Taiwanese consumers are eager to get their hands on the latest gadgets and devices, making it one of the more mature consumer electronic markets in the region. Taiwan is characterised by high penetration rates for all core consumer electronic device categories, meaning growth rates will underperform emerging markets elsewhere in the region. However, we have a positive outlook for the consumer electronics market, with consumer spending high and the launch of 4G services driving higher demands for new devices. There is, however, the possibility that the Taiwanese dollar is exposed to economic slowdown originating in China and could constrain domestic discretionary spending.
We forecast growth of 1.3% in 2015, with market value expected to reach almost USD7.0bn. We identify several growth areas vendors can tap in to in an otherwise mature market. These include large-screen, ultra-HD and OLED TV sets, phablets and 4G smartphones. A key factor in this outlook is the short replacement rate for smartphones and tablets, a trend we expect to continue, with consumers not expecting the longevity delivered by PCs and TVs.
Headline Expenditure Projections
Computer Hardware Sales: USD3.0bn in 2014 to USD3.2bn in 2015, up 6% in US dollar terms. We expect a stabilisation in desktop and notebook volumes, but it will be tablets that again outperform.
AV Sales: USD1.9bn in 2014 to USD1.8bn in 2014, down 5.4% in US dollar terms. Cannibalisation of digital camera sales by multifunctional smartphones and price erosion in the TV market is limiting growth.
Handset Sales: USD2.02bn in 2014 to USD2.04bn in 2015, up 1% in US dollar terms. Rising smartphone penetration will drive increases in market value, but with smartphone market saturation fast approaching, growth rates are expected to slow markedly.
TABLE OF CONTENTS
BMI Industry View SWOT Consumer Electronics Market Political Economic Operational Risk Industry Forecast Table: Consumer Electronics Overview (Taiwan 2013-2019) Macroeconomic Forecasts Economic Analysis Table: Economic Activity (Taiwan 2010-2019) Industry Risk Reward Index Table: Asia CE Risk/Reward Index - Q415 Market Overview Computers Table: PC Sales (Taiwan 2013-2019) AV Devices Table: AV Sales (Taiwan 2013-2019) Mobile Handsets Table: Mobile Communications (Taiwan 2013-2019) Competitive Landscape Local Companies Table: Acer Table: ASUSTeK (ASUS) Table: Foxconn (Hon Hai) Table: HTC Demographic Forecast Table: Population Headline Indicators (Taiwan 1990-2025) Table: Key Population Ratios (Taiwan 1990-2025) Table: Urban/Rural Population & Life Expectancy (Taiwan 1990-2025) Table: Population By Age Group (Taiwan 1990-2025) Table: Population By Age Group % (Taiwan 1990-2025) Methodology Industry Forecast Methodology Sector-Specific Methodology Sources Risk/Reward Index Methodology Sector-Specific Methodology Table: Consumer Electronics Risk/Reward Index Indicators Table: Weighting Of Indicators