The European Consumer Electronics Market is booming in 2005, according to a study from EITO (European Information Technology Observatory), thanks to innovative technologies, and a shift toward portable, mobile devices, such as MP3 players or game consoles that saw a triple-digit growth. Overall, the market value grew at a pace of 9.2%, to reach €54.2 billion, the study asserts.
Market globally up...
Yet, there are loosers in this tidal wave-like move; Analogue products are experiencing a real decline, representing now less than a quarter of the market; They leave ground to flat screens (mainly plasma and LCDs). The cathode ray tube TV, VCR and tradtional Hi-Fi market volume decreased by 29%, down to only €6.1 billion.
However, EITO chairman Buno Lamborghini can safely stress that "Digital devices are offering a substantial increase in value for the user", adding that "More storage, higher capacity and better quality in image and sound are convincing arguments for purchase."
As a result, MP3 players achieved the highest growth at plus 98% with market estimated at €2.5 billion. Their huge storage capacity and portability have set the pace for a change in behaviour in the direction of mobile devices that can transfer high quality image and sound. In the TV industry, cathode ray tubes are behind flat screen TVs for the first time. According to EITO, the Western European market grew by 51% and its global value has reached a volume of almost €13 billion. Game consoles have also benefited from this high demand at plus 26%, resulting in a market volume of €2.2 billion.
And prices globally down...
However strong the demand, consumers benefit from deteriorated price conditions with the market value progressing (sometimes much) less than volumes. This is demonstrated in the flat screen segment, where an incredible 114% increase in volumes will translate in 51% growth in revenues only, at €10 billion. In some segments, like digital camcorders, there's even a visible decline in the market financial value (7%) despite a 12% growth in unit sales. "In all segments, the market value is increasing less rapidly than the unit sales", says Lamborghini.
The UK is still the biggest market in Europe at €12.7 billion despite a "moderate" 9.1% growth, thanks to the "early adopter" mentality of the Britons. Then comes Germany at €12 billion (+11.4%), France (+6.6%) and €9.4 billion, Italy, which has achieved the highest growth (+13.6%) and reaches €6.0 billion, Spain (+12%) at €5.5 billion.