About Futuresource Consulting

Futuresource Consulting, the specialist research and consulting company, is delighted to be the official knowledge partner for CEATEC JAPAN. The company can trace its roots back to the 1980s and provides market insights into consumer electronics, digital imaging, entertainment media, broadcast, optical manufacturing, storage media, professional IT and education technology.
With more than 70 full-time employees providing in-depth analysis and forecasts across consumer and professional electronics categories, Futuresource is able to advise on market, competitive and technological developments, providing clients with access to the information that helps produce the best possible results.

Vol.1302017/1/31

WORLDWIDE CE REVENUES RETURNED TO GROWTH IN 2016

CE market revenues returned to growth in 2016, following 2015's 'blip'. Growth was modest, however, at 1.2% (to reach $680 billion), as 'emerging' markets faltered, mobile revenues slowed and categories such as small-screen TV's and cameras continued to be squeezed by convergence. Despite the challenges, which also include the ever present threat of another worldwide recession, several hotspots of innovation are fuelling growth in CE, including VR & AR, connected cars, voice assistants, smart home, as well as stability returning to TV and PC.

Representing almost one in five dollars spent on CE, 'traditional' categories such as TV, audio and video equipment stabilised last year thanks to improving TV sales and continued growth in wireless speakers, headphones and digital media adapters (which includes the likes of Amazon Fire TV Stick, Roku, Apple TV, etc.), offsetting declines in set top boxes and Blu-ray/DVD equipment.

Emerging markets, which now represent over half of the worldwide CE market, have badly weakened since 2014, largely due to weakening economies in important regional hubs, such as Russia, Brazil, and more recently Nigeria, Africa's largest economy and market. The falling price of Oil, unrest in the Middle East, and currency fluctuations brought about by sanctions on Russia and more recently Brexit, are contributing to price pressure and slowing demand. N America remains strong at 21% of global CE demand, driven by affluence and avid demand for new technology.

In a competitive context, Apple and Huawei grew strongly in FY 2015, although Apple has flattened in 2016, while most other major CE brands continue to struggle to find growth and profitability in a flat market environment. Barriers to entry within CE manufacturing continue to fall, allowing new entrants with low overheads to slice into market share using available SoC technology and contract manufacturers in China. Internet giants are increasingly competing in CE hardware; Amazon, most notably, took 16% of home audio revenues in Q3 in the USA with its hugely popular Echo.

The 5-year outlook for consumer electronics is 1% CAGR, with revenues reaching $710 billion by 2021, subject to a relatively stable world economy.