Consumer electronics

Consumer electronics or home electronics are electronic or digital equipment intended for
everyday use, typically in private homes. Consumer electronics include devices used for
entertainment (flat screen TVs, DVD players, DVD movies, iPods, video games, remote control
cars, etc.), communications (telephones, cell phones, e-mail-capable laptops, etc.) and homeoffice activities (e.g., desktop computers, printers, paper shredders, etc.). In British English they
are often called brown goods by producers and sellers, to distinguish them from "white goods"
such as washing machines and refrigerators.[1][n 1] In the 2010s, this distinction is not always
present in large big box consumer electronics stores, such as Best Buy, which sell both
entertainment, communications and home office devices and kitchen appliances such as
refrigerators. Consumer electronics stores differ from professional audio stores in that the former
sells consumer-grade electronics for private use, whereas the latter sells professional-grade
electronics designed for use by audio engineers and audio technicians.
Radio broadcasting in the early 20th century brought the first major consumer product, the
broadcast receiver. Later products included telephones, personal computers, MP3 players, audio
equipment, televisions (first cathode ray tube TVs, then in the 2000s, flatscreen TVs),
calculators, GPS, automotive electronics (car stereos), video game consoles, electronic musical
instruments, karaoke machines, digital cameras and players and recorders using video media
such as VCRs in the 1980s and 1990s, followed by DVDs andBlu-ray discs. Stores also sell
digital cameras, camcorders, cell phones and smartphones. In the 2000s, most products have
become based on digital technologies, and have largely merged with the computer industry in
what is increasingly referred to as the consumerization of information technology.
https://en.wikipedia.org/wiki/Consumer_electronics

Leading SMEs Of India 2011

The Indian electronic goods industry forms a small part of the global electronics industry. In
recent years, the domestic electronic goods industry has grown robustly, driven by manufacturing
growth, ICT penetration, rising disposable income, retail boom, and attractive finance schemes.
Production grew at an impressive 18.3% CAGR during FY06-FY10. In FY11, production is
estimated to have increased by about 10.0% y-o-y to ` 1,217.6 bn. However, there exists a large
gap in demand and supply in this sector. Domestic production constitutes less than 45% of
domestic consumption (FY09). As most raw material required for manufacturing electronic

goods is not available domestically, manufacturers need to import it from countries such as
China, Taiwan and Korea.

Industry Structure
The Indian electronics industry is broadly divided into consumer electronics, industrial
electronics, computer hardware, strategic electronics, communication and broadcasting
equipment, and electronic components. As per FY11 estimates, consumer electronics and the
communication and broadcast equipment segments have the largest share comprising 28% and
27% of the total production, respectively. While the consumer electronic segment has always
held a dominant share, the share of the communication and broadcast equipment segment has
increased during the recent years.

1. Consumer electronics
The consumer electronics segment includes products that can be directly used by endusers such as television sets, DVD/MP3 players, and microwave ovens. India has a large
manufacturing base for this segment and it is a highly competitive market. Currently, the
Indian consumer electronics market is dominated by MNCs. A growing middle class,
demand for premium and luxury products in the urban markets due to changing consumer
lifestyle, and low-end, affordable products drive demand for this segment.
Production of consumer electronics is estimated to have increased 15.2% to ` 334.0 bn in
FY11 as against production of ` 290.0 bn in FY10. According to the Department of
Information Technology, within this segment, colour TVs has the largest revenue share.
The domestic market for colour TVs is estimated to at 16.1 mn units in FY11, a growth of
5.5% over FY10. The market for colour TV is driven by robust sales of LCD TVs. The
market for LCD TV has increased from 1.5 mn units in FY10 to 2.8 mn units in FY11,
primarily owing to declining prices and low penetration levels.
Going forward, higher disposable income and availability of finance, increase in
digitisation, affordable products in most categories, establishment of retail chains and
growing organised retail will continue to be the growth drivers for consumer electronic
goods.

2. Industrial electronics
Industrial electronics comprises critical hardware technologies and systems with built-in

software. The important devices used in this segment relate to power electronics, medical
electronics and other intermediates such as semiconductors. It is one of the challenging
areas that requires high level of technical skill in designing systems for applications in a
variety of industrial sectors. India has expertise in conceptualising such systems and
erecting and commissioning them. However, this sector largely depends on import of
critical hardware and associated software. Large projects are implemented with C&I
packages that are imported without any knowledge of design. Thus, this, in most cases,
leads to higher initial cost and maintenance costs in the long run.
The Department of Electronics is trying to support this segment, especially the SME
sector, through its Industrial Application Programme, by providing proven indigenous
technologies wherever possible. A large collaborative programme on Intelligent
Transportation System, which includes various technology modules for application in the
road transportation sector, was launched during FY10.
In FY11, production in this segment was an estimated ` 181.9 bn, as against ` 151.60 bn
in FY10, a growth of 20.0%.

3. Computer hardware
India is one of the fastest-growing hardware markets in the Asia-Pacific region. Most of
the prominent global vendors have a strong presence in the Indian market. The BFSI
(Banking, Financial Services and Insurance), telecom, ITeS (Information Technology
enabled Services), manufacturing verticals, Small & Medium Enterprises (SMEs), eGovernance and households are the key demand verticals for this segment.
Domestic production in the computer hardware segment for FY11 is estimated to have
remained almost unchanged at ` 149.70 bn compared with FY10. According to the
Department of Electronics, this could be attributed to decelerating growth in exports,
substitution of domestic production by cheaper imports and rising input cost. However,
within this segment, domestic sales of PCs are estimated to have grown at 12% in FY11
to 9.7 mn units; notebook sales are estimated to have grown 40% and desktop sales
12.7%.
Going forward, expanding e-governance and social programmes, rise in PC sales owing
to increased access, broadband penetration, awareness and affordability of technology,
and increasing notebook sales are expected to drive growth for this segment. With
significant IT adoption plans on the anvil by the government as well as the corporate
sector, the IT systems and hardware market is expected to expand rapidly in coming
years.

4. Strategic electronics
The strategic electronics segment includes satellite-based communications, navigation

and surveillance, underwater electronic system, infra-red based detection and ranging
system, disaster management, internal security system and GPS-based vehicle tracking
system. The estimated production figure for this segment for FY11 is ` 76.80 bn, a
growth of about 10% compared with FY10.
Strategic electronics goods are often used by the defence and paramilitary forces. Owing
to the need to maintain national and energy security and growth in the domestic economy,
Indias defence, aerospace and nuclear sectors are expected to grow substantially.
According to the report of the Task Force for the IT, ITES and Electronics Hardware
Manufacturing Industry, India is expected to be one of the top five markets for defense
equipment by 2015, driven by geo-political considerations. Moreover, focus by
commercial aircraft manufacturers on low-cost countries is expected to generate growth
in the aerospace market in emerging markets in general and India in particular. The
civilian nuclear agreement between the US and India will enable commerce and
cooperation, in particular allowing India to collaborate with global companies on nuclear
projects, driving the growth for this segment.

5. Communication and broadcasting equipment

Communication technology is increasingly being recognised as a key driver for economic
development. Digital exchanges, transmission equipment, microwave transceivers,
satellite communication terminals, optical fibre communication equipment, and two-way
radio communication equipment come under the purview of this segment. India has also
emerged as the fastest-growing telecom services markets in the world, which has boosted
the telecom electronics and equipment manufacturing segment. Moreover, India is
considered one of the fastest growing markets for global telecom electronics and
equipment and vendors such as Alcatel- Lucent, Ericsson, Motorola and Nokia have
established their operations in India. In coming years, a growing telecommunications
market, underpinned by an increasing subscriber base, growth in rural mobile telephony
and increasing broadband penetration and connectivity would drive growth for this
segment.

During FY11, the communication and broadcasting equipment segment is estimated to

have grown 5% y-o-y to ` 325.50 mn.

6. Electronic components
The electronics component industry caters to consumer electronics, telecom, defence and
IT sectors. This industry produces: semiconductors; picture tubes; monitor tubes; diodes
and transistors; power device;, ICs; hybrid micro-circuits; resistors; capacitor;,
connectors; switches; relay;, magnetic head;, DC micro motors, and tape deck
mechanism, PCBs, crystals, loudspeakers and hard and soft ferrites. In FY11, production
of electronic components is estimated to have increased 10% at ` 149.70 bn compared
with the previous year.
Growth for the electronic components segment is driven by increase in domestic
consumption of IT products by residential, commercial and enterprise customers. Further,
e-Governance initiatives of the government will boost demand for electronic components.
Strong consumer demand for products such as TVs, white goods, air conditioners and
automobiles, availability of skilled manpower, increase in government spending on
strategic verticals such as defence and aerospace, the major users of electronic
components, coupled with e-governance initiatives and developmental plans, such as the
UID project and MGREGA scheme, are key growth drivers for this segment.
Further, the opportunity for supplying hardware and services to the aerospace, defence
and nuclear markets both domestically and globally by the private sector is immense as
these markets have been largely catered to by government agencies.

Strong growth in exports

A significant portion of the domestic production of electronic goods is consumed in the Indian
market and only a small part is exported. Exports of electronic goods industry in India constitutes
around 21% (average share during FY06-FY11) of the production. Exports of electronic goods
used to be meager, but have picked up during the past few years. The surge in exports of
communication and broadcasting equipment contributed to the recent growth in exports. The
Asian (excluding Middle East) and the European markets are the largest export destinations for

the electronic goods industry. The share of the US, which was significant at around 29% during
FY06, has come down over the years. Share of exports to Africa and the Middle East has
increased significantly in the past few years.

Major growth drivers for the Indian electronic goods sector

Growth in per capita income and corporate spending on electronics

Governments focus on infrastructure

Transformation of electronics goods from an aspiration to a utilitarian need

Rapid technological obsolescence creating demand for newer products

Availability of affordable products for the lower-income groups

Key challenges in the electronic goods sector

Limited preferential market access for local companies resulting in excessive import of
low-cost products

Limited R&D focus

Unfavourable tax structure

Inflexible labour laws

Limited focus on value addition and exports

Government initiatives

The Government has identified electronics hardware as a thrust area and has been taking a
number of steps regularly to promote this industry. It introduced a Special Incentive Package
Scheme (SIPS) in 2007 to attract investments for setting up semiconductor fabrication and other
micro and nanotechnology manufacturing industries in India. Under SIPS, the Department of
Electronics had received twenty six applications (as of Mar 2010) seeking financial assistance.
Various initiatives for promotion of technology innovation and commercialisation of electronics
and IT have been undertaken. In 2008, the Department of Electronics had launched a scheme for
Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics and
ICT to provide financial support for nurturing techno-entrepreneurs as well as for strengthening
technology incubation. Currently, 17 institutions are being supported under the TIDE scheme.
Outlook
This industry has significant potential to develop and manufacture electronics hardware for the
global market and increase its global share. According to the Report of the Task Force for IT,
ITES and Electronics Hardware Manufacturing Industry, electronics hardware production for
domestic consumption is estimated to increase from US$ 16 bn in 2009 to US$ 85 bn in 2014
and further to US$ 320 bn by 2020.
Electronics hardware exports are estimated to increase from US$ 4.4 bn in 2009 to US$ 15 bn by
2014 and US$ 80 bn by 2020. However, to achieve this export growth, Government of India has
emphasized the need to focus more on designing and manufacturing global products, reaching
out to the rural areas in India and the emerging markets. Moreover, given the growing demand
for electronics in the country and the fact that most of it is currently being met through imports,
there is a huge economic opportunity in developing the Electronics System and Design
Manufacturing (ESDM) industry in India.
There is also greater need for India to focus on research and development and on providing more
thrust to the semiconductor industry. Some aspects that would need attention are cluster
development, effective supply chain and logistics systems, and inventing mass-products that
matter to rural and bottom of the pyramid segments. Going forward, demand for appliances and
energy-efficient consumer electronics is expected to be high and the domestic producers should
leverage the opportunity to enhance growth.
https://www.dnb.co.in/Axis_bank_SME_awards/ElectronicGoods.asp

Worldwide market for consumer electronics

grows thanks to Ultra HD TV and Bluetooth
09.09.2015

GfK findings on the global consumer electronics market first six months of 2015.
Nuremberg, September 2, 2015 Because the market for consumer electronics is still in
upheaval due to consumers changing listening and viewing habits, sales value rose in the
first six months of 2015. Innovative solutions, such as Ultra HD technology, sound bars or
multi-room systems are the primary drivers of growth potential in the TV and audio
segment. Positive momentum for the entire TV market is visible in all regions of the world
except for Europe. These are GfK's findings on the global consumer electronics market,
published to coincide with the IFA 2015 trade fair in Berlin.
GfK expects a sales value of 185 billion globally for the total consumer electronics market in
2015. That is approximately 9 billion more than in the previous year.
TV market: Ultra HD is the growth segment
The worldwide TV market is in a consolidation phase in 2015. In 2014, 234 million LCD TVs
were sold; without a major event such as the FIFA World Cup this year, there will be
approximately 4 million fewer sold. This represents a decrease of nearly 2 percent. However, the
individual regions are developing differently. The strongest growth relates to the Middle East and
Africa with 5 percent. But also in Asia as well as North and South America, positive impulses for
the total TV market are visible. In 2015, a total of 35.3 million LCD TV sales are expected in
Western Europe. That is approximately 6 percent less than in 2014. There is a significant sharp
decline in the Eastern European market including Russia and Ukraine. It is expected that sales in
this region will decline by 7 million LCD TV sets.
In contrast, the Ultra HD TV segment is developing positively in all regions. Ultra HD makes it
possible to display a razor sharp picture on an even larger diagonal screen size because it has a
four times higher resolution than the previous full HD TV. Over 28 million Ultra HD TVs are
expected to be sold in 2015, the largest portion of which will most likely be in China. 40 percent
of households there already have such a TV. In Western Europe, GfK expects sales volume of
nearly 4 million units. More than one in every ten TVs sold in Western Europe will be an Ultra
HD set. In terms of value, Ultra HD is even more significant. Already 10 percent of all TVs sold
in Germany in June 2015 were Ultra HD TVs, and these were responsible for a quarter of TV
sales value.
In addition to Ultra HD, there are other developments that make purchasing a new TV
interesting. The size of the screen continues to be a true selling point. In 2010 in Europe, the
average size of a new TV was 31 inches (79 cm) and in 2015 it is 38 inches (97 cm). But at the
same time, the average price dropped. Therefore, the consumer gets more for less money.
Purchase incentives include further enhanced picture quality, OLED TVs, curved units, open

operating systems such as Android, Tizen, Firefox OS or Web OS and other technological
developments that enable even more consumer entertainment.
And everyone is still talking about smart TVs. Particularly the combination with video on
demand gives consumers access to non-linear television. This allows the viewer to retrieve
internet content at any time. Every second new TV sold in Europe is a smart TV. In total, these
units account for nearly three quarters of its sales value.
However, with the increasing availability of video on demand portals on smart TVs, game
consoles, or media players, the optical drive becomes increasingly unnecessary. Accordingly,
GfK predicts that worldwide only 57 million DVD and Blu-ray players/recorders will be sold
this year. This represents a decline of almost 10 percent compared to 2014.
Sound bars and sound bases provide a cinema atmosphere at home
Regardless of whether they are placed under or in front of the television, sound bars currently
provide an increasingly better sound experience and therefore a cinema atmosphere in the living
room. Worldwide 11.5 million sound bars were sold in 2014. That was 64 percent more than in
the previous year. The demand should rise again significantly in 2015. GfK expects global sales
volume of 14.3 million units, which would represent an increase in sales value of 21 percent
compared to the previous year. In particular, the regions of Latin America and Central and
Eastern Europe are among the winners this year. But also in Western Europe, the demand for the
popular alternative to the traditional home theater solution is expected to remain unrestrained.
In the first six months of 2015, the demand for sound bars in Western Europe clearly grew and
recorded a sales growth of 29 percent with more than 1.3 million units sold. In particular, sound
bar systems with an external subwoofer still enjoyed great popularity and were responsible for
nearly 60 percent of sales value in the sound bar segment in the first six months of the year. With
this segment a Bluetooth connection is instrumental in the purchase decision, as it is in the entire
audio segment. If your own music collection is stored in MP3 format on a smartphone or tablet
or if youre using one of the increasingly popular online music streaming services, it is important
that the transmission to the sound system should be carried out as quickly and simply as possible.
In the course of the period from January to June 2015 already, nearly 80 percent of all sound bars
sold had a Bluetooth function.
Home theater systems suffer due to the success of sound bars and sound bases
Due to the success of sound bars and sound bases, the demand for typical home theater systems
with integrated DVD or Blu-ray players worldwide shrunk last year by approximately 23 percent
to only 8.4 million units. For the current year, GfK expects a further decline of 13 percent to 7.3
million units. However, this highly negative trend mainly affects mature markets such as Western

Europe or the developed regions of Asia. In Eastern Europe and Africa (sub-Saharan Africa), the
market has a less steep decline, minus11 percent and minus 9 percent. So far, sound bars only
play a minor role in these markets.
The prospect of the Ultra HD successor to Blu-ray discs gives reason to hope. Potentially it
might be introduced by the holiday shopping season creating demand for new playback devices.
The first products are expected to be launched simultaneously with the IFA.
Sales volume of AV receivers drops significantly
Because GfK has primarily monitored this category in the Western European markets, detailed
statements can be made regarding this region only.
After a slight decline in sales last year from 790,000 to 727,000 units, this trend continued in the
first six months of 2015 (18 percent decrease). A possible cause might be the trend towards
active TV speakers. However, from a technical standpoint in the recent past, there was little
pressure on the receiver enthusiast to change hardware. Many devices from the 2014 collection
lacked full support for the new Ultra HD standards (HDMI 2.0 and HDCP 2.2). This should no
longer be an issue with the new models at the IFA. This could stimulate some demand for the
holiday shopping season.
Music systems and hi-fi
Last year, sales value for music systems and hi-fi decreased by approximately 4 percent. GfK
expects a significant stabilization this year. According to the forecast, approximately 18.6 million
units should be sold. Sales value is expected to rise by approximately 6 percent, although the still
highly sought-after Bluetooth speaker could cannibalize the market. Even music systems are
becoming increasingly smarter, more linked and thus a bit more expensive on average. The socalled multi-room systems are popular particularly in Northern and Central Europe (sales value
increased by 42 percent in the first six months 2015). On the other hand, in Southern and Eastern
Europe the classic stereo continues to dominate. But even this device has Bluetooth connection
thanks to the smartphone era.
In the emerging markets, especially South America, the audio buyers are particularly focused on
power. Systems with 1,000 plus watts make up about 40 percent of sales value.
In general, the current situation in the states of the former Soviet Union is very difficult. The
market has suffered a massive collapse due to the conflict between Russia and Ukraine, as well
as the related trade embargo.

http://www.gfk.com/de/insights/press-release/worldwide-market-for-consumerelectronics-grows-thanks-to-ultra-hd-tv-and-bluetooth-2/