LAS VEGAS -- US shipments of consumer electronics will be flat at $171 billion in 2009, according to the semiannual industry forecast released by the Consumer Electronics Association.

“The CE industry is resilient but not immune from the business cycle," CEA president and CEO Gary Shapiro said. “Innovation will kick-start the economy."

Consumer electronics 2008 shipment revenues hit new high of $172 billion, up 5.4% over 2007. In 2009, CEA projects domestic shipment revenues will essentially remain flat at $171 billion, down 0.6% year-on-year.

The primary revenue driver for the industry continues to be digital TV displays, representing 15% of total shipment dollars. As the transition to digital television nears, unit shipments of DTVs will approach 35 million in 2009, an increase of nearly 6% over 2008. LCD displays remain the top choice among consumers, representing 77% of total DTV units.

With the format war now settled, Blu-ray players are expected to see major growth in 2009. With more content, new products and lower prices, Blu-Ray revenues are projected to surpass $1.2 billion. The gaming category also remains a bright spot in the CE industry and an increasing component of consumer spending.

The overall video game market should grow 11%, generating nearly $22 billion in revenue this year, a new high mark for the category. Software continues to drive the segment, making up $15 billion of the overall sales.

Smartphone revenues will continue to grow this year, increasing nearly 20% this year, to $13.6 billion. As carriers increase the speed of their networks and offer new services in addition to communication, smartphones will account for more than 60% of total handset revenues.