Technological Innovation Will Continue Consumer Electronics Growth Cycle

July 13, 2007
Global market will grow 11% in 2007.

The global consumer electronics market will increase 11% in 2007 -- hitting $155 billion. In 2006 the global market was $140 billion with the U.S. market holding the lion's share at $109 billion. In 2007 the U.S. market could reach $120 billion. The market growth stems from the ongoing technological innovations which are expected to continue according to global trade credit insurer Euler Hermes ACI.

"The sector appears to be in fine form," said a report from Euler Hermes ACI. "Consumer passion for digital technology is widespread, with steadily falling prices for goods such as cameras, MP3 players, and LCD and plasma screen televisions strongly contributing to this."

Falling prices could be a concern to manufacturers however. "The less expensive electronics prices could be a harmful development for the companies that are providing the materials to manufacture the machines," said Patrick Lane of Euler Hermes. "The steep discounts by manufacturers may result in much lower margins and profitability."

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