Consumers will find lower prices on many tech products in 2024, underscoring the deflationary nature of technology
ARLINGTON, Va., Jan. 5, 2024 /PRNewswire/ -- Leading into CES® 2024, the Consumer Technology Association® projects retail revenues for the U.S. consumer technology industry will grow 2.8% in 2024 to $512 billion (up $14 billion from 2023). This signals an uptick in consumer spending on technology products and services, according to CTA's One-Year Industry Forecast.
"Despite inflation in most sectors of the U.S. economy, it's noteworthy that consumer tech products like TVs, smartphones, and gaming hardware are being bought at lower prices by consumers," said Richard Kowalski, Sr. Director of Business Intelligence at CTA. "Technology by nature is deflationary as innovation leads industries to find newer, more efficient ways to compete. Looking ahead to 2024, I expect developments in artificial intelligence will accelerate growth for consumer and enterprise technology companies as they become more efficient and find more ways to meet consumer needs."
Trends to Watch in 2024:
- The Year of the Megabundle: Content providers will increase their promotion of "service bundles" to draw more consumer interest. Megabundles have the potential to offer consumers discounted rates on their favorite services while also simplifying their payment process.
- Streaming Up: Consumers will spend $14 billion (up 6% over 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
- Gaming Hardware Boom: Product refreshes in tablets, augmented and virtual reality headsets and gaming (Major brand console refresh in 2024/2025) will boost gaming revenues in 2024. Gaming will also be amplified by 12% growth in subscription services (growing to $3.5 billion in 2024). Generative artificial intelligence is expected to improve the gaming experience while also helping developers bring games to market faster.
- Devices and Services Go Hand-in-Hand: Services continue to be an essential part of product purchase, as seen through growth in the services segment. CTA estimates that 25% of all consumer spending on tech was for various software and subscription services in 2019. In just 5 years to 2024, CTA projects the same services to be just under one-third of all consumer spending.
- Believe the AI Hype: Over 230 million smartphones and PCs shipping to the U.S. this year will tap the powers of generative AI through mobile apps, browsers and on-device software. AI is being deployed in mobility safety systems, fitness tracking apps on smartwatches and picture quality improvements on televisions.
"I am excited by the breadth of innovation I'm seeing from companies large and small going into CES 2024," said Gary Shapiro, president and CEO, CTA. "By embracing pro-innovation regulatory policies, encouraging investment, reforming immigration to embrace global talent, and enhancing trade partnerships that strengthen innovation, we can drive innovation benefiting all people.
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Methodology
Twice each year since 1967, CTA updates its forecast of more than 125 consumer technology products and services. This forecast serves as the benchmark for the consumer technology industry, charting the size and growth of underlying categories and the industry. It is used by manufacturers and retailers for creating product development plans; financial analysts for sizing market opportunities; industry and general media for providing context in their coverage; government staff for understanding the scope of the industry to guide policy decisions; and CTA itself for highlighting the successes and challenges of the industry. Sign up for CTA Research Insights.
About Consumer Technology Association:
As North America's largest technology trade association, CTA® is the tech sector. Our members are the world's leading innovators – from startups to global brands – helping support more than 18 million American jobs. CTA owns and produces CES® – the most powerful tech event in the world. Find us at CTA.tech. Follow us @CTAtech.
SOURCE Consumer Technology Association
