BMI View: W e have a bullish outlook for consumer electronics spending growth in Indonesia in 2014 and 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 downside as a result of rupiah depreciation and potential disruption from smartphone import taxe s - but the medium - term outlook remains positive. Overall market growth will see the market reach USD 22.8 bn in 2018, equal to a compound annual growth rate of 9.2 %.
Headline Expenditure Projections
Computer Hardware Sales: USD6.5bn in 2014 to USD10.7bn in 2018, CAGR of 11.1% 2014-2018. Due to low penetration we expect continued growth in notebook volumes, alongside booming volumes in the tablet market.
AV Sales: rising from USD2.6bn in 2014 to USD3.5bn in 2018, CAGR of 8% 2014-2018. The increasing share of sales going to flat-screen TVs will drive increases in market value, offsetting the squeeze on audio devices and digital cameras from the rise of multi-functional smartphones.
Handset Sales: rising from USD7.0bn in 2014 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
The smartphone market in Indonesia has been a bright sport for vendors in recent years, with steep increases in market volume and value. Penetration has risen since 2011, but with plenty of room for further growth, BMI expects the boom to continue. This assessment is shared by Android partner vendors, with a number setting ambitious targets. For instance, Asus has targeted mass market sales of 1.6mn smartphones in Indonesia in 2014, while second largest smartphone vendor in H114 Lenovo, stated that it is targeting growth in...
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.