Welcome!

News Feed Item

Consumer Electronics Industry Revenues to Reach All-Time High in 2014, Projects CEA’s Semi-Annual Sales and Forecasts Report

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 underlying categories.

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.”

Video

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.

  • Ultra 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.

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 percent.

“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 2014:

  • 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 Store.

About 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, www.DeclareInnovation.com and through social media: http://www.ce.org/social

UPCOMING EVENTS

  • CEA Innovate!
    Sept. 30-Oct. 2, 2014, Phoenix, AZ
  • CES Unveiled Paris
    October 22, 2014, Paris, France
  • CE Hall of Fame Dinner
    November 10, 2014, New York, NY
  • CES Unveiled New York
    November 11, 2014, New York, NY
  • CES Unveiled Las Vegas
    January 4, 2015, Las Vegas, NV
  • 2015 International CES
    January 6-9, 2015, Las Vegas, NV

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTred processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...