Total Consumer Tech Revenue to Reach Record $377 Billion in 2018, Says CTA Mid-Year Report
ARLINGTON, Va.--(BUSINESS WIRE)--Jul 31, 2018--Artificial intelligence (AI), voice-recognition technology and fast connectivity – critical ingredients for smart speakers, smart home technologies and smartphones – will help spur overall U.S. consumer technology industry revenue to $377 billion in retail revenues in 2018, a six percent increase, according to the Consumer Technology Association (CTA). The mid-year update of CTA’s flagship report, U.S. Consumer Technology Sales and Forecasts, also shows whole home Wi-Fi solutions, wireless earbuds and augmented/virtual reality headsets will each cross the $1 billion wholesale revenue milestone for the first time this year.
“Innovations in AI, voice and connectivity are making tech devices more helpful and versatile, and changing our lives for the better,” said Gary Shapiro, president and CEO, CTA. “And thanks in part to economic factors including tax reform and high employment driving our economy forward, even more consumers are bringing these remarkable tech innovations into their lives. Although tariffs and the trade war threaten to unravel the strong economic momentum driving tech adoption and sales, the current state of the industry is exciting and healthy going into the second half of the year.”
The CTA forecast 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 technology industry, charting the size and growth of underlying product categories.
Key categories projected to contribute significantly to overall unit and revenue growth include:
“The new Internet of Things is the ‘Intelligence of Things’,” said Steve Koenig, vice president of market research, CTA. “Connected products tap AI to enhance services, especially in categories including smartphones, connected cars and smart home devices. And with 5G on our doorstep - the first 5G products will hit the market this year - we’re crossing into a new phase of faster and smarter connected devices.”
Top 3 Revenue Drivers – The Three Screens
The top three revenue drivers of the industry showing continued strength:
“We are undergoing a huge shift in how people consume content,” said Rick Kowalski, senior manager of market research and business intelligence, CTA. “Video streaming services are offering an increasing amount of exclusive content and live TV streaming options are becoming widely available this year – and that has more consumers exploring their over-the-top video options. Music streaming services continue to gain subscribers at a furious pace, luring regularly paying music listeners with attractive introductory offers and benefits such as ad-free listening. This remarkable growth in streaming services shows us that the phrase ‘content is king’ is more relevant than ever.”
CTA publishes the U.S. Consumer Technology Sales and Forecasts twice a year, in January and July, reporting U.S. factory sales-to-dealers. It was designed and formulated by CTA, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer technology industry. Multi-year projections cannot account for unpredictable factors such as changes in tariffs, trade laws, interest rates and federal policy. For more information, visit CTA.tech/salesandforecasts.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180731005589/en/
CONTACT: Consumer Technology Association (CTA)
Danielle Cassagnol, 703-907-5253
KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA
INDUSTRY KEYWORD: ENTERTAINMENT MUSIC TV AND RADIO TECHNOLOGY CONSUMER ELECTRONICS HARDWARE INTERNET NETWORKS SOFTWARE OTHER TECHNOLOGY PHOTOGRAPHY SECURITY GENERAL ENTERTAINMENT MOBILE/WIRELESS VOIP RETAIL OTHER RETAIL
SOURCE: Consumer Technology Association (CTA)
Copyright Business Wire 2018.
PUB: 07/31/2018 09:34 AM/DISC: 07/31/2018 09:34 AM