EL SEGUNDO – Global consumer electronics equipment manufacturing revenue in 2010 is set for a rebound from the downturn of 2009, setting the stage for a sustained rise during the next four years, says iSuppli Corp.
Overall OEM revenue for consumer electronics in 2010 is projected to reach $340.4 billion, up 6.2% year-over-year, reversing the 4.4% decline in 2009.
The market will continue to climb steadily during the next four years, adding revenue ranging from $3 billion to $18 billion yearly, ending with more than $385 billion by 2014.
Consumer confidence levels this year are higher globally than they were in 2009, suggesting buyers will be more inclined to acquire new devices or upgrade old electronics equipment, says the firm.
Nonetheless, potential trouble could lie ahead, especially if the fragile economic recovery unspools and consumers decide to withhold spending dollars, iSuppli warns. Furthermore, inventories of consumer goods are beginning to accumulate, especially in LCD panels and televisions, where oversupply is starting to appear. And although overall unit shipments for electronic devices will keep growing in the years ahead, the continual price erosion that is a hallmark of the consumer market will lead to virtually flat revenue after 2012.
The strongest performers in the consumer electronics space this year compared to last are LCD-TVs and Blu-ray players.
LCD-TVs will ship more than 178 million units in 2010 – up slightly from earlier projections of 177 million units – bringing in revenue worth almost $95 billion, iSuppli says. Even in 2009, LCDTV shipments rose by almost 40%.
Blu-ray player shipments will reach 16.4 million units this year, up 82.2% compared to 2009. Blu-ray player shipments will continue to rise at rates exceeding 50% for the next two years, after which expansion will moderate and level off. By 2014, Blu-ray shipments will amount to 68.9 million – nearly eight times their 2009 level.
The long-term picture for Blu-ray, however, may not be quite as optimistic as figures seem to indicate, iSuppli believes. Because other consumer systems such as video game consoles, digital media adaptors and televisions are increasingly able to stream movies and other video content, the need for a physical disc player might diminish over time. iSuppli believes Blu-ray players will not enjoy the same longevity as the DVD player did.
The portable media player market in 2010 now is expected to fall short of earlier forecasts, iSuppli research shows. Facing greater competition from other electronic systems like cellphones with multimedia capability, PMPs will suffer declining shipments after what appears to be the market peak for the segment in 2009.
GUARULHOS, BRAZIL -- Visteon is making a multimillion dollar investment to expand its interiors and electronics production capacity in Brazil.
ZEELAND, MI -- Gentex will purchase an existing, 108,000 sq. ft. electronics manufacturing facility in Holland, MI, to help cope with greater demand for the company's automotive electronics.