The annual Consumer Electronics Show (CES) takes place in early January and sheds light on the robust consumer electronics industry, which has a huge impact on our clients business. Many of the devices and gadgets on display in Las Vegas are fueled by broadband and other telecom and data services offered by Finley clients, and are leading indicators of where the business is headed.
Consumer electronics industry revenues will grow three percent in 2015 to reach an all-time record-high $223.2 billion, according to the latest semi-annual installment of “The U.S. Consumer Electronics Sales and Forecasts” from the Consumer Electronics Association (CEA).
CEA’s semi-annual market research spans U.S. factory sales to dealers for over 100 CE products. In its latest report, CEA forecasts revenues for emerging product categories – 3D printers, 4K Ultra-High Definition TV sets, connected thermostats, aerial drones, IP cameras and wearables among them – will double, increasing 108 percent year-over-year in 2015. Though they account for less than five percent of overall CE industry revenues, emerging CE products will add nearly $11 billion to the industry revenue total this year, according to CEA.
Mobile phones and tablets will continue to be the leading revenue drivers for the industry overall in 2015, CEA says, accounting for 34.1 percent of total revenue. “Although revenue growth for these categories has slowed as the category has matured, unit sales will continue to see increases,” the industry association commented.
CEA forecasts smartphone shipments will increase six percent YoY in 2015 as unit shipments reach 169.3 million. That will produce revenues of $51.3 billion, up five percent from 2013. Growth in larger screen smartphone models between 5.3 and 6.5 inches will be particularly strong, according to CEA.
Tablet unit sales will increase three percent this year, CEA expects, reaching 80.7 million and producing revenue of $24.9 billion.
Commenting on its latest semi-annual CE industry report, CEA President and CEO Gary Shapiro commented: “Our forecast underscores that consumers’ love affair with technology shows no signs of slowing any time soon.
“Consumer technology is all about continued innovation. In the blink of an eye, consumer demand has taken off for emerging categories such as wearables, unmanned aerial vehicles and 4K Ultra HD – categories that were too small to track just three years ago. Expect to see these burgeoning categories, as well as innovations across the full spectrum of consumer technology, on display this week at the 2015 International CES.”