Independent 5-year Consumer Electronics Industry Forecasts for Hungary

Hungary’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is projected at around US$2.2bn in 2010. Following a slowdown in 2009 and 2010, spending is expected to increase at a compound annual growth rate (CAGR) of 4.2% to US$2.7bn by 2014, driven by growing popularity of digital lifestyle products such as LCD TV sets and 3G handsets.

The outlook for private consumption in Hungary in 2010 remains weak, as households and corporates focus on paying down debt accumulated in the pre-crisis credit boom rather than on new spending. Despite this, rising incomes, product innovation and favourable social and demographic trends should support a long-term growth trajectory for consumer electronics spending. Mobile telecoms penetration in Hungary remains much lower than in neighbouring markets, while digital television subscriptions rose to 43.5% of Hungary’s almost 3mn television subscribers in August 2009.

Computers
Computer hardware accounted for around 54% of Hungary’s consumer electronics spending in 2009. BMI forecasts Hungary’s domestic market computer hardware sales (including notebooks and accessories) of US$1.2bn in 2010. Computer hardware CAGR for the 2010- 2014 period is forecast at about 5.6%, driven by sales of feature-rich notebooks and netbooks.

AV Devices
AV devices accounted for around 34% of Hungary’s consumer electronics spending in 2009. Hungary’s domestic AV device market is forecast at US$759mn in 2010. Demand for flatscreen TV sets will be the main driver of a 2010-2014 AV spending CAGR of 4.3%, as Hungary moves towards digital broadcasting, while video devices such as flat-screen TV sets, digital cameras and VCR players account for more than 80% of demand.

Mobile Handsets
Mobile handset sales accounted for around 11% of Hungary’s consumer electronics spending in 2009. Hungary’s market handset sales are expected to grow at a 2010-2014 CAGR of 2.5% to US$308mn in 2014, as mobile subscriber penetration reaches 132%. Sales will be dominated by the replacement market, with growing demand for smartphones and 3G handsets. Hungarian mobile operators are planning to place mobile broadband and data services centre-stage in the months ahead.

TABLE OF CONTENTS

Executive Summary 
SWOT Analysis 
Hungary Consumer Electronics Market SWOT 
Hungary Political SWOT 
Hungary Economic SWOT 
Hungary Business Environment SWOT 
Business Environment Ratings 
Table: Regional Consumer Electronics Business Environment Ratings

Consumer Electronics Market 
Computers
Table: PC Sales 
AV Devices 
Table: AV Sales 
Mobile Handsets 
Table: Mobile Communications 

Consumer Electronics Industry 
Table: Electronics Output 
Table: Hungary Industrial Parks And Resident IT/Electronics Companies 
Table: Restructuring Plans Of Major IT/Electronics Companies In Hungary 
Table: Electronics Output By Segment 
Table: Foreign Direct Investment By Asian LCD TV Set Manufacturers In Hungary 

Industry Forecast Scenario 

Consumer Electronics Market 
Table: Consumer Electronics Overview 

Industry Developments
Macroeconomic Forecast 
Table: Hungary – Economic Activity 

Competitive Landscape 
Computer 
Handsets 
AV 
Domestic Company Monitor
Albacomp 

Methodology 
How We Generate Our Industry Forecasts 
Electronics Industry 
Sources