BMI View: We have left our core forecasts unchanged for the Mexican consumer electronics market in our Q2 16 report update. We hold the opinion that the consumer electronics market will move to a much stronger footing in 2016 with growth of 7.8% forecast - a turnaround from the contraction in spending in 2015 when peso depreciation eroded Mexican household purchasing power for imported devices. We expect the PC and AV markets to benefit most from the improved economic backdrop as deferred purchases from 2015 are unlocked. Over the medium term, income growth will increase the spending potential of households, both deepening the market by adding new entrants and by reducing the price sensitivity that characterised the mass market in 2015 - and therefore offering vendors the opportunity to increase volumes and sell a greater share of higher - margin devices. BMI forecasts that total consumer electronics device spending will increase to a total of USD19. 6 bn in 2020 .
Latest Updates & Industry Developments
Computer Hardware Sales: USD6.6bn in 2016 to USD9.2bn in 2020. Household income growth will underpin robust expansion of PC market in value and volume terms, while enterprise hardware spending expected to accelerate as business sentiment strengthens.
AV Sales: USD2.6bn in 2016 to USD3.3bn in 2020. Digital TV set upgrades and LED/LCD spending growth will drive AV spending over the medium term as price sensitivity is alleviated in the mid-market.
Handset Sales: USD6.1bn in 2016 to USD7.1bn in 2020. Handset segment spending growth outperformed from 2010-2015, but as the smartphone boom loses momentum and competition from Chinese vendors ensures a dynamic of price erosion we expect growth rates to be more subdued over 2016-2020.
|Positive Trends Ahead|
|Household Income Breakdown (2016-2020)|
|f = BMI forecast. Source: National sources, BMI|
The Mexico 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 Mexico.
BMI Research's Mexico 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 Mexico.
- Benchmark BMI's independent consumer electronics industry forecasts for Mexico to test other views - a key input for successful budgeting and strategic business planning in the Mexican consumer electronics market.
- Target business opportunities and risks in Mexico 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.