A forecast from the Consumer Technology Association predicts a 2.8% growth in U.S. consumer technology retail revenues, reaching $512 billion in 2024. This marks a $14 billion increase from 2023 and indicates a rise in consumer spending on tech products and services.
Despite inflation in various sectors, the CTA notes that tech products such as smartphones, TVs and gaming hardware are being purchased at lower prices, emphasising the deflationary nature of technology driven by innovation.
Looking ahead to 2024, the CTA anticipates that developments in artificial intelligence will accelerate growth for consumer technology companies, making them more efficient and responsive to consumer needs. The association also highlights several trends for the year:
Gaming hardware surge: New tablet products from the likes of Apple are expected, while augmented and virtual reality headsets and gaming consoles are also expected to boost gaming revenues this year with subscription services in gaming predicted to grow by 12% as well.
New bundles/Simplifying payment process: Content providers are set to promote ‘service bundles’ to attract consumer interest, potentially offering discounted rates on various services while simplifying payment processes.
Streaming upsurge: Consumers are projected to spend $14 billion on audio streaming services (up 6% from 2023) and $48 billion on video streaming (up 4%) in 2024.
Devices and services integration: Services will become an integral part of product purchases, with an estimated 25% of all consumer spending on tech going towards software and subscription services in 2024.
AI influence: Over 230 million smartphones and PCs shipping to the U.S. this year are expected to leverage generative AI through apps, browsers, and on-device software. AI algorithms are also being deployed in various applications such as vehicle safety systems, fitness tracking apps, and picture quality improvements on TVs.
Gary Shapiro, president and CEO of the CTA, expressed excitement about the upcoming innovation to be showcased at CES 2024 and emphasises the importance of pro-innovation policies, investment, immigration reform, and trade partnerships for driving innovation that benefits everyone.
“By embracing pro-innovation regulatory policies, encouraging investment, reforming immigration to embrace global talent, and enhancing trade partnerships that strengthen innovation, we can drive innovation benefiting all people,” he said.
