ARLINGTON, VA -- The consumer electronics market will see overall shipment revenues decline 7.7% in 2009, according to new data from the Consumer Electronics Association.

The semiannual U.S. Consumer Electronics Sales and Forecast shows that industry revenues will contract to $165 billion in 2009 before rebounding slightly in 2010. It would mark the first decline for the sector since 2001.

In a press release, the trade group cited several market forces as contributing to lower revenues, including lower consumer spending, price declines and compositional shifts in key product categories.

CEA’s forecast projects industry revenues will bottom out by the second half this year, followed by a less than 1% increase in 2010.

Digital displays continue to be the primary revenue driver for the industry, comprising 15% of overall industry sales. Unit shipments of displays remain robust, projected to be up 8% in 2009. LCDs remain the display of choice for consumers with unit volumes jumping 24%. Lower price points and an increase in consumer demand for mid-size displays are reducing revenue. TV display shipment revenues are expected to drop 6% this year to $24 billion.

One year after emerging as the next-generation DVD format of choice, Blu-ray players are poised for growth in 2009. Unit shipments of Blu-ray players will jump 112% this year, reaching nearly six million. Even as prices drop, revenues are expected to top $1 billion, up 48% over 2008.

Smartphone shipment revenues will increase almost 3% to nearly $14 billion, despite declines in average unit prices. Smartphones will account for one in four total handset sales this year as consumers continue to seek devices capable of Internet access, navigation and media playback.

CEA’s updated sales and forecast also shows netbook momentum is building within the PC category. Unit shipments are forecasted to nearly double in 2009, rising 85% to 8.5 million units. ;Even as more consumers opt for lower-priced netbooks, the category will reach $3.4 billion in revenue in 2009.

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