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IHS News Flash: Updated Forecasts for Critical Consumer Electronics Segments at CES 2014

This is a news flash from IHS Inc. (NYSE: IHS) issuing updated forecasts and insights on developments expected at the 2014 Consumer Electronics Show (CES). The news flash covers the markets for tablets, ultra-high-definition (UHD) televisions, wearable electronic devices, automotive operating systems and self-driving cars.

(Graphic: Business Wire)

(Graphic: Business Wire)

IHS forecasts nearly half-billion tablet shipments by 2017

IHS’s latest forecast for tablets—including both media tablets and PC-type tablets—predicts global shipments will soar to 488 million in 2017, up from 141 million in 2012. Shipments this year will surge by 72 percent to reach 243 million units, as presented in Figure 1 attached.

“Shipments of tablets in 2013 and the coming years primarily are being boosted by the massive influx of low-cost white box devices from Asia,” noted Rhoda Alexander, director of tablet research at IHS. “Market volumes in 2014 and beyond also will be driven by rising shipments of PC-type tablets, which will be prominently displayed at CES this year. This will be a make-or-break year for Windows-based PC tablets. Because of that, PC manufacturers will be putting their best foot forward at CES, showing off their most compelling products for the year.

IHS upgrades UHD TV forecast

In light of swift reductions in pricing, IHS has boosted its forecast for UHD liquid-crystal display (LCD) television sets. IHS now predicts 38.5 million UHD LCD TV sets will ship in 2018, up from 1.5 million in 2013, according to the TV Systems Intelligence Service at IHS. Shipments will fly up more than 500 percent to reach 10 million in 2014, as presented in Figure 2 attached.

While television brands will show off their massive new ultra-high-definition sets at CES, the real focus for UHD makers in 2014 will be cost reduction,” said Jusy Hong, senior analyst for consumer electronics & technology at IHS. “Lower pricing will enable the market to expand—but UHD sets still have a long way to go before they command a major share of the overall market. In 2018, UHD will account for only about 16 percent of all LCD TV shipments.”

Exhibitors show off latest wearable devices at CES

Global market shipments of wearable devices for infotainment applications will rise by 155 percent from 2013 to 2018, according the IHS report entitled “Wearable Technology –World—2013”. Shipments will grow to 130.7 million units, up from 51.2 million in 2013, as presented in Figure 3 attached. The infotainment segment consists of products including Bluetooth headsets, head-up displays, imaging products, smart glasses and smart watches.

“The wearable electronic device market comprises five disparate segments: military, industrial, infotainment, fitness and wellness, and healthcare and medical,” said Shane Walker, senior manager for consumer and digital health research at IHS. “The market is dominated at present by the healthcare and fitness segments. However, during the next five years, infotainment is expected to experience the largest growth in unit shipments of all areas as consumers flock to buy new types of products, such as smart glasses and smart watches. Because of this strong growth potential, these devices are expected to be highlighted by numerous vendors at this year’s CES.”

Automotive operating systems and self-driving technology get in the fast lane at CES

Automakers and their suppliers will be out in force at CES. This will drive a market for automotive infotainment operating systems whose size will rival that of the PC operating system business, according to IHS Automotive, driven by Polk.

The market for automotive infotainment operating systems represents a major opportunity for software vendors, with platform sales climbing to nearly 130 million units in 2020—about the size of the global PC market in 1999,” said Egil Juliussen, research director for IHS Automotive. “Growth is being driven by the multiplicity of platforms in many cars, with a single auto potentially having one OS for the head unit and navigation, another for the telematics system and hands-free interface for mobile phones, and yet another for the rear-seat entertainment system.”

Figure 4 attached presents the IHS forecast of the global automotive infotainment operating system market.

“While self-driving cars are still many years off into the future, autonomous vehicles will be a major topic of discussion at CES,” Juliussen added. “A CES session will be dedicated to autonomous driving, and several major car makers and suppliers will discuss their plans at the event.”

The first self-driving cars will hit the road in 2024. Global sales are expected to rise to 226,000 in 2025, to 4.2 million in 2030 and to 11.8 million in 2035, as presented in Figure 5 attached.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs approximately 8,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All rights reserved.

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