Independent 5-year Consumer Electronics Industry Forecasts for Kuwait

Kuwait’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$752mn in 2011. This is expected to increase to US$941mnn by 2015, driven by growing popularity of flat-screen TV sets, smartphones, notebook computers and other premium products, as well as ongoing expansion of the electronics retail sector.

In 2011, an array of new product releases should help to stimulate demand, despite overall weak household consumption. Growth is expected, despite a still mixed economic context. According to the Central Bank of Kuwait, imports have been decreasing in the past four years, but demand for new hightier products such as smartphones and LED TV sets was a growth area in 2010, with customers upgrading for the latest technologies and features.

Analysts forecast that per capita consumer electronics spend will reach US$242 by 2015, from US$202 in 2011. Key factors behind the forecast growth are a favourable long-term economic outlook, a sophisticated consumer base and high levels of disposable income. However, we do not see a return to the stellar growth rates of the last few years (real private consumption growth averaged 9.0% between 2002 and 2007,) as there are doubts about the ability of infrastructure projects to feed through into job creation and a consumer recovery.

Computers

Computer hardware accounted for around 45% of Kuwaiti consumer electronics spending in 2010. Researchers project Kuwait’s domestic market computer hardware sales (including notebooks and accessories) of US$343mn in 2011, up from US$317mn in 2010. Computer hardware compound annual growth rate (CAGR) for the 2011-2015 period is forecast at about 7%, with the emergence of tablets helping to drive sales.

AV Devices

AV devices accounted for around 35% of Kuwaiti consumer electronics spending in 2010. Kuwait’s domestic AV device market is projected at US$247mn in 2010. The market is expected to grow at a CAGR of 3% from 2011-2015, to a value of US$292mn in 2015. More ‘big box’ electronics stores offering a wider choice and often better prices will help stimulate sales. Meanwhile, product innovation will drive demand in the AV product category, with a focus on features such as 3D, improved display quality and wider screens, as well as design and wireless capabilities.

Mobile Handsets

Mobile handset sales accounted for around 20% of Kuwaiti consumer electronics spending in 2010. Kuwait’s market handset sales are expected to grow at a CAGR of 7% to US$199mn in
2015, as mobile subscriber penetration reaches 190%. Following the entry of new mobile network operator Viva, more competition will drive the replacement handset market and there will be growing demand for smartphones and 3G handsets. The upgrade of network infrastructure to support new data services will help to drive demand for 3G and higher-tier handsets.

TABLE OF CONTENTS

Executive Summary  
Computers. 5
AV Devices  6
Mobile Handsets . 6

SWOT Analysis  
Kuwait Consumer Electronics Market SWOT . 7
Kuwait Political SWOT . 8
Kuwait Economic SWOT. 8
Kuwait Business Environment SWOT . 9

Market Overview  
Computers. 13
Table: PC Sales  13
AV . 16
Table: AV – Demand. 16
Mobile Handsets . 19
Table: Mobile Communications  19

Consumer Electronics Industry  
Table: Kuwait Distributors For Leading Brands  26

Industry Forecast Scenario
Consumer Electronics Market  27
Table: Consumer Electronics Overview  27

Industry Developments

Macroeconomic Forecast  
Table: Kuwait – Economic Activity . 34

Competitive Landscape  
Computer  35
Handsets . 36
AV . 38

Company Profiles  
Axiom Telecom . 40
Jumbo Electronics  42
Eros Group . 44