CES 2013: CEA Presents State of the Global CE Industry

The international viewpoint of CES was presented by CEA Director of Industry Analysis Steve Koenig during the State of the Global CE Industry pre-show event staged at the Mandalay Bay on Sunday, January 6th. While most major international markets suffered a 1 percent drop in GDP last year, it is expected that as developing economies improve we will still only see single digit growth during a modest recovery.

Developed markets will remain down or flat, according to projections by the Consumer Electronics Association and GfK Boutique Research. Growth drivers are centered on China’s internal market, and India will most likely experience small growth. Brazil was down 1 percent and expected to grow 4 percent this year.

Brazil is struggling to energize its growth engine, while Europe experienced 4 percent negative growth and any recovery is expected to be closer to flat. Japan is also flat. The U.S. may reach 2 percent growth, viewed in this context as good depending on fiscal issues that will be addressed by congressional moves.

Developing economies will lead the bounce back over the next year and lead steady growth as mature markets stutter. The rate of growth between 2009 and next year is projected  to be about six times in developing areas as they move strongly towards mobile solutions.

Tablets and smartphones will dominate many areas. Sixteen percent of adults had a tablet on their holiday wish list. Mobile devices are driving the market, equally contributing to the national and global marketplace, while there is a collapse of some categories as they soak up new tasks. This may drive new form factors as this trend continues.

Emerging markets may double the growth of mature economies over the next year and drive innovation as these devices accommodate even more traditional product tasks.

Countries with fast-growing economies and large emerging middle classes are not surprisingly expected to lead the way in new CE revenue growth.

You can access the State of the Global CE Industry slideshow on the CEA site. Key takeaways according to the summary slide:

  • Global tech device spending to return to growth in 2013.
  • Emerging markets still setting the pace, but it’s a slower pace.
  • Smartphones and tablets soaking up the growth, defying lower growth environment.
  • Smartphones and tablet growth coming from product diversification, lower price devices.
  • TV upscaling important opportunities for the industry, but not game changers.

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