TV hardware market in Asia worth $22 billion

MUMBAI: The total size of the television hardware market in Asia measures at nearly $22 billion

GfK Asia has released its 2006 year end pan Asian consumer electronics data summary. This highlights the trends in the region's consumer electronics sector. The report includes data from 13 countries overall including China, South Korea, Taiwan and Hong Kong.

For the first time, LCD televisions are the largest television category, equaling 40 per cent of the total market value, compared to conventional televisions (39 per cent), plasma televisions (18 per cent), and rear projection televisions (three per cent).

On a volume basis, LCD televisions out-sold plasma televisions four-to- one in 2006. In all, more than 50 million televisions were sold by retailers in 13 countries across the Asian Region last year. In 2006, 83 per cent of televisions sold in Asia were conventional televisions, a figure that is predicted to slip to 75 per cent in 2007.

GfK Asia commercial director of consumer electronics Steven Kaiser says, "The future is certainly bright for LCD screens in Asia. We expect that LCD televisions to continue a strong advance in 2007 and see a regional growth rate of 72 per cent for volumes in the year ahead."

Markets such as the Philippines, Thailand, and Vietnam that had seen relatively low LCD television volumes in 2005 exhibit robust increases in 2006 as the product gains a solid foothold throughout the Asian Region.

Further evidence of the product's vitality is seen in China where more than four million LCD televisions are reported sold at Chinese retailers in 2006 and is forecast to reach eight million units in 2007.

DVD Player and Recorder: DVD recorders enjoy a banner year in 2006. The market value of DVD recorder retail sales across 12 countries in the Asian Region is nearly $500 million, representing 22 per cent of the overall DVD player market. On aggregate, more than 23 million DVD players are reported sold in 2006 in the Asian Region. The DVD player market is forecast to hold steady in 2007.

Kaiser explains, "With the two next-generation hi-definition video disc formats finally becoming a reality, it is not surprising to see current-generation DVD players reaching a natural sales plateau. Yet, despite the impending 'hi-def' future, DVD recorders are actually flourishing in today's market by offering Asian consumers a strong value proposition: a rich feature- set at ever-better price points."

Audio Home System and Home Theatre System: In the audio sector, a China boom is expected for home theatre systems next year when the market volume is forecast to increase by 33 per cent in 2007.

The total market volume of audio home systems and home theatre systems combined in 2006 stands at just below four million units across the Asian countries measured. Regionally, no growth is forecast for home audio products in 2007.

MP3 Digital Portable Audio Player and MP4 Digital Portable Video Player: More than 20 million digital portable multimedia players (digital portable audio players and digital portable video players combined) are reported sold in retail shops. Approximately six million of these devices feature playback of digital video; the number of these devices is forecast to rise to nine million units in 2007.

Kaiser adds, "Such is the pace of technology. The digital portable video player segment did not exist two years ago. Today, video playback is a feature on nearly one-third of all players sold in the Asian Region. We expect memory prices will continue to drop and video content will become even more accessible, positioning digital portable video players as the likely successor to portable video disc players in the


Portable Radio Player: The market for portable radio players is currently tracked in 11 Asian countries. The market size is measured at nearly $300 million. China and Indonesia have the largest base of consumers for portable radio players in the Asian region, with the total market volume measured as 2.6 million units and 1.5 million units respectively in each country in 2006.

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