The European market for consumer electronics will likely contract in 2009 by around nine per cent and reach a total turnover value of E62 billion according to international market research institute EITO. This is the first reduction in the market for consumer electronics since the middle of the 1990s.
"The reason for the fall has less to do with reduced consumer spending as a result of the economic crisis", said EITO Chairman Bruno Lamborghini. "The switch to digital in consumer electronics has led to strong growth rates in recent years. This process is now nearly complete. In addition, there are no major sporting events this year like the European Football Championship and the Olympic Games in 2008."
In markets which for the most part have reached saturation, competition will increasingly be determined by prices. In 2009, 95 per cent of the turnover in consumer electronics is being produced by digital products and only 5 per cent by analogue equipment.