The APAC projector market expanded by nearly 9 percent in volume in Q3 2014, to reach 964,000 units, equating to a 7 percent increase in value, up to $1.2 billion, according to the latest quarterly projector market update from Futuresource Consulting.
“Indonesia and India performed well during the quarter, with close to 47 percent and 25 percent year-on-year growth respectively,” says Claire Kerrison, market analyst, Futuresource Consulting. “However, this increase cannot be attributed to any significant tender wins, rather an increase in run-rate of entry-level SVGA product. Both countries have recently undergone national elections, which somewhat stalled SME purchasing cycles.
“Outstanding growth in a number of countries was somewhat offset by weaker growth in China, which experienced an uptick of just 5 percent YoY.”
The mainstream B2B segment in China continues to be hampered by the impact of low-cost flat panel displays from domestic vendors. Feedback from research carried out for this study indicates that such brands receive strong support from government bodies, resulting in heavily discounted ASPs. The segment’s volumes grew just 7 percent YoY in Q3, to 366,000 units, despite the country being heavily under-penetrated.
1080p and Ultra-Short Throw
Growth of 1080p product in B2B and B2C channels continues to surge, up 52 percent YoY, and now represents 4.6% of market volumes – still to the detriment of XGA, which is largely failing to remain competitive.
Ultra-short throw (UST) sales grew 22 percent YoY to 55,000 units, fuelled by burgeoning demand in China, Japan and India – particularly from private educational establishments.
EMEA Projector Market Results
The EMEA projector market expanded by 2 percent in volume and value in Q3 2014, to reach 584,000 and $676 million. However, this growth was largely derived from the installation and large venue segment, where sales of 5-7 klm product soared nearly 40 percent over the quarter to reach 13,000 units, largely fuelled by the successful launch of products by Epson, NEC and Panasonic.
Decline in XGA volumes was less than expected, at less than 10 percent YoY in Q3, resulting in a drop of four percentage points in market share, to 32 percent. XGA sales were bolstered by several brands distributing heavily discounted end-of-line product to smaller Middle Eastern states and sub-Saharan Africa.
Seasonal education purchasing in Q3 saw sales of interactive touch UST projectors rise 867 percent to 17,000 units, accounting for 15 percent of B2B short throw sales, compared to less than 2 percent a year ago. Although EU5 and the Nordics still account for the majority of such sales, this quarter saw significant demand from smaller Gulf Cooperation Council states and the Czech Republic.
Western Europe On the Rise
Shipments in Western Europe were up 3 percent YoY, with value growing by 3.6 percent.
“The mainstream B2B and dedicated home cinema segments stagnated due to slow channel movements following strong World Cup promotional activity in H1,” says Kerrison, “with the majority of growth being driven by the installation and large venue segment, sales of which grew more than 21 percent year-on-year.”
Italy witnessed growth of 77 percent across the quarter, with volumes driven by UST tender activity. Recent quarters have seen increased spend on IWBs and UST projectors, with strong shipments set to continue throughout Q4 2014.
“Sales of 1080p product continue to rise, up nearly 31% year-on-year, with demand for 1080p within mainstream B2B channels strengthening and volumes up 104% year-on-year. 1080p now accounts for nearly 10% of the segment’s volumes. Feedback from the channel suggests that this is very much the result of end-user pull, rather than vendor push,” says Kerrison.
Eastern Europe Feeling the Russian Squeeze
Market volumes in Eastern Europe declined 2.3 percent in Q3, with value falling by 2.1 percent to 95 million. Volume decline was largely confined to Russia and Ukraine as the ongoing macro political issues continue to impede the market.
Excluding Russia and Ukraine, sales in Eastern Europe increased by nearly 24 percent YoY, with value up 33 percent. The region benefited from several project deliveries, namely in Hungary, Poland and Romania. Moreover, run-rates across the region were strong, driven by the availability of cheap end-of-line XGA product.
Middle East and Africa
Shipments in MEA were up 2.6 percent, though with value declining of 1.8 percent.
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