Mobile phone market to decrease in value

By David Eldridge

But value of global battery powered devices will continue to rise, says report.

4 August 2008 –The global market for battery powered communication devices such as mobile phones is expected to see a fall in value over the next five years. However, the overall global market for portable battery powered products is forecast to continue to rise according to a report by market research firm BCC Research. The report said the global market for portable battery powered products - a key market for injection moulded plastics parts - was worth $425.3bn in 2007. This is expected to increase to $443.2bn in 2008 and $461.5bn by the end of 2013, a compound annual growth rate of 0.8%. But the largest segment, communication products, is forecast to decline to $120.0bn in 2013, an annual fall of –2.3% from $127.6bn in 2007. BCC said: “This decline is due to a convergence of function seen in PDAs and smartphones that causes individual markets to shrink as new converged markets grow.” Nonetheless, the US research group expects the communication products market to increase in 2008 to an estimated $135.2bn. Other battery powered products will see market growth, added BCC. Computer products, the second largest segment, was worth $98.0bn in 2007 and is expected to reach $103.0bn in 2008 and $118.7bn in 2013, an annual growth rate of 2.8%. Medical products also represent a significant share of the market, generating $66.1bn in 2007 and an estimated $68.6bn in 2008. This should rise to $94.0bn in 2013, increasing by 6.5% annually. BCC said the fastest growing segment is expected to be military products, with an annual increase forecast at 12.0%. This segment was worth $1.3bn in 2007 and is expected to increase to $1.8bn in 2008 and $3.2bn in 2013. The batteries used to power all these devices generated a $72bn market in 2007. Battery chargers were worth $41bn last year.

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