The Consumer Electronics Association (CEA) is predicting that the demand for emerging technology, such as smart home and fitness devices, is redefining the consumer electronics landscape, according to its midyear sales and forecast report.
The association predicted that retail revenues for the consumer electronics industry are projected to grow 2.4% in 2015 to reach $285 billion. CEA said this growth is led by 101% year-over-year growth in emerging product categories, which include health and fitness and smart home technology, as “breakout stars,” it cited, among other developing technologies.
The CEA forecasted that the popularity of activity tracking devices, health and fitness devices will lead unit sales among all wearables in 2015 with a projected 20.3 million units, a 21% increase from last year. Revenue is projected to reach $1.8 billion in 2015, an 18% increase year-over-year.
As for the smart home, the CEA stated that the booming connected home technology industry is expected to reach $967 million in revenue in 2015, jumping 32% over last year. Products in this category include smart thermostats, smart smoke detectors, IP cameras, smart home systems, smart locks, connected switches, dimmers and outlets.
“Consumer technology is about constant and continuous innovation and that is what we are seeing in 2015,” said CEA president and CEO, Gary Shapiro. “As the technology industry naturally ebbs and flows, a new class of tech is generating lots of enthusiasm among consumers.”
The report noted that this midyear update is a slight downward adjustment from CEA’s projection in January, following slow economic growth in the first half of the year. As for 2016, CEA said it expected industry sales to grow by 2.7% with industry revenues reaching an all-time high of $228.8 billion.