Soaring streaming services to drive US consumer tech sales to $422 BN
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Joseph O'Halloran
| 06 January 2020

‘Skyrocketing’ popularity of streaming services and wireless earbuds along with 5G connectivity and artificial intelligence (AI)-enabled devices will drive revenue growth for the US consumer tech industry to a record $422 billion in retail revenues in 2020, says a Consumer Technology Association (CTA) report.

This would represent 4% annual growth, said the CTA’s twice yearly US Consumer Technology Sales and Forecasts report which reflects factory sales-to-dealers for over 300 consumer tech products and related software and services in the US.

Spending on software and streaming services — including music, video and video gaming — is projected to reach a new high of $81.2 billion in 2020, 11% growth over that taken in 2019. In the video segment, the research showed that award-winning original content and more big entrants to the video streaming wars will push consumer spending to $24.1 billion in 2020, up 29% year-on-year.

The survey also revealed that TVs are continuing their reign as the flagship technology in many US homes. Overall, TV US manufacturers are set to ship 40.8 million units in 2020, up 2% annually, driving $23.4 billion in revenue, flat with 2019, as new TV features drive interest for consumers.

The CTA says that replacement upgrades will be driven by bigger screens and TVs featuring 4K/Ultra UD resolution and high dynamic range (HDR). In 2020, 4K UHD sets are projected to account for 25 million units, representing a 12% increase compared with 2019, and $17.6 billion in revenue, up 2% annually also. In what could be a significant milestone for the segment, the report forecasts that 8K UHD TVs will cross the one billion-dollar revenue milestone, $1.6 billion in all, on the back of sales of 504,000 units.

“The last decade was about the Internet of Things – but now, we kick off a new decade defined by the Intelligence of Things,” said Steve Koenig, vice president of market research, CTA, commenting on the report. “Connected intelligence defines today’s device ecosystem from consumer favourites such as smartphones and TVs to an expanding universe of smart home solutions making intelligent living spaces a reality. Over the next 10 years, the dynamic of connected intelligence will grow apace with advancing 5G networks and innovative applications of AI to propel the consumer tech industry forward — and with it consumer experiences.”