Saudi Arabia's consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is projected at around $3.8 billion in 2010, the “Saudi Arabia Consumer Electronics Report Q4 2010” report released by researchandmarkets.com on Wednesday said. This is expected to increase to $4.8 billion by 2014, driven by growing popularity of LCD TV sets, notebook computers and other key products, and by ongoing expansion of the electronics retail sector, it said. Saudi Arabia's addressable market for digital devices is forecast to grow at a compound annual growth rate (CAGR) of 6.0 percent, driven by a steadily growing economy. “Saudi Arabia is forecast to be one of the strongest economies in the MENA region going forward, and the country will continue to be a lucrative market for consumer electronics vendors. Youthful population demographics, a regional economic boom and a buoyant real estate sector will all drive retail growth, with per capita consumer electronics spend reaching around $168 by 2014,” the report said. BMI forecast Saudi domestic market computer hardware sales (including notebooks and accessories) of $1.8 billion in 2010, up from $1.6 billion in 2009. Computer hardware CAGR for the 2010- 2014 period is forecast at about 7 percent, with stronger demand for notebooks the main factor driving retail segment growth. Computer hardware accounted for approximately 46 percent of Saudi consumer electronics spending in 2009. Saudi Arabia's addressable AV device market is forecast at $1.2 billion in 2010. The market is expected to grow at a CAGR of 4 percent between 2010 and 2014 to reach a value of $1.4 billion, with increased sales of flat panel television sets in 2009 compensating for a contraction in overall TV set demand, the report further said. AV devices accounted for about 32 percent of Saudi consumer electronics spending in 2009. Moreover, handset sales are expected to grow at a CAGR of 7 percent to $1.1 billion by 2014, as mobile subscriber penetration reaches 214 percent, the report noted. Sales will be dominated by the replacement market, with growing demand for smartphones, PDAs and 3G handsets as the proportion of 3G users rises to over 38 percent of the mobile subscriber base, it added. Mobile handset sales accounted for 22 percent of consumer electronics spending in Saudi Arabia in 2009.
