consumer sales billion technology revenue us
US tech industry revenue to reach $351 billion – CTATHE US consumer technology industry, which serves as a benchmark for theglobal tech industry, is set to rake in a record-breaking $351 billion inretail revenues this year or 3.9% higher than 2017, according to new researchfrom the Consumer Technology Association (CTA).Released on Jan. 8, a day before the opening of Consumer Electronics Show(CES) 2018, the latest edition of the US Consumer Technology Sales andForecasts noted that projection will be driven by “excitement about emergingtechnologies and the resilience of historically leading categories.”The report also includes for the first time a projection for consumer spendingon music and video streaming services — valued at $19.5 billion in revenue,35% higher than just last year. CTA added streaming services sales — whichinclude internet-enabled services that deliver on-demand or linear videocontent (e.g., Netflix, Hulu and Sling TV) and on-demand audio content (e.g.,Spotify, Pandora or Apple Music) — to better capture the full expanse of theever evolving and expanding consumer technology market. Excluding the additionof streaming services, total industry revenue would increase by 2.2% in 2018.“Technology is improving our lives in more ways than ever — and consumerenthusiasm is growing just as quickly as companies can bring their innovationsto market,” said Gary Shapiro, CTA president and CEO, in a statement. “Ourforecast incorporates several key economic factors including a strong stockmarket, continued job growth and stable rules for international trade toforecast these record-setting sales for breakthrough technologies and longtimemarket leaders alike. And the driving themes of 2018, including voicecomputing, artificial intelligence and connectivity that make our lives betterand more efficient, will be on display across the show floor this week at CES2018.”CTA is the US’s largest tech trade association — its semi-annual report chartsthe size and growth of underlying product categories. The CTA consensusforecast reflects US factory sales-to-dealers for more than 300 consumer techproducts.EMERGING TECHNOLOGIES EXPAND Overall, US sales of connected devices are projected to reach 715 millionunits in 2018 — a 6.6% increase year-over-year. Specific products projected tocontribute significantly to this growth include smart speakers, smart home,virtual reality (VR), drones, and wearables.“Consumers are rapidly adopting new, emerging technology products — withvoice-activated smart speakers as the stand-out of 2017 and 2018 — sparkinggrowth in smart home devices, as voice interaction adds a new level ofconvenience and excitement to our lives,” said Brian Markwalter, senior vicepresident of research and standards, CTA.“At the same time, core categories – such as smartphones, laptops and TVs –continue to surpass expectations. 2018 will prove to be a milestone year forTVs, especially as LCD 4K UHD TVs make up half of all TVs sold in 2018.”MATURING TECHNOLOGIES CONTINUING The top five revenue categories will contribute just over half of totalwholesale industry revenue (51%) in 2018.Smartphones: Following the introduction of new flagship models from majormanufacturers in 2017, smartphones will continue to anchor the industry andsee slight growth in 2018. Unit volume will reach 189 million smartphones(two% increase) shipping in 2018, with revenues expected to reach $62.9billion (three% increase).Laptops: In 2018, the commercial and consumer laptop market will sell 50.1million units, up three% over last year, and earn $28.4 billion in revenue.Convertible models remain a high-growth area within computing.Televisions: Performing better than expected in 2017, unit sales of totaldigital displays in 2018 are projected to reach 44.2 million units (two%increase) and $22.1 billion in revenue (two% increase). Future category growthwill be driven by next gen features.4K Ultra High-Definition (4K UHD): For the first time, 4K UHD TVs will make uphalf of all total digital displays sold in 2018, with unit sales forecast tohit 22 million units (27% increase) generating $15.9 billion in revenue (14%increase).Automotive Electronics: Factory-installed automotive technology, from driver-assist features to entertainment systems, is projected to contribute $15.9billion in revenue (5.9% increase) – the result of strong automotive sales,propelled by a rising tide of tech, from sensors and artificial intelligenceto safety and infotainment systems.Tablets: After tremendous adoption in recent years, some tablet sales havebeen cannibalized by convertible, 2-in-1 laptops as standalone tablet adoptionhas leveled off and replacement cycles have slowed. Tablet sales will declinein 2018. CTA expects sales of 45.6 million units (12% decrease) and revenuesof $12.5 billion (13% decrease).CTA publishes the US Consumer Technology Sales and Forecasts twice a year, inJanuary and July, reporting US factory sales-to-dealers. It was designed andformulated 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 aschanges in trade laws, interest rates and federal policy.