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CEA Forecasts Consumer Electronics Rev Will Surpass $155 Billion In ‘07
Factory-to-dealer sales of consumer electronics are projected to exceed $155 billion in 2007, or seven percent growth, according to the semi-annual industry forecast released by the Consumer Electronics Association. The report comes as the 2007 International CES kicks off in Las Vegas.
"The consumer electronics industry has outdone itself once again, with revenues totaling $145 billion in 2006, and we're on track for another year of healthy growth," said CEA President and CEO Gary Shapiro. "We surpassed original projections for the second year in a row, and the industry outlook is proof positive that Americans can't do without their beloved consumer electronics. Consumers are benefiting from our industry's innovations and only want to see more of them. I am excited to be witnessing this innovation first-hand on the show floor at the International CES."
Todd Thibodeaux, CEA's senior vice president of industry relations, acknowledged 2006 industry growth far exceeded CEA's conservative forecast at the beginning of the year. "We originally forecast eight percent growth, but when all was said and done, we saw an impressive 13 percent growth for the year. Consumers started the year investing in innovative consumer electronics products and seemingly never stopped. With the 2007 forecast, we see the consumer love affair with technology continuing at a healthy clip."
Thibodeaux said the display category will continue to fuel industry growth in 2007. "The TV market is setting all-time revenue records. CRT-based sets are giving way to flat panel displays. The successful ongoing transition to digital television is driving demand in this market space."
MP3 players continue to drive the audio market. CEA projects that MP3 players will account for 90 percent of the $6 billion in revenues for the portable entertainment market. Thirty-four million MP3 players shipped in 2006 and an additional 41 million are expected to ship in 2007.
"One of the biggest drivers of both the audio and portable entertainment markets is the MP3 player. It continues to ship at large volumes and 2007 will be no different as the market shifts into a replacement mode. For example, many consumers will be replacing their first generation players with new players offering video playback capability," said Thibodeaux.
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