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CE Market in the UK is Expected To Slow
Aug 28, 2008
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The UK market for televisions; DVD and video players/recorders; digital, cable and satellite receiving equipment; camcorders; non-portable audio equipment; and portable audio equipment is expected to slow, according to Research and Markets.

According to the firm, the televisions sector remains by far the most valuable sector of the market and also showed the largest increase in value in absolute terms between 2003 and 2007. However, digital, cable and satellite receiving equipment was by far the fastest-growing sector in percentage terms over the period.

Sales of televisions have been boosted by the trend towards larger screens, as well as the trend towards digital and high-definition (HD) sets. However, the sector's value growth has been reduced by price erosion. Sales growth in the DVD and video players/recorders sector has been hampered by falling sales of video-cassette recorders and non-recording DVD players, while sales of digital, cable and satellite receiving equipment have been boosted by the impending digital switchover in the UK, together with the growing popularity of Freeview and improvements to content and services.

Camcorder sales have been boosted by the spread of digital technology. However, falling average prices and the decline of analogue products have caused the sector's value to stagnate. Audio equipment has performed well, with both the portable and non-portable sectors showing sales growth. MP3 players, in particular, have driven sales of portable audio equipment.

Growth in the UK market for brown goods is expected to slow between 2008 and 2012, the firm says. A credit crunch means that consumers will be less likely to purchase high-ticket items such as televisions. Sales of video-cassette recorders will be negligible by 2012, the firm says. Sales of camcorders will also decline, as analog products become obsolete, prices fall and competition is experienced from other products with recording facilities. Continuing sales growth is forecast for digital, cable and satellite receiving equipment and for both portable and non-portable audio equipment.

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