Despite sluggish sales of Internet-enabled television and 3DTVs, the consumer electronics industry will have stronger than anticipated growth in 2011, according to the semi-annual industry forecast released today by the Consumer Electronics Association (CEA).
The CEA also projects that industry will surpass $190 billion in overall shipment
revenues this year, a growth rate of 5.6 percent, which is higher than the previous
projection from January. The U.S. Consumer Electronics Sales and Forecast (July 2011)
also projects industry shipments will grow in 2012, reaching an all-time high of $197
"Innovation continues to drive the electronics industry to record levels, even in the
face of declining economic growth overall," said CEA President and CEO Gary Shapiro.
"Newer, innovative product categories, like tablets, not only meet consumer demand but
also help bolster our industry and strengthen the overall American economy."
The forecast released today estimates 2011 shipment revenues of 5.6 percent, up from a
forecast of 3.5 percent in January and assumes a U.S. GDP growth rate of 2.4 percent.
Industry shipment revenues will surpass $190 billion this year, about $4 billion more
than anticipated in January. Growth is projected to continue into 2012, reaching $197
billion in shipment revenues, an all-time high.
CEA expects the surging sales of mobile connected devices to be significant enough to
push the overall industry higher than previously projected:
- Tablet computers are projected to grow 157 percent in 2011, with more than 26.5
million units being shipped to dealers and resulting in $14 billion in shipment
- Smartphone sales will also see major growth this year and will continue to be the
primary revenue driver for the industry. Smartphone unit sales will climb an estimated
45 percent and reach more than $23 billion in industry revenue.
- eReader unit sales will double this year, with more than 16.5 million units being
shipped, resulting in $1.8 billion in revenue.
"One year ago, tablets were a new and unproven market, and now they, along with other
mobile connected devices including smartphones and eReaders, are leading the entire
industry to positive growth," said Steve Koenig, CEA's director of industry analysis.
"The revenue boost from these innovative products is undeniable as a number of other
CE segments are reaching maturity and sales are naturally declining."
CEA estimates 88 percent of U.S. households own at least one digital television. Given
this high penetration rate, sales of digital displays are expected to fall this year.
However, this category remains an important contributor to the industry's bottom line
with 2011 revenues topping $18 billion. Network-enabled displays, however, are a
growth segment, with an estimated 10.4 million network-enabled displays shipping to
dealers this year. 3D displays will also see better-than-projected growth as 3D
becomes a standard feature in displays and is incorporated into more sets across
product lines. An estimated 3.6 million 3DTVs will ship in 2011, up from a projected
1.9 million units in January.
Despite slower display sales, consumers are continuing to upgrade their in-home
theater experience, and audio sales are rebounding this year. According to CAE,
soundbars are leading the way with 2.4 million units expected to ship in 2011, an
increase of 250 percent from last year. In-vehicle technology is also poised for a
strong year, as technology in new vehicles is resulting in double-digit growth. As
consumers seek to integrate existing devices and content into their vehicle, such as
Internet radio, automotive entertainment technology revenues are up more than five
percent. Digital cameras will also have a healthy year with unit shipments growing