BMI View: Indonesia is expected to be a regional outperformer during our forecast period to 2018 due to a combination of positive consumer electronic market fundamentals and a strong economic growth story. There is downside in 2014 as a result of rupiah depreciation and potential disruption from smartphone import taxes, but the medium term outlook remains positive. In addition to solid economic growth, investment in supporting infrastructure, for instance data networks and retail operations, will deepen the market. Meanwhile, declining device prices in key categories such as tablets and smartphones due to competition between local and Chinese vendors in the Android and Windows ecosystems will boost adoption rates. This trend should see rapidly rising penetration in key product categories. Overall market growth will see the market reach USD16.4bn in 2018, equal to a compound annual growth rate of 8.3%.
Headline Expenditure Projections
Computer Hardware Sales: USD44.1bn in 2014 to USD6.5bn in 2018, CAGR of 10.6% 2014-2018. Due to low penetration we expect continued growth in notebook volumes, contrasting with the developed market trend. Nonetheless it will be tablets that outperform with unit growth CAGR of 32.9% to reach over 7.8mn units in 2018.
AV S ales: rising from USD2.4bn in 2014 to USD3.2bn 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 S ales: rising from USD5.3bn in 2014 to USD6.7bn in 2018, a CAGR of 6.3% 2014-2018. Overall market growth will plateau due to the high penetration of mobile devices, and intense price competition in both the Android and Windows ecosystems.
Key Trends & Developments
The Indonesia smartphone market boomed in 2013, and is expected to continue growing rapidly over the medium term. The sharp fall in the price of...
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.