The Consumer Technology Association (CTA) has forecasted that retail revenues within the U.S. consumer technology sector will grow 2.8 percent or $14 billion in 2024 to $512 billion.
This forecast signifies a notable upswing in consumer spending on technology-related products and services, as outlined in the CTA’s One-Year Industry Forecast.
Richard Kowalski, Sr. Director of Business Intelligence at CTA, remarked on the intriguing dynamics within the industry, stating, “Despite inflation affecting various sectors of the U.S. economy, it’s remarkable to note that consumer tech commodities such as TVs, smartphones, and gaming hardware are being acquired by consumers at reduced prices.”
Key trends highlighted for 2024 encompass various facets:
The Year of the Megabundle: Content providers are poised to intensify their promotion of “service bundles” to allure greater consumer interest. Megabundles are anticipated to offer discounted rates on favored services, streamlining the payment process for consumers.
Streaming Upsurge: Projections indicate a 6 percent increase (reaching $14 billion) in consumer spending on audio streaming services and a 4 percent uptick (reaching $48 billion) in video streaming expenditures in 2024.
Gaming Hardware Surge: The market will witness product upgrades in tablets, augmented and virtual reality headsets, and gaming consoles, expected to elevate gaming revenues. Subscriptions within the gaming sector are anticipated to amplify by 12 percent, reaching $3.5 billion in 2024. The integration of generative artificial intelligence is predicted to enhance gaming experiences while expediting game development processes.
Synergy between Devices and Services: Services continue to be a pivotal element in consumer product purchases, illustrated by robust growth within the services segment. CTA estimates that by 2024, approximately one-third of consumer tech spending will be directed towards various software and subscription services.
AI’s Proliferation: Over 230 million smartphones and PCs anticipated to be shipped to the U.S. in 2024 will harness the capabilities of generative AI across mobile applications, browsers, and on-device software. AI deployment spans mobility safety systems, fitness tracking applications on smartwatches, and enhancements in television picture quality.
Gary Shapiro, president and CEO of CTA, expressed enthusiasm for the forthcoming innovations showcased at CES 2024. He underscored the importance of pro-innovation regulatory policies, investment encouragement, immigration reform to embrace global talent, and fortified trade partnerships as catalysts for driving innovation that benefits people.