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2000 Will Ring In Record Growth In Consumer Electronics Sales
Digital Technologies And Workstyle Products Continue To Drive Sales
Total sales of consumer electronics products will hit a record $85 billion in 2000, according to projections released today by the Consumer Electronics Association (CEA). This figure represents the 8th consecutive year of growth for the industry. CEA also announced that total consumer electronics sales will reach $81 billion in 1999, a 7 percent increase over the 1998 figure of $75 billion. ""The consumer electronics industry is on a roll as we enter the new millennium,"" said CEA President and CEO Gary Shapiro. ""Consumers continue to embrace the exciting array of products made possible by digital technology. We anticipate even further growth as the lines between traditional information technology and consumer electronics products blur, enabling manufacturers to offer new products to enhance consumersí workstyles and lifestyles. Add to this mix the opportunities presented by e-commerce and you can see why weíre so bullish about the future."" Reflecting consumersí continuing desire for workstyle technologies - products that enable them to work when, where and how they wish - the home information category is projected to grow by 6.5 percent in 2000 with sales of $37 billion. Within the category, CEA estimates that a full 54 percent of all U.S. households own a personal computer (PC). Total PC sales will hit a record $16.8 billion in 2000 with 16.8 million units expected to be sold. Sales of computer printers, modems and fax modems, monitors and other computer peripherals will add another $10 billion in sales to the computer hardware category. PC software will surpass $5.2 billion in sales, marking a full 16 percent rise from 1999. Elsewhere within the home information category, sales of corded and cordless telephones will hit 80 million units on total dollar sales of $2.4 billion. Sales of wireless telephones are expected to reach 18 million units, with total sales of $3 million in 2000, rising above 1999 sales of 15.5 million units. Sales of pagers to consumers will rise 13 percent, reaching $750 million. Digital camera sales have exploded in recent years, growing more than 590 percent from 1996 to 1999. Sales of digital cameras hit 2 million units in 1999, a 75 percent increase over 1998. This year, unit sales will rise to 2.6 million on $905 million in sales. Sales of traditional lifestyle products also will remain strong in 2000. Within the video category, digital versatile disc (DVD) players are expected to continue their phenomenal growth. In 1999, DVD players became the fastest selling product in the history of consumer electronics, with more than 4 million units sold during the year. That figure is up 371 percent over 1998 sales, far surpassing CEAís original estimate of 1.6 million units. CEA projects sales of roughly $1.5 billion in 2000 with some 6.5 billion units expected to be sold. ""Consumers love the high-quality picture and sound presented by DVD as well as its interactivity,"" said Shapiro. ""The rapid growth of DVD portends good things for new digital video products such as digital television and personal video recorders."" Televisions will continue to stand as the centerpiece of home consumer electronics with more than 42 million TVs (including direct-view, TV/VCR combinations, LCD, projection and monochrome models) to be sold in 2000. TV/VCR units will remain a hot seller in 2000, as unit sales increase 8 percent, rising from 4.3 million units in 1999 to 4.6 million units in 2000. Following a strong year of sales in 1999, with more than 90,000 units sold, digital television sales are expected to rise to 600,000 in 2000 as more content and new products are introduced. DTV sales since introduction in November 1998 are expected to surpass CEAís projection of 120,000 units by the end of 1999, standing at 110,000 units as of November. Sales of direct-to-home satellite systems also are expected to climb in 2000 as providers continue to offer subscribers access to their local network signals thanks to a new law passed in late 1999. Following on the heels of 34 percent growth from 1998 to 1999, system installations are expected to climb from 3.6 million in 1999 to 4.1 million in 2000. Total 2000 sales will reach $992 million. Overall, sales of home and portable audio products will decline by 3 percent. However, with more than $5.6 billion in projected sales for 2000, audio products remain a popular choice for consumers. CD players top the list of audio best-sellers with 47 million players to be sold in 2000, equaling total dollar sales of $4.5 billion. CEA also estimates that almost 27 million portable headset audio products (including radios, tape players, radio/tape combos and CD players) will be sold this year along with 19 million home radios, meaning that approximately one out of every five U.S. households will purchase a home radio in 2000. Sales of home theater-in-a-box products will reach $239 million in 2000 as more and more consumers recreate the cinema experience in their homes. Unit sales of home theater-in-a-box products will increase from 833 thousand in 1999 to 880 thousand in 2000. Consumers continue to demand access to information and entertainment as well as stay in touch with friends and family while on the go. Sales of mobile electronics will reach $9.1 million in 2000, an 8 percent increase over 1999. Autosound equipment (both factory installed and aftermarket) will enjoy a projected increase of 6 percent, with sales topping $4.9 billion. As total sales of consumer electronics products reach an all-time high, the need for accessory products continues to grow. CEA estimates that 2000 accessory sales will reach $1.4 billion, rising a solid 5 percent in 2000. Sales of gaming hardware and software are expected to rise by roughly 16 percent in 2000, following a five-year period in which sales have increased by approximately 60 percent. Consumer electronics products continue to improve the way Americans work, play, receive information, maintain their safety and keep in touch with friends and family. The average American household spends $1,000 per year on consumer electronics - twice as much as it spends on furniture, toys, sporting goods or jewelry. Color televisions are in 98 percent of all U.S. households. More than 93 million U.S. households own at least one VCR. Ninety-eight million U.S. households own a home radio, while 57 million have a home audio separate component system. Overall, U.S. consumers have invested more than $407 billion on approximately 1.6 billion consumer electronics products. ""Consumer electronics are everywhere, bringing us entertainment, information and just plain fun,"" noted Shapiro. ""And thereís more excitement ahead: home networking, personal video recorders, remote Web access devices and digital television are only a few of the products that will soon revolutionize the way we work, play and learn. Weíre at the dawn of an exciting new era ushered in by digital technology."" 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. CEAís consensus report is published twice a year and is distributed free-of-charge to all CEA members. Non-members may obtain a single copy at a cost of $120, or $200 for an annual subscription. The entire report may be purchased on the CEA Market Research Web site, www.eBrain.org.