As the COVID-19 virus continues to create economic and social disruption, the combined retail value of the global pro AV, consumer electronics and entertainment industry is projected to plummet by a staggering US$120 billion or more this year,says a new report, ‘COVID-19 Market Impact Report April 2020’, by global consultancy firm Futuresource Consulting.
“Interruptions within supply and manufacturing chains, coupled with the necessary social lockdowns, have inevitably led to substantial downward pressure on many industries,” said Simon Bryant, director of research at Futuresource Consulting, inhis market prognosis.
“In contrast, some categories within CE, entertainment and professional AV sectors are benefiting from the social distancing measures. Video conferencing, gaming and subscription video on demand (SVoD) are good examples,” he added.
Bryant believes Futuresource’s scenario modelling has revealed a range of long-term possibilities, from the most serious to the most optimistic outcome.
“In the best-case scenario, the majority of COVID-19’s impact will be on the supply chain. There will be disruption, but in this model, manufacturing and logistics will return to normal before the end of June and there will be a reasonably seamless return to business as usual.
“Fiscal and monetary stimulus packages will stabilise markets and restore consumer and market confidence, compensating for some, but not all, lost shipments.”
In the worst-case scenario, Bryant maintains that key vendors will struggle to bring new products to market, with some devices significantly delayed.
Bryant also predicts that market disruption will “continue throughout 2020 into 2021, with the pandemic either proving difficult to contain or resurfacing as further outbreaks occur throughout the year”, resulting in a global recession, with markets worldwide entering a period of decline.