BMI View : Our core outlook for the US consumer electronics market remains in place in Q415, but we did make a minor upgrade to the smartphone growth forecast this quarter, with slightly higher volumes now envisaged for 2017-2019. This revision has only strengthened our view that t he US consumer electronics market will remain the global leader in terms of market size and adoption of the latest technology 2015-2019. High device penetration rates, strong demand for the latest devices and short replacement cycles makes the US the most market lucrative for vendors - but h igh penetration also results in diminished growth opportunities in some of the key markets such as tablets and smartphones - particularly when compared to emerging markets . . Furthermore , over the medium term we believe questions still remain about the sustainability of consumption in the absence of strong wage growth and the fact most sales will be upgrades rather than new consumers.
Headline Expenditure Projections
Computer Hardware Sales: USD195.3bn in 2014 to USD200.4bn in 2015, +2.6% in US dollar terms. Tablet volumes continue to be squeezed by a diminished pool of first-time buyers and lengthening replacement cycles.
AV Sales: USD54.9bn in 2014 to USD54.8bn in 2015, -0.2% in US dollar terms. Continued contraction of the digital camera market, alongside a saturated TV set market with intense price competition, will mean AV continues to underperform the PC and handset segments.
Handset Sales: USD58.5bn in 2014 to USD58.7bn in 2015, +0.3% in US dollar terms. Forecast upgraded in Q415, with growth now expected to be stronger in later years of forecast, but smartphone market maturity and price pressures in the Android ecosystem will still mean handset market value growth deceleration over the medium term.
| AV Sales Will Continue To Underperform |
|Consumer Electronic Sales Forecast By Segment|
| e/f = BMI estimate/forecast. Source: BMI |
The United States 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 United States.
BMI Research's United States 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 United States.
- Benchmark BMI's independent consumer electronics industry forecasts for United States to test other views - a key input for successful budgeting and strategic business planning in the American consumer electronics market.
- Target business opportunities and risks in United States 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.