CE To See Steady Revenue Growth
The forecast revenues will be about 2.4% higher than revenues earned in 2013, according to the CEA. Leading the growth will be new and emerging product categories such as 3D printers, Bluetooth wireless speakers, convertible PCs, health and fitness devices, smartwatches and Ultra HD televisions, which cumulatively will grow by 107% year-over-year in 2014. Although these product categories represent less than 3% of the entire CE industry, they will drive 65% of the industry’s overall revenue growth next year, according to the organization.
Meanwhile, sales of mobile connected devices such as smartphones and tablets will continue to grow, although revenue growth will be slowed somewhat. Smartphone shipments are expected to reach 152 million in 2014, up from 138 million in 2013, with revenues expected to reach $41 billion, a 4.6% increase from 2013‘s $39 billion. Tablet sales are projected to reach 89 million in 2014, up from 77 million, with revenues of $27.3 billion (a 3% increase).
“In a short amount of time, mobile connected devices have become ingrained and indispensable in consumers’ lives,” said Steve Koenig, CEA’s director of industry analysis, in a release. “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.”
Other categories likely to see growth in 2014 include audio products (including television soundbars, headphones and Bluetooth speakers); automobile electronics (where factory-installed systems revues will reach $11 billion, 20% higher than in 2013), and gaming, where the release of next-generation consoles will propel shipment growth 42% over 2013 to reach revenues of $5.7 billion in 2014.