ARLINGTON, Va.—As technologists gather in Las Vegas for CES2024, the Consumer Technology Association is projecting that retail revenues for the U.S. consumer technology industry will grow modestly by 2.8% in 2024 to $512 billion (up $14 billion from 2023).
The CTA is also predicting that consumers will spend $14 billion (up 6% over 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
“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, senior 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.”
In its new projections for 2024, the CTA highlighted a number of trends.
- 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.
- 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.
- 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.
