Looking ahead to CES 2024, the Consumer Technology Association predicts that Retail revenues for the US consumer technology industry will grow 2.8% in 2024, reaching $512 billion (an increase of $14 billion compared to 2023).
“Despite inflation in most sectors of the US economy, it is notable that technology products such as TVs, smartphones and gaming hardware are being purchased at lower prices by consumers” said Richard Kowalski, Sr. Director of Business Intelligence at CTA. “
Technology by nature is deflationary, as innovation leads industries to find newer and more efficient ways to compete. Looking ahead to 2024, I expect developments in artificial intelligence to accelerate growth for consumer and enterprise technology companies, making them more efficient and finding more ways to meet consumer needs.”
The Consumer Technology Association also identifies some trends to monitor during the year that has just begun.
2024 will be a spectator of the gaming hardware boom. Product renewals in tablets, headsets for augmented and virtual reality and gaming (regeneration of the console of a major brand in the two-year period 2024/2025) will boost gaming revenues in 2024. Gaming will also be amplified by a 12% growth in subscription services (growing to $3.5 billion in 2024). Generative AI is expected to improve the gaming experience while also helping developers bring games to market faster.
Megabundles: Content providers will increase the promotion of “service packages” to attract more consumer interest. Megabundles have the potential to offer consumers discounted rates on their favorite services while also simplifying the payment process.
Increased Streaming: Consumers will spend $14 billion (up 6% from 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
Services: services continue to be an essential part of the purchase of products, as reflected in the data from the last year. The CTA estimates that 25% of all consumer spending on technology in 2019 was accounted for by the purchase of software and subscription services. In just 5 years, to 2024, the CTA projects that the same services will account for nearly a third of all consumer spending.
The future of AI: More than 230 million smartphones and PCs shipped in the United States this year will harness the powers of generative AI across mobile apps, browsers and software on devices. AI is being used in mobility safety systems, fitness tracking apps on smartwatches, and image quality improvements on televisions.
“I'm excited by the breadth of innovation I'm seeing from companies large and small ahead of CES 2024” said Gary Shapiro, president and CEO of the CTA. “By embracing pro-innovation regulatory policies, encouraging investment, reforming immigration to embrace global talent, and enhancing business partnerships that strengthen innovation, we can drive innovation to the benefit of all.”
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