2013-02-24 15:19:46 - Recently published research from Business Monitor International, "Egypt Consumer Electronics Report Q1 2013", is now available at Fast Market Research
BMI projects Egypt's consumer electronics spending will grow by about 11% in US dollar terms in 2013 to US$4.1bn. Spending on consumer electronics has remained a relative bright spot, despite the relatively weak employment backdrop. Strong remittances from Egyptians working in Saudi Arabia have helped to boost household spending but with a weak employment backdrop we expect a moderation in household expenditure in 2013.
Egypt is still expected to be one of the higher-growth consumer markets in the region over the next few years, although several constraints, including: low disposable incomes, economic disparities, low computer literacy and channel inefficiencies, could prevent the market from fulfilling its potential. Key factors behind the forecast growth in Egypt's consumer electronics sales include the emergence
of a more affluent middle class and the growing acceptance of modern retail concepts.
Full Report Details at
- www.fastmr.com/prod/536438_egypt_consumer_electronics_report_q1_ ..
Headline Expenditure Projections
Computer hardware sales: US$1.0bn in 2012 to US$1.1bn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification. Computer penetration is forecast to rise from 10% to above 20% by 2017.
AV sales: US$377mn in 2012 to US$416mn in 2013, +10% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, with flat-screen TV sets the main driver of growth. Handset sales: US$2.3bn in 2012 to US$2.6bn in 2013, +13% in US dollar terms. Forecast in US dollar terms remains unchanged, with aggressive promotions and China imports expected to result in continued price pressure.
Risk/Reward RatingEgypt's score was 39 out of 100, which gave it 10th place in our latest MEA CE RRR table. BMI expects Egypt to attain a higher ranking over time due to the growth potential of its market, particularly in regions outside of Cairo, where distribution and retail infrastructures are currently underdeveloped.
Key Trends & Developments
Flat-screen TV sets will be the main driver of Egyptian AV revenue growth as consumers upgrade and trade their old models for digital. TV penetration is at about 30% of the population and this is expected to increase to around 35% over the forecast period, creating momentum for organic growth. Egypt's growing population and the emergence of a more affluent middle class will also underpin an upwards market trajectory that should outpace GDP growth.
The Egyptian handset market is youthful and urban, with more than half the population under the age of 25. The market retains considerable untapped potential for segmentation. Slowing market growth has led to aggressively priced tariffs by operators Mobinil and Etisalat, keen on obtaining mass subscribers and boosting market share. In 2012, the government launched a crackdown on smuggled Chinese handsets which are believed to account for above 10% of the Egyptian market.
Egypt's consumer PC market retains considerable growth potential as the current level of computerisation is low. PC penetration is estimated in the region of 10% and is forecast to rise to above 20% by 2016. Government digital drive and affordable computer programmes will be increasingly important drivers of the PC market.
Report Table of Contents:
BMI Industry View
- Executive Summary
- Business Environment
- Table: Consumer Electronics Overview, 2010-2017
Industry Risk Reward Ratings
- Table: Middle East And Africa Risk/Reward Ratings
- Table: PC Sales, 2010-2017
- Table: AV Sales, 2010-2017
- Mobile Handsets
- Table: Mobile Communications, 2010-2017
Industry Trends And Developments
- Table: Distributors Of Leading Brands
- Regulatory Developments
- Economic Analysis
- Household Consumption Outlook
- Government Consumption Outlook
- Fixed Investment Outlook
- Net Export Outlook
- Table: Table: Egypt- GDP By Expenditure, Real Growth %
- Raya Holdings
- Axiom Telecom
- Electronics Industry
- Egypt Demographic Data
- Table: Egypt's Population By Age Group, 1990-2020 ('000)
- Table: Egypt's Population By Age Group, 1990-2020 (% of total)
- Table: Egypt's Key Population Ratios, 1990-2020
- Table: Egypt's Rural And Urban Population, 1990-2020
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
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