Connected Devices to Account for 70 Percent of CE Market Revenue

BOSTON: For 2011, 70 percent of the consumer electronic (CE) industry revenues will come from Internet-connected devices, according to the latest research from Strategy Analytics.

The report, Global Connected Consumer Electronics (CE) Devices Market Forecast, predicts that global connected-TV-device revenues will total in excess of $95 billion in 2015, representing more than one-quarter of the overall connected-device market. In 2011, global CE device revenues will reach $468 billion, a growth rate of 6 percent above 2010. Forecasts for 2011 also represent a positive growth rate of 19 percent in unit sales. For connected (network-enabled) CE devices Strategy Analytics expect 30 percent unit growth in 2011 and 15 percent market value growth to reach $332 billion.

“While connected flat panel TVs, set-top boxes and DVRs still represent a small portion of their respective product segments, 68 percent of all CE devices sold this year will be connectable to the Internet,” said Peter King, the director at Strategy Analytics.

“Sixty-seven percent of all FPTV units sold in 2015 will be connected TVs. This represents a 38 percent compound annual growth rate over the next five years,” added Jia Wu, the senior analyst at Strategy Analytics in the digital consumer practice. “Although growth in the overall TV market will be modest, the market value of connected TVs will more than double during the same period.”