BMI View: Economic activity in Venezuela virtually ground to a halt in 2016, with out of control inflation and product shortages meaning local consumers faced a dramatic reduction of affordability and product shortages, even for basic goods. Consumer electronics device spending has collapsed in the midst of the crisis, with even local production unable to insulate the market due to price increase s for components far outstripping wage growth. There should be a modest recovery in device spending in the later years of the forecast as the economic environment stabilises but even this is subject to significant uncertainty due to the economic and political unsustainability of existing conditions.
Latest Updates & Developments
Computer hardware: contraction from USD148mn in 2016 to USD101mn in 2020. Reduced demand for both imports and domestically assembled PCs as price rises rapidly eroded affordability.
AV and gaming : contraction from USD178mn in 2016 to USD139mn in 2020. Purchases are being deferred because AV upgrades are the least likely to be considered essential, and so demand conditions will only strengthen once the economy stabilises.
Handsets : USD444mn in 2016 to USD474mn in 2020. The crisis stalled smartphone upgrade momentum, meaning Venezuela still has considerable potential for first-time upgrades, but in the short term economic conditions are so hostile that the market will continue to be depressed.
|No Green Shoots As Economy Grinds To A Halt|
|Consumer Electronics Spending Forecast By Segment|
|f = BMI forecast. Source: BMI|
The Venezuela 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 Venezuela.
BMI Research's Venezuela 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 Venezuela.
- Benchmark BMI's independent consumer electronics industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic business planning in the Venezuelan consumer electronics market.
- Target business opportunities and risks in Venezuela 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.