million billion 2021 tech revenue shipments reach

techsuch May 9, 2021 0 Comments

Tech industry revenue to jump 4.3% in 2021The retail sales revenue for the technology industry will reach $461 billionin the U.S. in 2021 – a 4.3% increase year-over-year – according to a newreport by the Consumer Technology Association (CTA). As millions of Americansremain home and rely on tech to stay entertained, connected and healthy duringthe pandemic, streaming services, 5G connectivity and digital health deviceswill stand out in the tech sector in 2021.“The pandemic has pushed the fast-forward button on tech adoption – from ourhomes to our work to our doctor’s offices,” said Gary Shapiro, president andCEO, CTA. “While the road to a full economic recovery is long and intertwinedwith a complex vaccine rollout, the tech industry’s ability to meet the momentduring this crisis has been critical.”CTA’s twice-yearly U.S. Consumer Technology One-Year Industry Forecastreflects manufacturer shipments to the U.S. for over 300 tech products, andrelated software and services.#### Tech That Keeps Us EntertainedSoftware and Streaming Services – Total spending on streaming services andsoftware is projected to reach a record high of $112 billion in 2021 (11%growth over 2020). This follows 31% growth in 2020 over 2019.* Video: Exclusive content and cord-cutting are driving multiple subscriptions per household to push spending to $41 billion in 2021, up 15% over last year.* Audio: Music, audio book and podcast listening, with services including Apple Music and Pandora are expected to reach $10 billion in revenue, up 19% over last year.* Gaming: U.S. households are playing video games more than ever before, for entertainment or staying connected socially. CTA projects the video game software and services category will reach $47 billion in revenue this year, up 8% from 2020.Gaming Consoles: The highly anticipated release of next-gen game consolesfrom Microsoft and Sony will continue to drive sales, as the supply chaincatches up with consumer demand. Combined home and portable console shipmentswill reach 18 million units in 2021, up 3%, earning $6 billion in revenue (up16%).Televisions: Households channeled discretionary dollars into upgrading TVs ina record-setting year for shipments in 2020. CTA expects steady demand fordisplays in 2021 as TVs remain the centerpiece for entertainment in homes.Television shipments will drop 8% to 43 million units in 2021, the second-highest volume on record, while revenues will decline just 1% to $22 billion.Growth areas for TVs in 2021 include sets over 70-inches (3.3 million units,up 6%) and 8K Ultra High-Definition TVs (1.7 million units, up 300%).#### Tech That Keeps Us ConnectedSmartphones: Shipments will increase 4% to 161 million units, earning $73billion in revenue (up 5% over last year), following a year of slightdeclines. Over 67 million 5G smartphones are expected to ship in 2021 (298%growth over last year for the nascent category) and generate $39 billion inrevenue (a 218% jump), as consumer awareness of 5G grows and service isavailable in more locations across the country.Laptops: 2020 was a record year for laptops (enterprise and consumer), withmore families than ever working and learning from home. CTA expects laptopshipments will remain strong in 2021, reaching 69 million units (up 1% overlast year) and earning $38 billion in revenue (down 2%).Wireless Audio: For the first time ever in 2020, total wireless headphone andearbud shipments surpassed wired headphones and earbuds. True wirelessearbuds, including Apple AirPods and Samsung Galaxy Buds, are driving growth,with 91 million units expected to ship in 2021 (up 32%), representing $9.3billion in revenue (up 16%).DIY Smart Home Products: With millions of Americans spending more time athome, safety and convenience upgrades are top of mind, driving DIY smart homeproducts shipments to 99 million units in 2021(up 9%), and $15 billion (up3%). Category growth drivers include smart displays, smart doorbells and smartappliances.#### Tech That Keeps Us HealthyConnected Health: As more people monitor potential COVID-19 symptoms and moremanage chronic conditions from home using devices such as smart thermometers,pulse oximeters and blood pressure monitors, shipments of connected healthmonitoring devices will grow to 14 million devices in 2021 (up 35%) and earn$845 million in revenue (up 34%). The entire health and fitness technologycategory, including smartwatches and fitness activity trackers, will increase13% in 2021 to reach 69 million units and $9 billion in revenue (up 6%).Electric Bikes: Included in CTA’s forecast for the first time, personalmobility options such as electric bikes will see growth as people remain waryof public transportation during the pandemic. In 2021, electric bikes willreach 1.6 million units, up 60%, and $2.6 billion in revenue, up 44%.“Tech demand in the first several months of 2021 will look a lot like the lastfew months of 2020,” said Rick Kowalski, director of industry analysis andbusiness intelligence, CTA. “Streaming services, 5G connectivity and digitalhealth devices will push consumer tech forward in the year ahead as innovativetechnologies prove their resilience during challenging times. The industry’sability to meet societal needs in a variety of circumstances will bring growthin 2021 as the world emerges from the pandemic.”

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