revenue million billion 2020 last smart industry

techsuch May 9, 2021 0 Comments

U.S. tech industry revenue to decline 2.2%Source: Getty ImagesTechnology industry retail sales revenue will reach $406.8-billion in 2020 inthe U.S. – a 2.2% decline year-over-year – as consumers struggle with economicuncertainty from the COVID-19 pandemic, according to a new report by theConsumer Technology Association (CTA). The report also finds consumer spendingon streaming services and connected health devices will perform better thanexpected amid the pandemic.While this year’s revenue decline marks the industry’s first since 2009, thetech industry’s 2.2% loss in 2020 reflects its strength relative to theoverall U.S. economy’s anticipated rate of decline. Looking ahead to 2021, CTAprojects tech industry revenue will rebound with projected revenue growth of5.2%.“The tech sector is an industry of solutions, playing an indispensable role inour lives during a difficult time,” said Gary Shapiro, president and CEO, CTA.“Technology innovations have kept us connected, productive and entertainedduring social distancing. While today’s economic uncertainty will impact thebottom line, sales are close to stable — an incredible feat given brick-and-mortar store closures and the skyrocketing rate of personal savings. The techindustry is resilient and will help our nation recover from this crisis.”CTA’s twice-yearly U.S. Consumer Technology One-Year Industry Forecastreflects U.S. manufacturer shipments for more than 300 consumer tech productsand related software and services. factored four major considerations into the2020 projections, including longevity of the COVID-19 health crisis, economichardship placing downward pressure on consumer spending, unemployment ratesand supply chain issues.#### High-Growth CategoriesSoftware and Streaming Services – Spending on streaming and software servicesincluding audio, video and video gaming have risen amid stay-at-home orders,and are projected to reach a record high of $86 billion in 2020 (14% growthover last year).* Video: Millions of American households have turned to video streaming services for entertainment during the pandemic, pushing consumer spending to $27 billion in 2020, up 23% over last year. * Audio: With consumers embracing podcasts, audio books and music, audio services such as Apple Music, Pandora and Spotify will reach $8 billion in revenue, up 21%.* Video Gaming: Also witnessing growth as Americans shelter in place, the video game software and services category will reach $40 billion in revenue this year, up 10%. Connected Health: Shipments of health and fitness technologies such assmartwatches, fitness activity trackers and connected health monitoringdevices are projected to rise to 58 million units in 2020, up 4% over lastyear, reaching $8.4 million in revenue (down 4%). The devices seeing thefastest growth include pulse oximeters, blood pressure monitors and connectedthermometers. As a result of consumers monitoring potential COVID-19 symptomsand an increase in people managing chronic conditions from home, shipments ofconnected health monitoring devices will grow to 10 million units in 2020 (up75%) and earn $632 million in revenue (up 73%).True Wireless Earbuds: Devices such as Apple AirPods or Samsung Galaxy Budswill see strong growth in 2020, selling 67.5 million total units in 2020 (up50%), earning almost $8 billion in revenue (up 29%). Millions of Americans usethese devices as they work from home, and devices at various price points arecoming on the market.Gaming Consoles: The highly anticipated release of the next generation of homegaming consoles this fall will boost 2020 shipments to 13 million units, a 5%increase over last year, earning $3.9 billion in revenue (up 7%).“Technology brings undeniable value during a time like this,” said RichardKowalski, director of industry analysis and business intelligence, CTA. “Whilethere is uncertainty and risk, we see so many bright spots in the techindustry as consumers embrace technology to keep connected, stay healthy andhave fun.”#### Top Revenue CategoriesSmartphones: The pandemic and resulting economic downturn will impactsmartphones, the largest revenue generator in the industry. Shipments willdecrease 6% to 153 million units, earning $72 billion in revenue (down 6% overlast year). A bright spot in this market will be 5G smartphones, with majorproduct announcements expected in the fall. Over 14 million 5G smartphones areexpected to ship in 2020 (800% growth over last year) and generate $11 billionin revenue (a 665% jump), following last year’s market introduction.Laptops: Despite a surge during stay-at-home orders that pulled sales forward,laptop shipments will be down 2% over last year to 52 million units, and earn$31 billion in revenue (down 7%), as result of reduced consumer and enterprisespending.Televisions: Similar to laptops, purchases of TVs were also pulled forward forthe year, but the jump in sales will not offset an expected annual decline dueto the economic downturn and loss of live sports. Overall, TV manufacturerswill ship 39 million units in 2020 (a 6% decrease from 2019) and earn $21billion in revenue (down 14%). Growth areas for TV sales in 2020 include 4KUltra High-Definition (4K UHD) TVs, which will account for about 25 millionunits (a 10% increase over last year) and 8K UHD TVs which will ship over900,000 units (up 350% since last year’s U.S. market introduction).DIY Smart Home Products: Now among the largest revenue-generating categories,DIY smart home product sales – such as smart speakers and displays, smartappliances, smart doorbells and locks, Wi-Fi cameras, smart thermostats andhome robots – will rise to 88 million units (12% growth) and $13 billion (6%decrease). Category growth drivers include smart displays, smart doorbells andsmart door locks

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