Arlington, Va. — The Consumer Electronics Association (CEA) predicts the CE industry will see overall shipment revenues top $173 billion in the United States in 2008, according to its new report.
The semiannual U.S. Consumer Electronics Sales and Forecast, released today, shows CE shipment revenues will grow by 7.3 percent this year, reaching more than $183 billion by 2009.
“The CE industry is a backbone of economic activity in this country,” said CEA president/CEO Gary Shapiro. “In a tough economy, consumers turn to CE products for many reasons. Consumers don’t want to live without CE products and continue to crave the latest gadgets and innovations our industry has to offer.”
This latest forecast increases CEA’s projection for 2008 shipment revenues, last updated in January 2008, by $2 billion. Leading the way are digital displays, with shipment revenues approaching $28 billion. DTV shipments represent 16 percent of all CE shipment revenues. With the switch to digital television occurring on Feb. 17, 2009, unit sales for digital displays will accelerate, climbing 24 percent this year, while retail prices will fall by 11 percent.
“LCD TVs dominate the digital display market,” said Steve Koenig, CEA’s industry analysis director. “With prices continuing to drop, consumers are deciding the time is right to upgrade to digital. By the end of the year, more than 60 percent of U.S. households will have at least one digital television.”
Video games also remain a hot category as revenues once again reach record highs. Video gaming wholesale revenues will total more than $21 billion in 2008. Video game software is the dollar driver, buoyed by a burgeoning installed base of next-generation consoles. With the help of blockbuster gaming titles and franchises, gaming software shipment dollars will grow 27 percent this year and 23 percent in 2009. Portable video game systems will also shine in 2008 as consumers continue to seek CE products they can use anywhere, anytime.
Smartphones will see revenue growth of 51 percent this year, comprising 28 percent of total wireless handset shipments.
Included for the first time in the U.S. Consumer Electronics Sales and Forecast is a technology penetration forecast for U.S. households. Leveraging CEA industry forecasts and consumer research, this analysis illustrates the maximum market potential for core CE technologies. The forecast also features a global perspective. In a joint effort from CEA and GfK research, worldwide retail sales forecasts for 12 major CE categories is included adding insight on global CE sales volumes and growth.
The complete report is available free to CEA member companies. Non-members may purchase the study for $2,000 exclusively at mycea.CE.org.