Emerging innovations, such as wearable tech and Ultra HD TV, to
grow almost 250 percentUltra HD: The continued market growth of Ultra HD TV is
performing better than initially projected in 2014. Unit shipments of
Ultra HD displays are expected to reach 800,000 in 2014, earning $1.9
billion in revenue, a 517 percent increase over the 2013 total.
Revenue from Ultra HD displays is projected to exceed $5 billion in
2015, an impressive total considering that revenue was virtually
nonexistent three years earlier.
LCD flat panels: LCD TVs will account for 94 percent of all
digital display sets sold this year, with 36.7 million units expected
to ship to dealers in 2014. That total will produce $17.3 billion in
revenue, in line with 2013 levels as the third-highest revenue driver
to the CE industry.
ARLINGTON, Va.--(BUSINESS WIRE)--
Driven in part by the skyrocketing sales of connected devices, revenues
for the consumer electronics (CE) industry are projected to grow two
percent in 2014, reaching a record high of $211.3 billion, according to U.S.
Consumer Electronics Sales and Forecasts 2010-2015,the
semi-annual industry report released today by the Consumer Electronics
Association (CEA)®. CEA’s consensus forecast reflects U.S.
factory sales-to-dealers and covers more than 100 CE products, serving
as a benchmark for the CE industry, and charting the size and growth of
Overall Revenue Growth
The new U.S. Consumer Electronics Sales and Forecasts report
projects that total industry revenue will reach a record $211.3 billion
in 2014; a steady, two percent increase from $207 billion in sales in
2013. This midyear update is in line with CEA’s
projection in January, slightly adjusted after better-than-expected
2013 revenue growth. Looking ahead to 2015, CEA expects industry sales
to grow by 1.2 percent, with industry revenues reaching another all-time
high of $214 billion.
Emerging Category Growth
CEA’s forecast projects that revenues from emerging product categories
will grow by 242 percent year-over-year in 2014, and another 108 percent
in 2015. These developing technology categories include 3D printers,
health and fitness devices, smart watches, Ultra HD television displays
and smart thermostats, a newly-introduced sales category to the report.
Cumulatively, while the emerging product categories represent less than
three percent of the entire CE industry revenue, they are expected to
contribute almost $5 billion to the overall CE industry in 2014. That
total is an astounding jump from just two years ago, when revenue from
these categories was too small to track.
“There has never been a more exciting time for the technology consumer,”
said Gary Shapiro, president and CEO, CEA. “Across the consumer
electronics industry, companies are packing more innovative features
than ever into products that have quickly become indispensable – even as
the industry continues to introduce breakthrough innovations that are
capturing the hearts, minds and imaginations of consumers across the
nation. Emerging tech categories including wearable devices, Ultra HD TV
and 3D printers are generating tremendous consumer excitement and
cementing their place as the next generation of ‘must have’ products.”
Innovations within the television category will help drive sales this
year, as consumers choose larger screen sizes and premium display
features to upgrade their home video experience. Despite a steady
decline in average wholesale prices, TV sales remain critical to the
industry’s overall bottom line with total TV sets and displays projected
to reach $18.4 billion in 2014, down five percent from 2013.
Mobile Connected Devices
Sales of mobile connected devices, specifically smartphones and tablets,
will continue to stand as the top two revenue drivers of the CE bottom
line in 2014. These two devices alone will represent 35.1 percent of
total CE industry revenue in 2014. Although revenue growth for this
category has slowed, unit sales will continue to see increases.
Smartphones: As the sales leader of the industry, smartphone
unit shipments are projected to reach 163.5 million this year, up
eight percent from the 151 million units sold in 2013. Additionally,
smartphone revenues are expected to generate $46 billion in 2014, a
seven percent increase from $43 billion in 2013.
Tablets: Unit sales of tablets are projected to reach 80.4
million this year, a four percent increase from 77.4 million in 2013.
Revenues for tablets will reach $25.6 billion this year, down three
“These top revenue-driving products, namely LCD flat panel TVs and
mobile connected devices, can now be found in millions of households in
a remarkably short amount of time,” said Steve Koenig, CEA’s director of
industry analysis. “This has resulted in a crowded market, naturally
lending itself to slowed revenue growth. Yet we’re at an interesting
turning point in technology, as these same products are increasingly
adopting premium, differentiating features, driving consumer interest
and creating opportunities across other categories in the industry.”
Other Positive Growth Categories
Among the other product categories expected to see positive growth in
Audio: Headphones, Bluetooth wireless speakers and soundbars
remain the standout products of the category. Headphones are expected
to sell 75.9 million units, earning $1.4 billion in revenue (a 20
percent increase over 2013). Bluetooth wireless speakers are expected
to generate $650 million in total revenue in 2014, a 69 percent
increase year-over-year, while soundbars are projected to reach $611
million in revenue (a 17 percent increase).
Automotive electronics: The growth of new vehicle sales in 2014
will propel factory-installed systems to reach $11 billion in revenue,
an increase of 20 percent.
Gaming consoles: The release of eighth-generation gaming
consoles at the end of 2013 is projected to drive revenues of $4.8
billion in 2014, along with a 35 percent increase in unit shipments.
Although CE industry revenue growth has slowed in recent years, from 7.7
percent in 2011 to 1.7 percent in 2013, total revenue crossed $200
billion for the first time in 2012 and shows no signs of retreating
below that milestone.
“Industry revenue is reaching all-time highs, fueled in large part by a
few specific categories, while much of the industry is still
experiencing relatively flat growth due in large part to the continued
decline of average selling prices,” said Shawn DuBravac, chief economist
and senior director of research, CEA. “Although some categories continue
to struggle, clearly there are many bright spots within the CE industry,
and consumer enthusiasm for new features and emerging product categories
provide reasons for long-term optimism about continued overall growth.”
The U.S. Consumer Electronics Sales and Forecasts report is
published twice a year, in January and July, reporting U.S. factory
sales to dealers. Designed and formulated by CEA, the report is the most
comprehensive source of sales data, forecasts, consumer research and
historical trends for the consumer electronics industry. CEA’s analysts
combine forecast estimates from some 50 CE manufacturers and key
industry analysts with CEA’s industry shipment data, also provided
directly by industry, to size current market volumes and project future
shipments. Please cite any information to the Consumer Electronics
Association (CEA)®. The complete report is available for free
to CEA member companies at CE.org.
Non-members may purchase the study for $2,000 at the CEA
The Consumer Electronics Association (CEA) is the technology trade
association representing the $211 billion U.S. consumer electronics
industry. More than 2,000 companies enjoy the benefits of CEA
membership, including legislative advocacy, market research, technical
training and education, industry promotion, standards development and
the fostering of business and strategic relationships. CEA also owns and
produces the International CES – The Global Stage for Innovation. All
profits from CES are reinvested into CEA’s industry services. Find CEA
online at www.CE.org,
and through social media: http://www.ce.org/social
Sept. 30-Oct. 2, 2014, Phoenix, AZCES Unveiled Paris
October 22, 2014, Paris, FranceCE Hall of Fame Dinner
November 10, 2014, New York, NYCES Unveiled New York
November 11, 2014, New York, NYCES Unveiled Las Vegas
January 4, 2015, Las Vegas, NV2015 International CES
January 6-9, 2015, Las Vegas, NV
Consumer Electronics Association (CEA)
Source: Consumer Electronics Association (CEA)