Portable Video Playback On The Rise Across Asia; GfK Asia Expects Asian Consumers to Purchase More than 10 Million Portable Video Players in 2007Friday, August 24th, 2007
LCD Television Sales in China Forecast to Top US$7 Billion in 2007
SINGAPORE — GfK Asia releases its 2007 Half Year Pan Asian Consumer Electronics Data Summary, highlighting the trends in the region’s consumer electronics sector. The report includes data from 13 countries overall, covering the following products: television; DVD player and recorder; audio home system and home theatre system; camcorder; MP3 digital portable audio player and MP4 portable digital video player; portable radio player; personal headphone stereo; and, personal audio CD/MD player.
The total size of the television market in Asia is estimated to hit US$22 billion for the full year 2007. In the first half of 2007, LCD televisions comprised the largest television category in terms of value; capturing 60% of total consumer spend, compared to conventional televisions
(22%), plasma televisions (16%), and rear projection televisions (1%). On a volume basis, LCD televisions are out-selling plasma televisions in retail channels at rates of six-to-one in Asia and thirteen-to-one in China.
“LCD TVs are literally flying off the shelves in China and all across Asia,” says Steven Kaiser, Commercial Director of Consumer Electronics, GfK Asia. “In Asia total, we measure year-on-year growth rates 115% on a volume basis for LCD TVs. In the first half of the year, China registers LCD TV year-on-year growth above 100% on a value basis, with the market now forecast to be above US$7 billion in 2007. Overall, it is a remarkable trend for LCD TV manufacturers and consumers alike.”
DVD Player, Recorder, and Portable
Sales of DVD portable players (battery-powered devices) are on the upswing across Asia. This is the only segment of the DVD player market that is on a growth trend, recording a 34% gain on a volume basis against the same time frame in 2006. The market value of DVD portable player sales across 12 countries** in the Asian Region is forecast to reach nearly US$200 million in 2007, representing around 12% of the overall DVD player market demand. On aggregate, the forecast is for almost 24 million DVD players to be sold in 2007 in the Asian Region.
“Portable video playback is on the rise across Asia,” says Kaiser. “We expect more than 10 million portable video players to be purchased in 2007, covering both DVD portables and MP4 portables. Combine this with the growth in mobile phones the feature video playback and you have strong evidence that Asian consumers truly want to experience video on the move. At the
same time, on-demand portable video content is actually still quite limited. Several broadcast technologies suitable for mobile and portable video, for example DVB-H and DMB, will vie for widespread adoption. These technologies will put television in the palm of your hand. The current growth in portable video playback suggests that Asian consumers are ready for this future ‘mobile TV’ reality. In fact, that future has already arrived in South Korea.”
Audio Home System and Home Theatre System
The total consumer spend on audio home systems and home theatre systems is forecast to reach nearly US$1 billion in 2007 with just under four million units sold across the 12 Asian countries** measured. Southeast Asia is proving a robust market for home theatre systems; consumer demand is rising across the region. For the first half of the year, Philippines measures up 237% on value basis, followed by Malaysia (up 49%), Thailand (up 43%), Vietnam (up 37%), and Indonesia (up 32%) when measured against results from the same period last year.
The digital camcorder market value is forecast to be US$ 1.5 billion in 2007 with an estimated 2 million plus units sold across 12 countries** in the Asian Region. In the first half of 2007, several countries are registering higher retail sales compared to a year ago, including Singapore, Indonesia, and China.
“Digital camcorders have changed dramatically in the last several years as they face competition from digital still cameras that feature ever-better video recording capabilities,” says Kaiser. “Consumers have responded well to advanced digital camcorder storage technologies, such as DVD and hard disk drive. Recently, several manufacturers have launched very impressive hi-definition digital camcorders into the market. With these developments, the camcorder segment looks fit to enter a new era.”
MP3 Digital Portable Audio Player and MP4 Digital Portable Video Player
Sales of MP4 digital portable video players are continuing to surge, growing by more than 40% year-on-year on a volume basis. MP4 digital portable video player sales are forecast to approach 10 million units across the nine countries*** tracked in 2007. Overall, the digital portable player category is forecast to exceed 22 million units in 2007 and reach US$2.3 billion in total demand.
“Asian consumers are certainly enjoying digital music more than ever. Not surprisingly, they are spoilt for choice with many intriguing devices available that are capable of digital music playback, including mobile phones and digital still cameras,” says Mr. Kaiser. “As a result, we report that retail sales of MP3 players have passed an inflection point and are now in decline, this is especially true of the lower priced models. The heir apparent to the music-only MP3 player is proving to be MP4 devices that feature both music and video playback.”
* 13 countries surveyed for Television were China, South Korea, Taiwan, Hong Kong, Thailand, Malaysia, Vietnam, Singapore, Indonesia, Cambodia, Philippines, New Zealand, and Australia.
** 12 countries surveyed for DVD Player and Recorder, Audio Home System, Home Theatre System, and Camcorder were China, South Korea, Taiwan, Hong Kong, Thailand, Malaysia, Vietnam, Singapore, Indonesia, Philippines, New Zealand, and Australia.
*** 9 countries surveyed for MP3 Digital Portable Audio Player and MP4 Digital Portable Video Player were China, South Korea, Taiwan, Hong Kong, Thailand, Malaysia, Singapore, New Zealand, and Australia.