A decline in the worldwide technology market is seen this year as the sector's robust growth in developing economies slows down and firms still have not found fresh gadgets that could take the place of the smartphone, the Financial Times reported. Citing forecasts given by the Consumer Electronics Association or CEA, the report said the sales of technology products is set to go down 1% this year even as it went up during the financial crisis due to a shift towards mobile devices. The CEA gave the forecast before the International Consumer Electronics Show that will run in Las Vegas from January 7 to 10.

CEA Director of Industry Analysis Steve Koenig told the FT that the industry still has not found a new driver that could take the place of mobile devices like smartphones and tablets and fuel growth. Although wearable devices like smartwatches and WiFi-enabled thermostats that could pave a new era of connected homes may cause a stir at the fair, it still remains to be seen if they would be accepted in the mass market, the report said.

Koenig said, "We're waiting for the next wave of innovation to help lift it again." He added that technology firms had already removed the "cream off the top" as high-end mobile devices have become quickly adopted in the west as well as in major cities in developing countries. Koenig said, "The industry will be increasingly reliant on lower-end devices that are required to penetrate more deeply into emerging markets."   

CEA forecasts showed that although volume growth will remain strong, the price of the average smartphone is set to drop to $297 this year from an average price of $444 in 2010. The CEA also said that a slight decline in the sector's growth could be felt in 2014. Last year, the sector grew 3% to $1.068 trillion but this is seen to decrease to $1.055 trillion this year, the report said.