BMI View: T he Philippine consumer electronics market is considered to have among the strongest growth potential in the region over the medium term . Our bullish outlook for device sales is based on our Country Risk team's view for robust and broad based income growth, and our assessment of low device penetration rates and declining device prices, which will combine to drive a marked deepening of the market over the medium term. We forecast the overall market will grow at a CAGR of 5.4% 2015-2019 to reach USD7.96bn in 2019. In the short-term we envisage continued handset value growth outperformance as the smartphone boom raises handset spending, but by the latter years of the forecast when there will be vastly diminished numbers of smartphone first-time buyers, we expect PC sales to outperform. There is also a regional dimension to our forecast; with many provincial markets are relatively untapped territories and rural populations contain ing the largest number of potential first-time device purchasers.
Latest Updates & Industry Developments
Computer Sales: USD2.1bn in 2015 to USD2.2bn in 2016, +4.7% in US dollar terms. Growth forecast to accelerate slightly from 2015, with strong demand expected in the retail market for both notebooks and tablets.
AV Sales: USD1.0bn in 2015 to USD1.1bn in 2016, +4.4% in US dollar terms. Stabilisation of the digital camera market will allow for an increase in the growth rate in 2016, but due to TV set price competition it will continue to be the underperforming segment.
Handset Sales: USD3.4bn in 2015 to USD3.6bn in 2016, +6.3% in US dollar terms. As the smartphone penetration rate has risen, so the growth rate of the handset market will continue to decelerate in 2016 - but with penetration of 37% at YE15 considerable opportunities remain and we again forecast outperformance in 2016.
|Smartphone Boom Set To Cool To 2019, But Major Opportunities Remain In Short Term|
|Smartphone Market Forecast, 2013-2019|
The Philippines 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 Philippines.
BMI Research's Philippines 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 Philippines.
- Benchmark BMI's independent consumer electronics industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in the Philippine consumer electronics market.
- Target business opportunities and risks in Philippines 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.