Abstract
Israel’s consumer electronics devices market, defined as the addressable
market for computing devices, mobile handsets and AV products, is expected
to grow at a CAGR of 5% to US$3.7bn by 2013, driven by product innovation
and the growing popularity of digital lifestyle products such as LCD TV
sets, notebook computers and other devices, and by a growing population
and expanding PC penetration. In 2009, growth decelerated in computer, AV
and mobile handset segments due to weak consumer sentiment. Data for the
first quarter of the year revealed that spending on household
equipment was down by 6.7%. Growth will recover in 2010 but will
remain below the trend rate of 2006-2008.
Computers
Computer hardware accounted for around 80% of Israeli consumer electronics spending in
2008, due to demand from key verticals such as government and military.
BMI forecasts Israeli domestic market computer sales of US$1.9bn in 2009.
Computer hardware CAGR for the 2009-2013 period is forecast at about 5%,
driven by sales of notebooks and netbooks.
AV Devices
AV devices accounted for around 11% of Israeli consumer electronics spending in 2008. In
2009 Israel’s domestic AV device market was estimated at US$327mn.
The market is expected to grow at a CAGR of 9% between 2009- 2013, to a
value of US$463mn in 2013, with drivers including the launch of digital
TV services.
Mobile Handsets
Mobile handset sales accounted for around 10% of Israel’s consumer electronics spending in 2008. Following a
dip in 2009, Israel’s market handset sales are expected to grow at a
CAGR of 5% to US$298mn in 2013, as mobile subscriber penetration reaches
147%. Sales will be dominated by the replacement market, with growing
demand for smartphones, and 3G handsets.
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