BMI View: T he Philippine s is deeply connected to the global consumer electronics industry as a major supplier of intermediate components, and as incomes have risen it has increasingly become a growth opportunity for the sale of finished products. Our bullish household income growth outlook for the Philippines is the basis for a strong device demand growth forecast that we believe will benefit vendors through first time buyers, a significant opportunity given low device penetration rates in some key categories, as well as an easing of price sensitivity in the mid and high-end local market. We forecast the overall market will grow at a CAGR of 7.0 % 2016-2020 to reach USD9.17 bn in 2019. While the core scenario is for strong growth, there is downside due to regional economic uncertainties that could undermine device demand growth and/or disrupt the local electronics industry .
Latest Updates & Industry Developments
Computer Sales: USD2.10bn in 2016 to USD2.92bn in 2020, a CAGR of +8.6% in US dollar terms. Purchasing power gains by households envisaged over the medium term is the foundation for our computer hardware market outlook, where a deepening of the PC market and easing price sensitivity in the middle class should be targets for vendors.
AV Sales: USD1.04bn in 2016 to USD1.35bn in 2020, CAGR of +6.8%. Digital migration and rising incomes will drive TV set upgrade demand while stabilisation of the digital camera market will allow the growth rate to move higher over the medium term.
Handset Sales: USD3.86bn in 2016 to USD4.90bn in 2020, a CAGR of +6.2%. In the short term smartphone boom will continue, but as the penetration rate climbs growth will slow in the later years of our forecast.
|PC Market To Shine As Smartphone Boom Cools|
|Consumer Electronics Forecast By Segment, 2014-2020|
|e/f = BMI estimate/forecast. Source: BMI|
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.