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Breakthroughs that will shape the future of the computer add-ons industry

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Global Computer Peripheral Industry


The world computer and peripheral sector is expected to witness yearly growth of 8% between 2010 and 2015, bringing the market to $245 billion in 2015, reports MarketLine.


Computer peripherals refer to electronic equipment connected to a computer by cables. Common computer peripherals include the keyboard, mouse, printer, scanner and disk drive. The industry is characterized by intense competition, with many companies providing various products and services to improve consumer use of computers. These products can be geared toward home use as with personal computers, and also to the business world as with server computers. The global computer and peripherals industry provides connectivity, be it to link consumers and businesses, or businesses and suppliers.


Regional Market Share


There are more than 400 computer peripheral equipment manufacturing companies operating in the US, reports IBISWorld. Production of peripherals and monitors witnessed 9% yearly growth over the past five-year period. However, price declines dragged growth down. Revenue is forecast to climb by almost 7% to reach close to $20 billion in 2012 due in large part to fluctuating exchange rates affording US-made goods a competitive edge.


India’s computer peripherals market is set to continue recording strong growth over the coming years. NetScribes predicts the country’s computer peripherals industry will witness 20% yearly growth to reach close to $1 billion by 2015. One driving force behind the market is the need to replace obsolete hardware. Other growth factors include a large computer base, rising levels of disposable income, falling prices, state participation and a mature e-commerce market. Demand for computer peripherals will continue to grow due thanks to government initiatives, including e-governance. Some hurdles face players operating in the Indian computer peripherals sector, including widespread penetration of smart handheld devices. These devices minimize demand for more-frequently used computer peripherals. The country’s grey market is also dragging down revenue, making products available before they are officially launched and charging lower prices to attract consumers eager to obtain the latest products. Trends emerging in India’s computer peripherals market include greater focus on the aesthetic aspect of products, growing LED monitors demand and industry players moving into the smart handheld device market segment. Manufacturers are concentrating their efforts on providing consumers with more compact, aesthetically pleasing, portable products. LED display units are gaining in popularity due to the fact that they use less power and are highly portable, making them convenient for consumers.


The UK computer and peripheral equipment wholesaling sector is forecast to reach almost $35 billion before the end of 2012, reports IBISWorld. There are around 2,000 outfits operating in the sector, accounting for the distribution of around 90% of the software, computer and computer peripheral equipment purchased in the UK. The UK computer equipment supply chain has witnessed an increasing degree of consolidation. The industry has low concentration, with the four leading outfits generating around 25% of overall industry revenue. UK computer equipment industry revenue encompasses local vendor subsidiaries along with revenue generated by resellers and distributors. The country has a range of peripherals, software and personal computers vendors, many dealing with resellers and distributors and others selling directly to end users, such as Dell. The UK’s four leading computer vendors are Dell, HP, Acer and Toshiba, accounting for almost 65% of computer sales combined. Leading players in the mid-range computer segment include Hewlett-Packard, IBM and Oracle, with around 30 vendors operating in the UK in total.



Industry Players


Leading players currently operating in the global computer peripheral market include Toshiba, Microsoft, Lexmark, Western Digital, HP, Apple, Dell, Samsung, Seagate, Logitech, UNIHA and IBM.



Market Outlook


The global computer peripheral market is set to witness increasing demand for products due to consumer preference for the latest technology. Factors contributing to increased demand also include economic recovery as consumers having postponed purchases are likely to go ahead with technology purchases due to rising consumer confidence. However, declining prices will offset growth to a certain degree.


In the business sector, many companies will be reviewing their computer equipment to make sure they are up-to-date before making the leap to cloud computing. Companies are also upgrading their storage facilities to accommodate more complex data formats, such as video and audio.



Leading Industry Associations


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