Reading time ( words)
Almost every country witnessed a rise in projector sales in 2014, with volumes for the year up 8% year-on-year (YoY) to 8.3 million units. According to Futuresource Consulting, the market benefitted from several factors: strong promotional sales around the World Cup; increased demand for SVGA product (not only in developing countries but also in key established ones as the quality and connectivity of these models improve); significant growth in adoption of 1080P, both in the home and office (as an influx of new entry-level models cause the ASP to decline 17% to just $1600) and the delivery of several large projects (namely in Mexico, MEA and China).
1080p sales attributed to 12% of the market in 2014, up 3% points from 2013 (a rise of 48% in volume terms). However, the escalation of this resolution has been to the detriment of XGA, which lost 5% points YoY, as it fails to remain relevant against falling prices of wider resolutions.
Q4 value was up 2.3% to $2.7 billion driven by a trade-up in brightness levels across the world with the 3-3.5k lumen segment now representing 52% of sales, compared to just 37% in Q4 2013.
Dedicated Home Cinema was the largest growth segment, up 20% YoY in Q4. A strong eretail channel, mainly in Western Europe and the USA helped to drive sales, with key retailers like Amazon offering purchasing incentives to end-users as well as discounted prices. Sales of High Brightness product declined 1% YoY during the quarter, but with many Solid State launches anticipated this year, and demand for higher brightness mounting across multiple applications, this segment is forecast for growth in 2015.
EMEA projector market up 2%
The EMEA Projector market experienced significant growth in 2014 with volumes driven by several factors: strong promotional sales around the World Cup across multiple channel types; a resurgence in demand for SVGA (as the quality and connectivity of these models improve and economies across Southern Europe continue to recover) and a surge in adoption of 1080p product, both in the home and office. The number of 1080p models on the market has increased 10% over the year, with over 280 models now available. The majority of new models have entered at the entry-level of the market, leading to the ASP of a 1080p model dropping 20% in Q4 YoY, to just $1256. This rapid reduction in price has caused demand to sore, with overall 2014 volumes up 61%, to 369,000 units. Approximately 67% of this volume was for use in the home. In fact, Home Display was the largest growth segment in Q4, up 17% YoY. However, 29% of 1080p sales in 2014 were for use in Corporate applications with research indicating that increasing availability of HD content is driving sales, as well as familiarity with the resolution.
EMEA value was down by 2% YoY in Q4, to $772 million due to the declines in WXGA and 1080p pricing. However, value for full year 2014 grew by 7%, to $2.8 billion. The enduring trade-up in brightness can be largely attributed to this increase, with 3-3.5k lumens attributing to 49% of the market in 2014 - compared to just 25% during the previous year.
B2B Short Throw sales were down 3% in Q4, with UK reporting a drop of 13% YoY. The UK Education market has been hit this year by increased demand for IFPD, with the display type being seen as a 'future-proofing' purchase, despite the price premium it incurs.
APAC Projector Market Grows 4% in Q4, to 870,000 units. Value up 3% to $1.1 billion
The Projector market in APAC continues to grow with sales being driven by burgeoning demand in developing countries such as Indonesia and India. Improved distribution networks, coupled with increased government spend following national elections saw these countries grow 24% and 23%, respectively in Q4.
SVGA volumes continue to rise, up 26% YoY to ~200,000 units, as demand for entry-level product mounts - a reflection of improving economies across the region. The projector market in China, which attributes to 57% of the total region's sales, was down -1% in Q4 to 491,000 units. However, this was largely due to a reduced demand for XGA product (down 11%) as the resolution fails to remain relevant amid rapidly falling prices of WXGA and 1080p product and the quality of SVGA models improve. Volume sales of SVGA were up 19% in China in Q4, with 1080p up by a staggering 40% to 26,000 units - an influx of entry-level 1080p models has caused ASPs to decline 15% YoY (to $1890) across the region creating a surge in demand for both home and corporate environments.
An increase in market value of 3.3% in Q4 can be attributed, as in other regions across the world, to a trade-up in brightness levels with the 3-3.5k lumen segment now attributing to 48% of sales (418,000 units) - compared to just 38% in Q4 2013.
Projector Market in Americas Up 2% YoY
Growth in the Americas in Q4 was largely retained to Mexico, which saw volumes rise 38% to 66,000 units. The country is benefiting from latent demand after a slow 2013 and a surge in Education spend, with 2014 witnessing the delivery of significant projects.
The US market was up 1% YoY in Q4, driven largely by sales of Dedicated Home Product which was up 26% YoY. Declines in ASP of 1080P (of 19% to $1325), as well as a very strong eretail channel, helped to grow sales. Growth in 1080p was also witnessed in Canada and Mexico, with the resolution now attributing to 15% of the region's total sales, up 3% points YoY. The rise in value can be largely attributed to an increase in adoption of Interactive B2B Short Throw product, and an increase in High Brightness sales, sale of which were up 38% and 4%, respectively in Q4.