Dubai electronics market size is expected to grow at 4.7 per cent over the next four years and may exceed $3 billion (Dh11 billion) by 2020, the Dubai Chamber of Commerce and Industry (DCCI) said in a statement on Sunday.
Despite mounting pressures from low oil prices, and uncertainties, Dubai retail sales activity has witnessed continued growth due to rising population and steady inflow of tourists.
According to the analysis based on latest UAE retail sales data from Euromonitor, the DCCI said the portable consumer electronics sub-category is expected to keep its lead with a 2020 sales forecast of $1.27 billion. Also, the computers and peripherals sub-category is forecasted to retain its size at $937 million, whereas in-home consumer electronics are expected to gain some traction to reach $900 million; while no growth will take place under in-car entertainment sub-category with a sales forecast of $23 million.
In terms of future growth, in-home consumer electronics is forecast to lead with a Compound Annual Growth Rate (CAGR) of 7.6 per cent between 2015 and 2020, portable consumer electronics is forecast to follow with a CAGR of 6.4 per cent. Growth is set to cool off in the computer and peripherals sub-category with a forecast CAGR of 0.9 per cent; while in-car entertainment is only expected to retain its size with a CAGR of 0.7 per cent over the forecast period.
Market observers, according to the DCCI, indicate that the main trend seen last year in consumer electronics sales is the gradual move towards more compact and multifunctional devices, especially those that offer internet connectivity, with consumers’ lifestyles becoming increasingly highly mobile and fast paced.
As a result, items such as tablets and smartphones are enjoying solid growth in sales. However, the increasing quality, processing power, and range of applications offered by these devices are taking market share from many other items, such as digital cameras, portable MP3 players, DVD players, laptops and desktops.
Dubai’s electronics and appliance specialist retailers continue to be the leading channel in consumer electronics due to their advantage in having a wide product selection and price range, as well as offering expert advice and tailored recommendations.
Hypermarkets are also showing strength, with leading chains such as Carrefour and Lulu Hypermarkets competing to offer wide product ranges at very reasonable prices. The strong presence if shopping-malls in the emirate has limited the size of internet retailing channel. However, store based electronics retailers are realising that having a complimentary internet retailing site is becoming increasingly important to driving sales of consumer electronics in their stores, with many consumers checking prices and models online before or during shopping trips, the DCCI said.