BMI View: T he computer hardware and AV segments contracted in US dollar terms in 2014 as a result of rupiah depreciation, but the market as a whole continued to grow, driven by the booming smartphone market. From 2015 we expect the market to return to broader based growth and w e have a bullish outlook for consumer electronics spending growth in Indonesia over the medium term to 2018. P ositive consumer electronic s market fundamentals such as low device penetration and a strong economic growth story , combine to underpin our view that Indonesia will be a medium - term outperformer . There is however potential downside from disruption as a result of mooted smartphone import taxe s - but the medium - term outlook remains positive. Overall market growth will see the market reach USD 21 bn in 2018, equal to a compound annual growth rate of 6.4 % in US dollar terms 2014-2018 .
Headline Expenditure Projections
Computer Hardware Sales: USD6.8bn in 2015 to USD9.7bn in 2018, CAGR of 6.4% 2014-2018. Due to low penetration we expect continued growth in notebook volumes, alongside booming volumes in the tablet market.
AV Sales: rising from USD2.4bn in 2015to USD2.8bn in 2018, CAGR of 3.0% 2014-2018. Price erosion in the TV set market will only partially offset the squeeze on audio devices and digital cameras from the rise of multi-functional smartphones, meaning AV demand growth in forecast to underperform.
Handset Sales: rising from almost USD7.5bn in 2015 to USD8.6bn in 2018, a CAGR of 7.5% 2014-2018. Market value growth will slow over the medium term due to a combination of market saturation and intense price competition in both the Android and Windows ecosystems.
Key Trends & Developments
BMI does not expect the next-generation TV segment to have a significant impact on overall AV spending growth dynamics in the short-term, but there are opportunities for specific vendors. For instance, one vendor with a positive outlook for the...
The Indonesia 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 Indonesia.
Business Monitor International (BMI)'s Indonesia 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 Indonesia.
- Benchmark BMI's independent consumer electronics industry forecasts for Indonesia to test other views - a key input for successful budgeting and strategic business planning in the Indonesian consumer electronics market.
- Target business opportunities and risks in Indonesia 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.