Growth of the Audio-Video, Household Appliances, and Mobile Phone Market in Indonesia
Brief
The audio-video electronics market in Indonesia has experienced steady growth until 2022, while the "over-the-top" digital content market has seen significant increases, driving sales of physical audio-video products. The household appliances sector has entered a high-growth phase, with expected revenue reaching $866 million in 2020 and strong growth projections until 2025. Smartphone usage in Indonesia is on the rise, with online sales surging due to the pandemic, and smartphone penetration estimated to reach 89 percent by 2025.
• The annual market demand growth for audio-video electronics reached 10.7 percent in 2018 and is expected to continue until 2022.
• The "over-the-top" digital content market in Indonesia was estimated to reach $123 million in 2018 and is projected to reach $1,502 million in 2026, with an annual growth rate of 27.7 percent from 2019 to 2026. This will boost the sales of physical products supporting audio and video services. It is estimated that Indonesian households with monthly incomes ranging from IDR 5 million to IDR 7.5 million spend 9 percent of their household expenses on audio-video electronics.
• The household appliances sector in Indonesia has entered a high-growth phase, transitioning from luxury goods to affordable secondary items. The revenue for the household appliances sector is estimated to have reached $866 million in 2020, with an annual growth rate of 15.7 percent from 2020 to 2025. As a result, this sector is expected to have a market volume of $1,798 million in 2025.
• Indonesia is estimated to have had 81.8 million smartphone users in 2020, which is projected to increase to 89.9 million users by 2022.
• Due to the pandemic, online smartphone sales in Indonesia increased by 70 percent YoY and 7 percent QoQ during Q2 2020, compared to 9 percent in Q2 2019. Smartphone penetration in Indonesia reached 70 percent of the population in 2020 and is expected to reach 89 percent by 2025.