The consumer electronics industry is projected to post a healthy 6.1% increase in shipment revenues in 2008, which are forecast to top $171 billion, according to the semi-annual industry forecast released by the Consumer Electronics Association (CEA).
CEA also released its estimate of final shipment revenues for 2007, which totaled $161 billion, up 8.2% over 2006.
The overall projection for the rate of 2008 growth, slightly lower than 2007 growth, is closer to the long-term historical average for the industry – and well above expected 2008 growth levels for many other sectors, including housing and new vehicles.
Among the CEA report’s findings and forecasts:
- TV displays continue to be the largest contributor to the CE industry bottom line, representing roughly 16% of overall CE shipment dollars.
- Shipments of displays are expected to grow 13% to more than $29 billion.
- Sales of next-generation DVD players will take off in 2008, as prices decline and consumers continue to seek out high-quality home-theater products. CEA forecasts unit shipments will grow 173% to 2.8 million.
“Consumers remain focused on upgrading their home theater systems,” noted Steve Koenig, CEA’s senior manager of industry analysis. “Already, digital televisions are present in more than 50% of US households. 2008 will continue to feature robust growth in this category.”
Among the other findings and forecasts:
- The gaming category continues to set records in terms of revenue:
- Fueled by the availability of three next-generation consoles, gaming hardware alone is estimated to have grown 50% to $6.6 billion in 2007.
- Riding the wave of several successful title launches, gaming software is expected to drive growth in 2008, with sales forecast to grow 26%, to $11.5 billion, this year.
- Total shipment revenues in the mobile video and navigation category will nearly double this year to more than $3.1 billion thanks to skyrocketing sales of portable navigation devices (PNDs).
- In particular, CEA expects rapid revenue growth of over 74% for devices that include traffic and data functionality.
About the report: US Consumer Electronics Sales and Forecasts 2003-2008 (January 2008) is published twice per year, in January and July. It was designed and formulated by CEA, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry.