Over the past six years, demand within the UK recording devices market has remained relatively flat, with sales fluctuating at approximately £16 billion.
Demand for recording devices was mainly driven by UK households, which accounted for approximately 78% of total sales over 2006-2012. The market was mature and saturated, as already in 2007 more than 80% of homes in the UK had multi-channel digital TV sets.
Watching TV and listening to music continued to be the most popular leisure activities for both men and women, but there was little need for new devices.
In 2010 the UK recovered from the worst recession since World War II, and sales of recording devices bounced back to pre-recession levels.
Nevertheless, rising unemployment and uncertainty regarding the future path of the national economy meant UK consumers were reluctant to spend too extravagant amounts on non-essential items, including many consumer electronics.
The dominant 76% share of the market was imported. From 2006 China stood firmly as the number one foreign supplier to the UK, largely due to British and other European producers exploiting Asia as a manufacturing hub. Following the same logic, other top suppliers included Slovakia and Turkey.
Struggling to sustain sales in this highly competitive and saturated market, equipment suppliers introduced a number of product innovations over 2006-2012. Internet access and synergies between devices represented one such attempt, with the increasing quality of Internet connections and growth in connected devices.
UK companies manufacturing recording devices are projected to record a 2% annual turnover decline over 2013-2018, bringing total revenue down to £1.9 billion. Local manufacturers will continue to lose share in the UK and in global markets to manufacturers located in countries where labour costs are low and supply chains deep.
Successful UK companies will be those offering very high quality products and attractive brands, although they will increasingly choose to make their products outside the UK.
For more information on the UK recording devices market, see the latest research: UK Recording Devices Market
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