- Consumer Technology Association President and CEO Gary Shapiro pointed out that the consumer technology U.S. sales are poised to hit a record $422 billion in 2020
In an announcement, Consumer Technology Association President and CEO Gary Shapiro pointed out that the consumer technology U.S. sales are poised to hit a record $422 billion in 2020. This is nearly a 4% growth over last year.
The rapid growth of streaming services and wireless earbuds along with 5G connectivity and AI-enabled devices are especially expected to drive revenue growth. These details were revealed in CTA’s twice-yearly U.S. Consumer Technology Sales and Forecasts report.
For 2020, the CTA forecast also provided an overall number for digital health devices, including smartwatches, fitness trackers, and connected health monitoring devices like blood pressure monitors and smart scales. The digital health category is expected to sell 64 million devices and a total of $10 billion dollars this year.
“More and more consumers are embracing the faster connectivity, advanced intelligence, and seemingly infinite content that technology offers today – pushing consumer technology industry revenues toward another record-setting year in 2020,” said Shapiro in a statement. “We’ll see advancements in 5G connectivity and AI play out across the CES 2020 show floor this week – from digital health to self-driving vehicles and smart homes – vital technologies that are changing our lives for the better.”
Software And Streaming
The spending on software and streaming services, including music, video and video gaming is expected to reach $81.2 billion in 2020 (11% growth over last year).
Devices like Apple AirPods and Samsung Galaxy Buds are expected to drive the category in 2020 to nearly 67 million units in 2020 (up 35%) with earnings of about $8.2 billion in revenue (up 31%). Smart home devices like smart doorbells and locks are expected to hit 35.2 million units (15% jump) and $4.3 billion (4% increase). And smart speakers like Google Home, Amazon Echo, or Apple HomePod are expected to hit 39 million units sold (up 5% over last year) and $4.2 billion in revenue (14% increase) in 2020.
“The last decade was about the Internet of Things – but now, we kick off a new decade defined by the Intelligence of Things,” explained Consumer Technology Association VP of Research Steve Koenig. “Connected intelligence defines today’s device ecosystem from consumer favorites such as smartphones and TVs to an expanding universe of smart home solutions making intelligent living spaces a reality. Over the next 10 years, the dynamic of connected intelligence will grow apace with advancing 5G networks and innovative applications of AI to propel the consumer tech industry forward — and with it consumer experiences, safety, health and more.”
Top Revenue Categories
Following a dip in 2019, smartphones will recoup losses with an uptick in 5G-enabled smartphone shipments this year with a projection to reach 166 million units (2% increase) and earn $79 billion in revenue (up 3%) in 2020.
Laptops will be maintaining their lead as the most popular personal computing device with nearly 53 million laptops will ship in 2020, up 1% over last year and will earn $33.3 billion in revenue (up 1%).
Plus TV manufacturers will ship 40.8 million units in 2020 (2% increase) and drive $23.4 billion in revenue (flat with 2019) as new TV features drive interest for consumers.
And the factory-installed in-vehicle technology will grow by 6% to $18.5 billion in revenue in 2020 as autonomous safety and entertainment features in new car models will drive revenue growth.
More manufacturers are likely going to include advanced driver-assistance systems (ADAS) features like automatic emergency braking systems, active lane-keeping, and more.
The CTA publishes its flagship U.S. Consumer Technology Sales and Forecasts twice a year (January and July) — which reports factory sales to U.S. dealers. The CTA is the largest technology trade association and its members are the world’s leading innovators which help support over 18 million American jobs.