Artificial intelligence (AI) and fast connectivity – critical ingredients for the next era of category leaders such as smartphones, smart home devices and smart speakers – will drive the U.S. consumer technology industry to a record-breaking $398 billion in retail revenues ($301 billion wholesale) in 2019 and 3.9% year-over-year (YOY) growth, which includes streaming services revenue, according to the Consumer Technology Association (CTA).
“The consumer tech sector is fast approaching another milestone – almost $400 billion in annual revenues – as more consumers embrace the efficiency, safety, entertainment and anytime/anywhere communication that technology brings to our everyday lives,” said Gary Shapiro, president and CEO, CTA. “Our latest research shows innovations in AI and faster connectivity are among the key drivers for the industry’s record growth. And CES 2019 is the very best place to see, touch, try and experience the game-changing technologies – from augmented and virtual reality to smart cities, sports tech and robotics – that are solving challenges big and small.”
The latest edition of CTA’s flagship, semi-annual U.S. Consumer Technology Sales and Forecasts report reflects U.S. factory sales-to-dealers for more than 300 consumer tech products and related software and services. The biannual report serves as a benchmark for the U.S. consumer tech industry, charting the size and growth of underlying categories.
Among the products projected to contribute significantly to the consumer tech sector’s growth in 2019 are smart speakers, smart home products, and wireless earbuds such as Apple’s AirPods, and smartwatches such as the Apple Watch. CTA says the top three revenue drivers for the industry — smartphones, laptops, and TVs — show continued success.
Consumer spending on music and video streaming services is valued at $26 billion in revenue, 25% higher than last year. The availability of live TV streaming and exclusive, award-winning content through subscription video streaming services will push consumer spending to $18 billion in 2019, up 27% from 2018. On-demand music services (e.g., Spotify, Pandora or Apple Music) will bring in an expected $7.7 billion in revenue, up 22 percent as providers race to gain subscribers. For more information, visit CTA.tech/salesandforecasts.