By Andy Sambidge
Business Monitor Int'l report says cautious spending habits likely to continue this year
The UAE’s consumer electronics market is projected to reach $3.1bn this year, increasing to $4bn by 2015, according to a new report by Business Monitor International.
Analysts said the growth would be driven by new electronic devices such as LED and 3D TV sets, 3G mobile handsets, smartphones and Blu-ray players.
The report said that 2010 was expected to see "modest single-digit growth in consumer electronics sales" in the UAE, adding that while most large electronics retailers expected better times ahead, they remained cautious.
"The shift towards more cautious domestic spending patterns islikely to persist well into 2011, with consumption growth remaining muted, particularly in Dubai," BMI said.
However, it added that Dubai benefited most from a pick-up in the tourist trade, providing a boost to the important carry trade for electronics goods.
BMI forecasts domestic market computer hardwaresales, including notebooks and accessories, of $1.8bn in 2011, up from $1.7bn last year, adding that the compound annual growth rate (CAGR) for sales between 2011-2015 would be about six percent.
The UAE's audio visual device market is projectedat $969mn in 2011, BMI added, and is expected to be worth $1.2bn by 2015.
"The rollout of high definition broadcasting will drive demand for premium TV sets and Blu-ray devices. Meanwhile following the launch of 3DTV services by triple-play service provider Etisalat, vendors will target this potential growth area," BMI's report said.
Following a reverse last year, BMI said mobile handset sales are expected to grow at a CAGR of five percent to $426m through to 2015, when mobile subscriber penetration is forecast to pass 238 percent.
"Sales will be dominated by the replacement market and revenues driven by demand for smartphones and 3G handsets, despite uncertainty surrounding potential restrictions on BlackBerry services in the UAE," the report added.