By Claire Kerrison
Market Analyst, Futuresource Consulting
The Q1 2014 worldwide projector market grew 7 percent in volume compared to the same period a year ago, to 1.87 million units, according to the latest round of research from Futuresource Consulting. In value terms, the market also grew by 7 percent to reach $2.3 billon. An increase in sales to installation and large venue applications, which are demanding increasingly brighter solutions, helped to boost the market in value terms.
Significant price drops in 1080p and WXGA drove worldwide B2C sales beyond the Q4 gifting period. This trend was most prevalent in the US, Japan, France and Germany. Global sales of 1080p home display solutions increased 46 percent ‘YoY’, to 126k units.
This quarter showed an emerging niche: ultra/short throw 1080p, with sales growing 546 percent worldwide ‘YoY’, to 4,400 units. The segment is being driven by an increase in dedicated home display solutions. Due to the benefits offered by short-throw in the home, it is expected this segment will continue to see strong growth throughout 2014.
The default ‘mainstream brightness’ shifted to the 3000-3499 ANSI lumen section in Q1 as the trend towards higher brightness solutions continues. The 3,000 – 3,499 ANSI lumen category now has 42 percent worldwide market share, an increase of 22 percent points YoY.
Q1 2014 EMEA Projector Market Grows 11 Percent ‘YoY’ in Volume, 14 Percent in $ Value
The Q1 2014 the EMEA projector market grew 11 percent in volume compared to the same period a year ago, to 587k units. In value terms, the market grew by 14 percent to reach $262m.
Price declines of 1080p, coupled with a fluid channel and the start of sell-in promotions for the World Cup combined to propel B2C volumes post the gifting period. Sales of 1080p hit 71k units, compared with 42k units in Q1 2013, a ‘YoY’ increase of 66 percent (B2B and B2C).
The trend towards higher brightness solutions continues, the 3000-3499 ANSI lumen section is now the default ‘mainstream brightness’ in EMEA with a 40 percent market share, (an increase of 27 percent points ‘YoY’).
The high-end segment continues to enjoy growth, fuelled by an increase in solutions for this segment amassing demand across multiple verticals. This rise helped the overall market value in EMEA to rise ‘YoY’, to $262m.
Shipments in Eastern Europe amounted to 95k units, representing 16 percent growth ‘YoY’. Volumes were bolstered by significant education tenders in Slovakia and Baltic states. Price declines of 1080p led to a rise in sales of Home Display products, with the segment now boasting 10 percent share of the overall market, an increase of 4 percent points ‘YoY’. The Russian market remained flat ‘YoY’ as political difficulties in the region impede B2B sales, as well as restrict government budgets to education.
Middle East and Africa
Middle East and Africa showed growth of 25 percent ‘YoY’, with Q1 shipments at 133k units. The rise in volume can be attributed to significant tenders in UAE, Saudi Arabia and Turkey, as well as a strong run-rate. In an attempt to win brand share, certain vendors have been very aggressive on pricing. Whilst price declines have boosted run-rates, it has also resulted in a ‘YoY’ drop in ASP of -4 percent, and only 7 percent ‘YoY’ growth in market value, at $95.5m.
Shipment volumes in Western Europe hit 359k units in Q1. The market benefitted from a fluid channel, which, coupled with significant price declines of 1080p and the beginning of sell-in promotions for the World Cup, led to the market increasing 11 percent ‘YoY’. Market share of 1080p rose 4 percent points ‘YoY’, to 16 percent. France and Germany benefited most from such strong retail sales, with ‘YoY’ growth of 19 percent and 17, respectively.
Q1 2014 APAC Projector Market Grows 5 Percent ‘YoY’ in Volume, 4 Percent $ in Value
Projector shipments to APAC grew 5 percent in volume ‘YoY’, to 731k units. The market grew 4 percent in value, to reach $905m.
The Q1 market was propped-up by strong growth in Japan and China. Japan boasted growth of 14 percent ‘YoY’ with 82k units, fuelled largely by price declines in 1080p and WXGA. In the installation market, rental and staging companies are starting to replace inventory, driving volumes in the higher brightness segments.
The China market grew by 10 percent ‘YoY’, reaching 364k units. As in Japan, the market benefited from price declines of 1080p – which now attributes to 4 percent of the market (15.5k units – growth of 38 percent YoY). A strong run-rate of entry-level B2B products for the corporate sector also contributed to the growth.
The Indian market declined -19 percent YoY in Q1. National Elections have resulted in significant government tenders being suspended from January to June – not only is this impacting sales to education, but is also affecting B2B sales as the consequent economic uncertainty impacts budget cycles. Sales to India are not expected to pick-up until late Q3.
As in EMEA, the trend towards higher brightness solutions continues with the 3000-3499 ANSI lumen section now the ‘mainstream brightness’ in APAC with a 42 percent market share, (an increase of 17 percent points ‘YoY’).
Q1 2014 Americas Projector Market Grows 7 Percent ‘YoY’ in Volume, 6 Percent in $ Value
Shipments to the Americas rose 7 percent ‘YoY’ in Q1 2014, to 548k units. In value terms, the market grew at a similar rate, at 6 percent ‘YoY’, to $736 million.
The market was boosted by significant growth in Mexico, Brazil and the US. Mexico recorded growth of 34 percent ‘YoY’, to 50k units. As seen throughout the world, the Mexico market was also boosted by significant price drops in 1080p.
Brazil witnessed growth of 33 percent, to 59k units in Q1 with Education sales propelling volumes. The forthcoming World Cup is also boosting sales to installation/large venue — the 3k — 5k ANSI lumen sections now attribute 45 percent of the market, compared to 15 percent over the same period a year ago.
Market volumes in the US increased a modest 2 percent ‘YoY’ this quarter, to 316k units. In terms of value, the market is flat ‘YoY’ at $523 million. The mainstream market is being impacted by high penetration, an increase in usage of tablet computers in education (reducing the need for replacement central display) and delayed replacement cycles in the corporate sector due to continuing economic difficulties. 1080p was the key growth area — with B2B and B2C sales growing 41 percent ‘YoY’, to 42k units.