Emerging technologies and falling prices have stimulated demand but hurt revenue
Los Angeles, CA (PRWEB) December 16, 2013
Over the five years to 2013, IBISWorld expects revenue for the Computer Peripheral Manufacturing industry to fall at an annualized rate of 0.9% to $20.7 billion. This decrease does not reflect declining sales in unit terms; rather, it reflects collapsing per product prices. In the mid 2000s, for example, an average midrange 19-inch flat-screen computer monitor cost about $600; however, a similar-sized computer monitor costs less than $200 today. These price declines have offset growth in the quantity of products sold, which rose at an annualized rate of 9.0% during the past five years. Nevertheless, in 2013, revenue is expected to rise again by 3.4% due to favorable exchange rates.
Since 2008, consolidation and technology advancements have reduced the need for workers and businesses in this industry. In the five years to 2013, the number of industry enterprises is expected to fall at an average of 0.8% annually. Over the same period, the number of employees is also expected to decrease at an annualized rate of 0.5%. While most of these job cuts are directed at unskilled factory workers, some can be attributed to a growing degree of product research being performed abroad. Nonetheless, the cost savings associated with outsourcing tasks to low-wage countries have benefited major companies, allowing for stronger profit margins compared with other manufacturing industries. Despite declining prices, IBISWorld estimates that industry profit will rise in 2013.
The next five years look brighter for the industry. Revenue is expected to return to growth. Higher rates of computer ownership and related-technology adoption in emerging economies will provide significant support to domestic manufacturers of computer peripherals. Today's emerging technologies, including organic light-emitting diodes and solid-state drives will begin to replace aging liquid crystal display screens and obsolete memory formats, respectively, boosting industry demand.
The Computer Peripheral Manufacturing industry has a moderate level of concentration. The top four firms in the industry are Hewlett-Packard Company, Seagate Technology, Western Digital Corporation, and Dell Inc. Concentration increased significantly during the past five years due to acquisitions. IBISWorld expects market share concentration to increase further during the five years to 2018 as diversified manufacturers sell off business divisions to competitors.
For more information, visit IBISWorld’s Computer Peripheral Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Computer Peripheral Manufacturing Industry includes companies that manufacture computer displays (i.e. monitors) and peripherals (e.g. keyboards, mice, printers and scanners). Manufacturers of networking equipment (e.g. routers and modems) are not included (see IBISWorld report 33421, Telecommunication Networking Equipment Manufacturing).
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.