High Definition a key driver for UK Projector market

In a time of economic turmoil Projectors, like most products groups, are continuing to suffer as sales fell by 18% compared to March 2008 whilst suffering a similar fall in value of 10%.

This bleak picture continues to be evident when looking from a quarterly perspective. The first quarter of 2009 compared 2008 showed a similar decline of 18% and 19% respectively. Nevertheless, the market continues to show signs of evolving towards high end projectors and away from entry level models.

Sales share of Projectors with high brightness, high resolution, and short throw capabilities are all on the increase year on year. As a result this is helping slow down the price erosion of this market. In fact in March 2009 the average price of Projectors rose by £86 compared to February. There are numerous reasons for this, one of which being a conscientious attempt by the major brands to raise prices in order to combat the unfavourable exchange rates. Furthermore, in March, there was a noticeable increase in sales through the IT Reseller channel which predominately sells high end Business Projectors. Coupled with a fall in sales of Projectors within the retail channels it is of little surprise that prices have consequently risen. 

High definition devices are increasing in popularity, with sales of devices such as TV's, Blu Ray players, and HD camcorders all on the rise. Reassuringly this trend is being mirrored within the Projector market. Sales of full HD resolution Projectors have risen by 206% and 156% in volume and value respectively comparing Q1 2009 vs. Q1 2008.

Furthermore, since the beginning of 2009 the sales of these Projectors have developed each month. A relatively new feature for Projectors are those with short throw capabilities, offering the advantage of projecting a large image on to the surface from a distance as small as 42cm. This technology does not only yield benefits to the business and education users, but it also has scope to be used in consumers' living rooms. Sales of short throw Projectors remain in their infancy as their average price remains around £972, a £350 premium when compared to a projector without short throw capability.

Although sales numbers remain small in comparison to non short throw projectors with a volume growth of 613% for Q1 2009 vs. 2008, things look promising, especially as the average prices of continue to fall each month. The majority of the value of short throw projectors remains within the AV specialist channel, with 62% of the value sold through this channel alone. Sean Fellows, UK Projector Account Manager at GfK comments, "As the number of brands selling high specification projectors increases, market forces will normally cause prices to decline. However, it is interesting that this decline has not been as rapid as one may have expected. As a result high specifications projectors are helping keep value within the market."