2013-10-13 13:01:02 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research
The outlook for the Iranian consumer electronics improved following the US decision to lift restrictions on handset imports in May 2013, however the short term outlook continues to be soured by economic and political challenges. A further drag on sales growth comes from the actions of Iranian authorities to restrict access to internet content. While the market is challenging for vendors, it does have many attractive underlying features, such as a large population and low penetration of PCs and smartphones, meaning significant opportunities still exist for vendors. Meanwhile, sanctions have resulted in some positive developments, for instance the creation of a local manufacturing sector, which has the potential to achieve scale via servicing a population of 74mn. We believe the
market lacks the technical expertise to launch products that rival major international brands and consumers have already demonstrated an ability to acquire devices from neighbouring markets, meaning demand levels for domestically produced devices are uncertain.
Full Report Details at
- www.fastmr.com/prod/689036_iran_consumer_electronics_report_q4_2 ..
Headline Expenditure Projections
* Computer Sales: US$4.7bn in 2013 to US$6.3bn by 2017; CAGR of 6.8% in US dollar terms over the forecast period. Low PC penetration means significant potential, but recent currency devaluations and US sanctions have put the market on a lower growth path.
* AV Sales: US$2.2bn in 2013 to US$2.8bn in 2017; CAGR of 5.3% over the forecast period. The recent launch of digital broadcasting offers opportunities, but demand is nevertheless likely to be weakest in this segment.
* Handset Sales: US$1.8bn in 2013 to US$2.5bn in 2017; CAGR of 9.1% over the forecast period. The handset market received a boost following the lifting of US handset import restrictions; however market growth will continue to be restricted by the slow development of 3G services by telecoms operators.
Iran's score was 39.1 out of 100, the second lowest in the region, ahead of only Egypt and some distance behind Oman in eighth position. Iran's score for Industry Risks drags down its high potential returns, while it has the lowest score in the region in the Country Risks category. Key Trends & Developments The US lifted sanctions on the sale of mobile phones and other communications devices, software and services in Iran on May 30 2013. The easing of sanctions was undertaken to provide Iranians with tools to help promote political freedom ahead of the country's national election. The lifting is a boost for the market, and we made a small upward revision to our forecast to account for easing of import restrictions. However, we believe there will not be a boom in the handset market for several reasons. The first is that high income urban consumers of the sort most likely to buy high end imported handsets have found means of acquiring devices around the sanctions. Second, the 3G market continues to be held back in Iran, with the two largest operators having a combined market share of 99%, and they will continue to be restricted to EDGE and GPRS services into 2014. We therefore expect the smartphone market will only gain significant growth momentum from 2014 and into 2015.
In the AV market replacement TV set purchases will be driven by the roll-out of digital TV broadcasting. Iran launched its first digital TV channel in January 2012 after developments gathered pace in 2011. Larger screen sizes and increased features will encourage consumers to upgrade their existing sets. The switch to digital TV will provide short-term impetus to market growth.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Business Environment
- Industry Forecast
- Table: Consumer Electronics Overview, 2010-2017 (US$mn)
- Economic Analysis
Industry Risk Reward Ratings
- Middle East & Africa Risk/Reward Ratings
- Table: Middle East And Africa Risk/Reward Ratings
- Market Overview
- Table: Computers - Demand, 2010-2017
- AV Devices
- Table: AV - Demand, 2010-2017
- Mobile Handsets
- Table: Mobile Handsets: Demand, 2010-2017
Industry Trends And Developments
- Industry Trends And Developments
- Table: Iran Distributors For Leading Brands
- Regulatory Development
- Competitive Landscape
- Maadiran Group
- Electronic Industries (IEI)
- Table: Iran's Population By Age Group, 1990-2020 ('000)
- Table: Iran's Population By Age Group, 1990-2020 (% of total)
- Table: Iran's Key Population Ratios, 1990-2020
- Table: Iran's Rural And Urban Population, 1990-2020
- Electronics Industry
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