malaysia 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.