CEA President And CEO Gary Shapiro Outlines Vision Of Future For Consumer Electronics Industry

6-Dec-02

With the consumer electronics industry merely at the ""end of the beginning"" of the digital revolution, the future of the consumer electronics industry looks strong, according to Consumer Electronics Association (CEA) President and CEO Gary Shapiro. Shapiro made his remarks during his opening keynote at the Semiconductor Market Outlook Conference in Santa Clara, California. In his keynote, Shapiro reported strong sales across several product categories; announced record-breaking exhibit space at the upcoming 2003 International CES, to be held January 9-12, 2003 in Las Vegas, Nevada; and laid out his predictions for five future trends for the consumer electronics industry.""Total consumer electronics sales from manufacturers to dealers are forecast to top $100 billion in 2003, marking a solid $4 billion increase over projected 2002 sales,"" announced Shapiro. ""And 2002 sales are on track to rise three percent over 2001. It's no wonder I remain bullish about the consumer electronics industry--not only here in the United States, but worldwide. The consumer technology market has a solid track record of growth and we have good reason to be optimistic going forward.""Shapiro noted that the continued advent of digital technologies is largely responsible for fueling industry growth. He also praised the integration of the microprocessors into consumer electronics products for helping spur consumer interest in new technologies. ""Embedded technologies allow for consumer electronics manufacturers to provide more pristine video, more lifelike sound, and reduce the size and portability of our products,"" stated Shapiro.He pointed to five product categories that are driving growth:- HDTV: Sales are expected to reach 2.5 million units this year, surpassing an initial forecast of 2.1 million. - DVD: Sales of DVD decks are on target to hit 17.6 million on dollar sales of $2.5 billion. - Digital Cameras: CEA is projecting 38 percent growth over 2001 to nine million units sold. - Electronic Gaming: CEA forecasts fifteen percent growth this year, with total 2002 sales to reach a record $3.7 billion, putting the total game industry at nearly $15 billion.- Mobile Electronics: CEA projects ten percent growth this year with big drivers coming from in-dash CD, satellite radio, mobile video, and navigation.2003 International CES Sets New Exhibit Space RecordShapiro noted that the upcoming 2003 International CES reflects the continued growth and success of the consumer electronics industry. He announced that the 2003 International CES will feature a record-breaking amount of exhibit space exceeding 1.2 million net square feet.""We are thrilled that the 2003 CES has surpassed our record breaking year in 2002 to claim the largest amount of exhibit space in our 36-year history,"" said Shapiro. ""CES truly is the World Cup of technology. Our show is as strong as ever with a healthy number of pre-registrants, a strong international presence and, of course, the latest and greatest in consumer technologies.""Five Predictions For The FutureContinuing his speech, Shapiro argued, ""We are only at the beginning of what electronics can and will do to change our lives. With the shift to digital electronics, we are now toddlers."" With this in mind, he offered five predictions about the future of consumer electronics. First, he predicted, sensing devices will become an integral part of consumer electronics. Shapiro said a shift to smaller, better technologies that sense changes in sound, light, smell, the environment, and the weather will become more plentiful and will be incorporated into future products. Second, Shapiro forecasted that video will ""go flat"" as plasma, LCD, and other technologies continue to improve and production costs continue to decline. ""Not only will wall TV become a reality for the average American, but also the walls increasingly will be the displays,"" Shapiro predicted.""Wireless will rule"" stood as Shapiro's third prediction. ""Wireless will grow as more people rely on it for many uses beyond voice transmission,"" stated Shapiro. ""CEA is particularly excited about the possibilities stemming from the potential uses of unlicensed spectrum. We are urging the Federal Communications Commission (FCC) to allocate more unlicensed spectrum for consumer electronics and broadband wireless technologies.""Building upon his prediction for wireless, Shapiro also proclaimed that in the future, connectivity will be king. ""All products will have a degree of connectivity with each other, many through the Web. And with our new focus on homeland security, expect new products to convey information for national security purposes,"" Shapiro said.Rounding out his predictions, Shapiro exclaimed that broadband is inevitable. ""We must and we will become linked with broadband,"" said Shapiro. ""Every generation has had a new pipeline into the home. Looking ahead, the pipeline will be invisible as wireless services and devices offer consumers new options and new freedoms. Provided adequate deregulation is granted by the FCC, incumbent carriers also will lay more fiber directly to end users, offering consumers more broadband choices in addition to today's cable and satellite offerings."" In closing, Shapiro again underscored his optimism about the industry's future. ""Undeniably, challenges exist, but digital technology is providing more possibilities for industry growth than ever,"" he said. ""The future indeed looks bright. And remember, we're only at the end of the beginning."" For more information about the CEA, visit www.ce.org.

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