Electronics Production |
European TV Market heats up despite economic crisis
With the European Union’s economy showing signs of recovery, television sales in the region are expected to rise in 2009 as consumers continue to snap up LCD-TVs, according to iSuppli.
“Television sales in Europe will rise to 51.97 million units in 2009, up 3.4% from 50.2 million in 2008,” said Riddhi Patel, principal analyst for television systems at iSuppli. “LCD-TVs, which will account for 79% of the market year, will see their sales rise by a robust 17.5% in 2009 to reach 41.1 million units, up from 35 million in 2008.”
The attached figure presents iSuppli’s forecast of the European television market by display technology.
Economic recovery
According to the European Commission’s recent reports, indications of an economic recovery from what were record lows have been confirmed by improved business and consumer confidence in the 16 Euro-using-countries in May, the second month in row.
According to the European Commission, the index of business and consumer confidence in the Euro zone increased to 69.3 in May, up from 67.2 in April—the highest level since November 2008. Consumer spending also has increased in all major European countries, including France and Germany. Overall, the region’s economy has stabilized, but concerns remain about the labor market and rising unemployment rates, which could counter the impact of lower inflation rates on household spending. Nevertheless, despite mixed signals, there are more positive signs of an economic recovery taking place in Europe than there are negative indicators.
LCD-TV market show strength
The continued growth in Europe’s LCD-TV market also can be attributed to factors including:
• Increased demand in Eastern Europe for both first-time and replacement buyers
• Declining prices, which have made these televisions attractive to consumers across various income levels
• The introduction of new features, such as 100Hz/200Hz refresh rates, and now Light Emitting Diode (LED) backlights
• Increased domestic production, which has led to better management of inventories
CRT and plasma, which continue to lose ground in Europe, will suffer a 40.2 percent decline in sales compounded annually between 2008 and 2013. The technology is retreating due to a lack of consumer interest, falling brand and retail support and the diminishing price differential between LCD- and CRT-TVs of similar sizes and features.
During the same time frame, plasma TV sales will decline at 16.4% compounded rate while LCD-TVs will grow at a 11.5% Compound Annual Growth Rate (CAGR) to reach 60.3 million units.
Economic recovery
According to the European Commission’s recent reports, indications of an economic recovery from what were record lows have been confirmed by improved business and consumer confidence in the 16 Euro-using-countries in May, the second month in row.
According to the European Commission, the index of business and consumer confidence in the Euro zone increased to 69.3 in May, up from 67.2 in April—the highest level since November 2008. Consumer spending also has increased in all major European countries, including France and Germany. Overall, the region’s economy has stabilized, but concerns remain about the labor market and rising unemployment rates, which could counter the impact of lower inflation rates on household spending. Nevertheless, despite mixed signals, there are more positive signs of an economic recovery taking place in Europe than there are negative indicators.
LCD-TV market show strength
The continued growth in Europe’s LCD-TV market also can be attributed to factors including:
• Increased demand in Eastern Europe for both first-time and replacement buyers
• Declining prices, which have made these televisions attractive to consumers across various income levels
• The introduction of new features, such as 100Hz/200Hz refresh rates, and now Light Emitting Diode (LED) backlights
• Increased domestic production, which has led to better management of inventories
CRT and plasma, which continue to lose ground in Europe, will suffer a 40.2 percent decline in sales compounded annually between 2008 and 2013. The technology is retreating due to a lack of consumer interest, falling brand and retail support and the diminishing price differential between LCD- and CRT-TVs of similar sizes and features.
During the same time frame, plasma TV sales will decline at 16.4% compounded rate while LCD-TVs will grow at a 11.5% Compound Annual Growth Rate (CAGR) to reach 60.3 million units.
