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Stimulus Stimulates U.S. Education Projector Market - AvNetwork.com

Stimulus Stimulates U.S. Education Projector Market

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While politicians are debating the efficacy of the U.S. stimulus package, there’s no debate that the program has benefitted sales of projectors to the American education market, according to iSuppli Corp. Shipments of projectors in North America rose 12.4 percent in the second quarter to reach 440,322 units, up from 391,646 in the first quarter.
This contrasts with a 0.4 percent sequential decline in global projector shipments during the quarter.

 “The primary factor responsible for the growth in the U.S. projector market is the increase in shipments of front projectors in K-12 classrooms and universities,” observed Sanju Khatri, principal analyst, projection and large screen displays, for iSuppli. “The U.S. education market is benefitting from Title IID funding under the American Recovery and Reinvestment Act (ARRA), with about $650 million appropriated for the use of new or existing technologies to improve academic achievement for elementary and secondary schools. As the funds have become available in July, education spending on projectors in the United States is now on the rise.”

The education sector, a major driver for the projector market, is expected to account for 38 percent of shipments in 2009. The strong performance in the United States contrasts markedly with those of some other regions. In the Europe/Middle East/Africa region, shipments declined by 19 percent in the second quarter compared to the first. Seasonal factors contributed to the low shipments, as well as weak sales in Germany, Eastern Europe, and Africa and the Middle East.

Projector shipments worldwide are expected to grow at a more healthy rate in the third quarter due to further increases in education sales in the United States and Europe/Middle East/Africa. North American shipments will rise 18.2 percent in the third quarter to reach 520,578 units, while the worldwide market will climb to 1.3 million units, up 15.4 percent from the second quarter.

“Shipments will rise due to increased sales in education market in the United States as school districts make use of the ARRA funding,” Khatri said. “The front-projector market is expected to benefit from this as the technology still remains the most cost-effective solution for large-sized displays. Furthermore, the Europe/Middle East/Africa market is expected to recover as education and corporate demand picks up.”

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