UAE electronics market seen hitting $2.8bn in 2010

The UAE's consumer electronics devices market is projected to hit $2.8bn in 2010, increasing to $3.7bn by 2014, Business Monitor International has said, with mobile phone penetration levels exceeding 250%.

The increase will be driven by the popularity of new electronic devices such as LED and 3G TV sets, 3G mobile handsets, smartphones, feature-rich notebooks and Blu-ray format DVD players, BMI said in its latest report.

In 2010, modest single-digit growth in consumer electronics sales is forecast, following a market pick-up in the final quarter of 2009, the report added.

BMI said computer hardware accounted for around 57% of UAE consumer electronics spending in 2009.

BMI predicted UAE domestic market computer hardware sales (including notebooks and accessories) of $1.6bn in 2010, up from $1.5bn the previous year.

It added that the compound annual growth rate (CAGR) to 2014 in computer hardware sales in the UAE would be about 8%.

BMI's report said audio visual devices accounted for around 30% of UAE consumer electronics spending in 2009, with annual growth of four percent predicted between 2010-2014 - reaching $1.1bn in 2014.

The roll-out of HDTV broadcasting in the UAE will drive demand for premium TV sets and Blu-ray devices, it added.

Sales of mobile phones in the UAE are expected to grow by five percent to $416m in 2014, with mobile subscriber penetration levels seen reaching 254%.