Consumer Electronics Industry Revenues to reach record high in 2014: CEA

SEATTLE (Scrap Monster): As per the semi-annual industry report released by the Consumer Electronics Association (CEA), the CE Industry revenues are projected to grow 2% in 2014 to reach record high of $211.3 billion from $207 billion in 2013. The report ‘US Consumer Electronics Sales and Forecasts 2010-2015’ further states that the industry sales are likely to grow by another 1.2% in 2015 to hit all-time high of $214 billion.

CEA forecasts that revenues from emerging product categories will grow by 242 percent year-over-year in 2014, and another 108 percent in 2015. These products include 3D printers, health and fitness devices, smart watches, Ultra HD television displays and smart thermostats. The emerging product categories of products represent less than 3% of the total revenue are expected to contribute nearly $5 billion in revenues.

According to the report, innovations within the television category will help drive sales this year. 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. However, LCD TVs will produce $17.3 billion in revenue, in line with 2013 levels.

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. Smartphone revenues are expected to generate $46 billion in 2014, a seven percent increase from $43 billion in 2013. Revenues for tablets will reach $25.6 billion this year, down three percent.

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.