Demand in emerging countries will expand in line with economic growth, rising incomes and relatively low product penetration
Los Angeles, CA (PRWEB) July 01, 2012
Demand for consumer electronic products has been promoted by new innovative products, falling selling prices and growing household incomes, particularly in emerging markets in Asia, Eastern Europe and South America. Despite these positive trends, effects of the recessionary years were felt around the globe and restrained industry growth. As a result, revenue for the Global Consumer Electronics Manufacturing industry actually declined an estimated 0.9% per year on average over the past five years. “Market saturation has also been presenting problems for the industry,” says IBISWorld industry analyst Nigel Fitzpatrick, “so industry players need to continually innovate and introduce new attractive products to stay competitive.” Over 2012, industry revenue is expected to continue downward, albeit at a slower rate of 0.2%, and generate revenue of $215.6 billion.
In addition to slowed demand for consumer electronics, “the global economic downturn also stimulated consolidation within the sector,” says Fitzpatrick. For example, Panasonic acquired a major stake in Sanyo Electric Co. Ltd in December 2009, and then later acquired the remainder of Sanyo; this marked the first major shake-up of Japan's consumer electronics industry. Other major players include Samsung Electronics Co. Ltd., Sony Corporation and LG Electronics Inc. In 2012, the Global Consumer Electronics Manufacturing industry is estimated to have 9,245 companies that will employee a total 2.1 million workers.
Industry activity over the five years to 2012 has been promoted by growth in sales volumes, which has been slightly offset by a decrease in average unit selling prices. Demand for consumer electronics in advanced countries is affected by slow economies in much of the advanced world and, more recently, by a build up in product penetration, which is causing sales to slow. Demand in emerging countries will grow at a rapid pace due to economic growth, rising incomes and relatively low penetration of many consumer electronic products. In the coming five years, revenue is expected to turn around. Industry activity will respond to the strengthening global economy, which will release some pent-up demand, particularly for high-value and newly innovated products. For more information, visit IBISWorld’s Global Consumer Electronics Manufacturing industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry comprises enterprises primarily engaged in manufacturing electronic audio and video equipment for home entertainment, motor vehicle, public address and musical instrument amplifications. Examples of products made by these establishments are video cassette recorders, TVs, stereo equipment, speaker systems, household-type video cameras, jukeboxes, and amplifiers for musical instruments and public address systems.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.