CE Industry Revenues to Reach Record High in 2014

ARLINGTON: Revenues for the consumer electronics (CE) industry are projected to grow 2.4 percent in 2014, reaching a new record high of $208 billion, according to the Consumer Electronics Association (CEA).

The U.S. Consumer Electronics Sales and Forecasts is a semi-annual industry report released by the CEA. It forecasts that new, emerging product categories will grow by 107 percent year-over-year in 2014. These new technology categories—3D printers, Bluetooth wireless speakers, convertible PCs, health and fitness devices, smart watches and Ultra HD television displays—are expected to contribute more than $6 billion to the overall CE industry in 2014. These emerging product categories represent less than 3 percent of the entire CE industry, but they drive 65 percent of total industry revenue growth.

Smartphones are expected to maintain their position as the sales leader of the industry in 2014, with unit shipments projected to reach 152 million this year, up from 138 million units sold in 2013. Smartphone revenues are expected to generate $41 billion in 2014, a 4.6 percent increase from $39 billion in 2013. Unit sales of tablets are projected to reach 89.3 million this year, up from 77.4 million in 2013. Revenues for tablets will reach $27.3 billion this year, up by 3 percent.

For the television category, total unit sales of displays are predicted to remain even with 2013 levels; total TV sets and display sales are projected to reach $21.3 billion in 2014, up 2 percent from 2013’s better than expected revenue level of $21 billion. LCD flat-panels continue to dominate the total number of sets sold each year. Both unit sales and revenues for LCD displays are expected to increase slightly, with 39 million LCD TVs expected to ship to dealers in 2014, resulting in $19 billion in revenue. Innovative features such as Ultra HD and OLED within the display category are beginning to gain awareness. Unit shipments of Ultra HD displays are expected to surpass $1 billion for the first time this year, while OLED displays will reach $836 million.

“In a short amount of time, mobile connected devices have become ingrained and indispensable in consumer’s lives,” said Steve Koenig, CEA’s director of industry analysis. “The market for these products, now found in millions of households, is exceptionally competitive, naturally resulting in slowed revenue growth. Yet we find ourselves at an interesting inflection point in technology, as these same products are creating opportunities and growth across several other categories in the industry.”