The Consumer Electronics Association (CEA) also used CES to announce their projections of 7 percent growth in
revenue for the CE industry in 2007. 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 at the show by CEA.
“The consumer electronics (CE) 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.”
CEA projects that display technologies will continue to be the star category in the industry and account for $22 billion in revenues for 2007. All television sets manufactured today with an analog tuner must also contain a digital tuner, which is largely responsible for the vast increase in digital television sales. Unprecedented price declines in plasma and LCD displays are also contributing to growth. For 2007, these flat panel displays are expected to ship a combined 19 million units.
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.
Other product categories that will see substantial growth in 2007 are PCs, accessories and digital imaging devices. In 2006, shipment volumes of laptops eclipsed their desktop counterparts. CE accessory sales also will grow in 2007, to the tune of $11 billion, in large part due to an overall consumer emphasis on portability. Total digital imaging shipments are expected to exceed 32 million units, with revenues projected to reach $8 billion, making 2006 and 2007 the best revenue years for this category.
