JEDDAH: 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 $4.2 billion in 2011, Business Monitor International's "Saudi Arabia Consumer Electronics Report Q3 2011 said. This is expected to increase to $5.3 billion by 2015, driven by the growing popularity of flat-screen TV sets, smartphones, notebook computers and other key product groups. It will also be driven by ongoing expansion of the electronics retail sector. In 2011, wage hikes and government hand-outs are expected to support spending on big-ticket lifestyle products such as smartphones and flat-screen TV sets. Saudi Arabia's addressable market for digital devices is forecast to grow at a CAGR of 6 percent, driven by steady economic growth. BMI estimates per capita spending on consumer electronics will be $158 in 2011 and rise to $184 by 2015. Youthful population demographics, a growing population, regional economic boom and a buoyant real estate sector will all drive retail growth. Computer hardware accounted for approximately 45 percent of Saudi consumer electronics spending in 2010. BMI forecasts Saudi domestic market computer hardware sales (including notebooks and accessories) of $1.9 billion in 2011, up from $1.8 billion in 2010. Computer hardware CAGR for the 2011-2015 period is forecast at about 7 percent, with stronger demand for notebooks the main factor driving retail segment growth. AV devices accounted for about 33 percent of Saudi consumer electronics spending in 2010. Saudi Arabia's addressable AV device market is forecast at $1.4 billion in 2011. The market is expected to grow at a CAGR of 6 percent between 2011 and 2015 to reach a value of $1.7 billion, with vendors looking to new products such as 3D and LED TV sets to drive growth. Mobile handset sales accounted for 21 percent of consumer electronics spending in Saudi Arabia in 2010. Handset sales are expected to grow at a CAGR of 6 percent to US$1.1 billion by 2015, as mobile subscriber penetration reaches 211 percent. Sales will be dominated by the replacement market, with growing demand for smartphones and 3G handsets, as the proportion of 3G users rises to over 38 percent of the mobile subscriber base.
