Digital Revolution Drives Continued Growth in Consumer Electronics Sales note: (FACTORY SALES TO DEALERS)
ce.org
Las Vegas,NV 1/5/01
Sales of consumer electronics goods from manufacturers to dealers will surpass $95.6 billion in 2001, according to figures released today by the Consumer Electronics Association (CEA). The total for 2001 will set a new annual sales record and represent a six percent increase over the 2000 total, making 2001 the ninth consecutive year of growth for the industry. In addition, CEA revised its year-end 2000 estimate of sales up to $90.1 billion, a tremendous ten percent increase over the 1999 figure of $81.9 billion.
"The spectacular growth in sales of consumer electronics this year is due in large part to the wide variety of products made possible by digital technology," said CEA President and CEO Gary Shapiro. "Now, more than ever, manufacturers are offering customizable products to facilitate consumers' lifestyles and workstyles. The industry will continue to grow as consumers want products that suit their active lives."
The effect of digital technologies on industry growth can be seen in virtually all product categories, with such varied products as digital televisions, DVD players, MP3 players, wireless telephones and digital cameras each spurring growth in their respective categories.
One of the categories most affected by the digital revolution has been home information products. The home information sector includes "workstyle" technologies that allow consumers to work when, where and how they want. According to the new CEA estimates, the home information category will grow by 3.3 percent in 2001, with total sales of more than $39 billion.
Within this category, digital cameras have posted the highest growth rates in recent years, with dollar volume increasing by more than 645 percent from 1996 to 2000. CEA projects that trend to continue in 2001, with sales of digital cameras reaching 6.4 million units, accounting for $2.9 billion.
Personal computers (PCs), by far the largest single product in the home information category, also have continued to enjoy substantial growth rates. CEA estimates that 63 percent of all U.S. households will own a PC by the end of 2001, up from 58 percent at the end of 2000. In addition, sales of computer-related products such as printers, modems and fax modems, monitors, other peripherals and software in 2001 will total more than $15 billion, making the PC family's contribution to the overall CE market more than $32 billion.
The other category most greatly affected by the digital revolution has been mobile electronics. Digital technology has vastly improved the ease with which consumers can access information and entertainment as well as stay in touch with friends and family. Sales of mobile electronics are projected to reach $10.5 billion in 2001, an eight percent increase over 2000. Wireless phones maintain the largest share of the category, with dollar sales of $3.7 billion forecast in 2001, a 16 percent increase over 2000. Based on a forecast of 22 million in unit sales, market penetration of wireless phones is likely to exceed 60 percent by the end of 2001. Sales of family radio service products also should enjoy a strong year, with dollar sales forecast at 539 million, a 25 percent increase over 2000.
CEA also predicts strong growth in the video category in 2001, with products such as digital televisions, camcorders, personal video recorders and DVD players leading the charge. The video category grew by 15 percent in 2000 to a total of $19.2 billion in sales. That number is expected to increase by another six percent in 2001, with dollar projections topping 20.3 billion.
Within the video category, DVD players have far exceeded sales expectations. CEA predicts that growth to continue in 2001. In 1999, DVD players became the fastest selling product in the history of consumer electronics, with more than four million units sold during the year. In 2000, that number rose to more than 8.2 million. CEA projects unit sales of 12.5 million in 2000, accounting for more than $2.4 billion.
The introduction of digital functionality to the camcorder has led to a strong resurgence in sales, as 2000 marked the third consecutive year of growth for the product. Sales of camcorders topped 5.7 million units in 2000, representing $3.3 billion. In 2001, CEA projects camcorder sales to surpass 6.3 million, which would push household penetration above 40 percent.
Also on the rise in the video category are digital televisions and personal video recorders (PVRs). In 2000, sales of digital televisions and displays surpassed earlier projections, reaching an estimated 625,000 units and $1.4 billion in revenue. CEA projects that number to increase to 1.13 million units in 2001, representing an 80 percent increase and accounting for more than $2 billion. Meanwhile, in only their third year, PVRs are poised for tremendous gains in 2001. CEA projects sales of 2.8 million units and $714 million for PVRs this year, up from 1.4 million units and $414 million in 2000.
Sales of home and portable audio products are projected to rise slightly this year, after experiencing a relatively flat year in 2000. Total sales for the category are expected to top $6.2 billion, an almost two percent gain over 2000.
The most significant gains in home and portable audio products are forecast for home-theater and MP3 players. The incredible popularity of DVD players, with their surround sound capabilities, most certainly has contributed to consumers' interest in home theater. Home theater component sales will grow by 16 percent in 2001, to a total of $12.5 billion, as household penetration for complete home theater systems approaches 25 percent. MP3 player sales also will continue their incredible growth trend in 2001, as CEA forecasts sales of 1.8 million units, an increase of 54 percent over 2000.
The continued growth in sales of primary consumer electronics products also brings with it a natural increase in sales of accessory products. CEA forecasts sales of accessory products to surpass $1.6 billion in 2001, a nine percent increase over 2000.
Much attention was given to the gaming category in 2000 with numerous new product introductions. This attention was not lost on the public, as significant gains were seen in both gaming hardware and software. This trend is expected to continue in 2001, with dollar sales of hardware projected to increase by roughly 17 percent in 2001, and sales of software to increase by 20 percent.
CEA issued its latest forecast after analyzing national sales figures for the first 11 months of 1999 along with data from market surveys, predictions from manufacturers, information from government and other associations, as well as other research.
CEA's consensus report is published twice per year and is distributed at no cost to CEA members. Non-members may obtain a single copy at a cost of $149, or $249 for a two issue annual subscription. The entire report may be purchased on the CEA Market Research website, www.eBrain.org. For further ordering information, contact CEA's Market Research Department at info@eBrain.org or 703-907-7500.
The Consumer Electronics Association (CEA) represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communications, information technology, multimedia and accessory products, as well as related services, that are sold through consumer channels. Combined, these companies account for more than $60 billion in annual sales.
CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy. |
