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Total Consumer Tech Revenue Will Reach Record $398 Billion in 2019


Morgan Hatfield, Social Media Intern, Consumer Technology Association

According to our new U.S. Consumer Technology Sales and Forecasts report, artificial intelligence (AI) and fast connectivity such as 5G will drive the U.S. consumer tech industry to a record breaking $398 billion in retail revenues in 2019. This biannual report reflects the factory sales-to-dealers for more than 300 consumer tech products and related software and services and serves as a benchmark for the U.S. consumer tech industry, charting size and growth of underlying categories.

Among the emerging technologies projected to contribute significantly to the consumer tech sector’s growth in 2019 are:

  • Smart Speakers: Voice-controlled smart speakers are projected to earn $3.2 billion in revenue. Smart speakers continue to be a category to watch as consumers embrace the benefits of AI in the home.

  • Smart Home: Products that address home monitoring and security are driving the smart home category. Smart home tech is projected to earn $4.6 billion in revenue.

  • Wireless Earbuds: Projected to approach $2 billion in revenue this year, wireless earbuds are a standout audio product with double digit growth projected for the next few years.

  • Smartwatches: Revenues for this category are expected to reach $4.7 billion, with fitness tech companies shifting their focus from basic trackers to more sophisticated wearables.

  • Drones: Total drone sales are expected to reach just over $1 billion in revenue this year as more consumers and businesses turn to drones for aerial photographing, racing, and recreational uses.

The top three revenue drivers for the consumer tech industry are smartphones, laptops, and televisions. 2019 marks the launch of 5G smartphones on the market with an expected $1 billion in revenue. Laptops continue to be upgraded with new operating systems, convertible models, and cloud-based systems with projected earnings of $28.4 billion in revenue this year. 4K Ultra High-Definition (UHD), 8K UHD, and OLED televisions are driving consumers to upgrade. This division of the tech industry is expected to reach $22.6 billion in revenue.

Streaming services are valued at $26 billion in revenue for 2019, which is 25 percent higher than last year. Streaming live TV and exclusive content through video streaming services will continue to push consumer spending to $18 billion in revenue. Music streaming will bring in an expected $7.7 billion in revenue as providers continue to gain subscribers.
 
CTA publishes the U.S. Consumer Technology Sales and Forecasts twice a year, in January and July, reporting U.S. factory sales-to-dealers. For more information, visit www.CTA.tech/salesandforecasts.

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