Consumer Electronics industry grows 11% in 2005
Las Vegas (NV) - Three days before this year’s Consumer Electronics Show (CES) will open its doors to the public, the Consumer Electronics Association (CEA) reported an 11% sales growth for 2005 and an expected 8% increase for 2006.
According to Gary Shapiro, president and CEO of the CEA, 2005 sales exceeded initial estimates of about $122 billion and landed at $125.9 billion. The 2006 target of factory sales is set at Factory sales of consumer electronics will reach a new high of $135.4, which is down from the double digit growth of 2005, but would represent still a healthy 8%.
"The numbers say it all - the consumer electronics industry is hot," Shapiro said in a prepared statement. "Consumer electronics sales are consistently growing, breaking records every year, because our industry is constantly changing to provide products that consumers love and can’t live without."
While much of the 2006 growth is expected to come from wireless devices, flat panel displays, MP3 devices and gaming consoles and software, the organization believes that televisions (DTVs) will continue to be the driving force of the industry. Total DTV sales are estimated to climb from $17 billion in 2005 to more than $23 billion and 18 million units in 2006. "This growth is attributable to the growing popularity and competitive price declines of flat panel displays such as LCD and plasma. Combined, these displays accounted for 40 percent of all DTV sales," the CEA said.
According to the organization, analog and digital LCD TVs reached a volume of $3 billion in 2005. Plasma TVs sold nearly two million units for a total of $4 billion in dollar sales. High-definition devices (HDTVs) claimed 85% of the total DTV market.
Further sales projection included the gaming market, which is estimated to top $14 billion, up from $12 billion in 2005. MP3 players are expected to hit $4.5 billion in revenues, and wireless handsets $16 billion.