The Consumer Technology Association (CTA)® has projected that despite a third consecutive year of declines in U.S. hardware revenues, overall retail revenues for the U.S. consumer technology industry will grow by 1% in 2024 to $505 billion, followed by a 4.4% growth in 2025 to $527 billion. This forecast is detailed in CTA’s U.S. Consumer Technology One-Year Industry Forecast (July 2024). The industry is expected to see support from services sales in 2024, with a potential rebound for hardware sales anticipated in 2025. Over 750 million connected consumer tech devices are expected to ship to the U.S. market this year.

“Technology is deflationary by nature,” said Rick Kowalski, Sr. Director of Business Intelligence at CTA. “Value pricing of tech products like TVs, wireless earbuds and gaming hardware is impossible to ignore. Technological innovation helps industries explore more efficient strategies, fostering cost reduction and deflation. Looking ahead, we expect progress in artificial intelligence to spur growth in consumer and enterprise technology sectors, increasing efficiency and meeting more consumer needs.”

In contrast to an overall U.S. inflation rate of +3.4% in 2023, several consumer technology products saw price decreases during the same period:

- 4K Ultra HDTV: -12%

- Smart doorbells: -6%

- Wireless Earbuds: -5%

- Home Gaming Consoles: -5%

Consumer spending on software and services now constitutes one-third (33%) of total consumer technology expenditures. Among twelve major hardware categories profiled, six are expected to ship more units than they did in 2023, including computing (+3.6%), digital health devices (+1.2%), and digital cameras (+6.2%).

Noteworthy trends include:

- The release of dozens of AI-enabled laptops in 2024, with shipments projected at 53 million units, marking a 4% increase over 2023.

- Increased spending on live TV streaming services driven by popular sporting events and greater availability of sports content across video platforms; this sector is expected to grow by 11% this year to nearly $11.8 billion.

- A rise in cross-platform games, indie titles, and subscription gaming services demand will push gaming spending above $50 billion, representing a 3% increase over last year.

Since its inception in 1967, CTA has updated its forecast biannually for over 125 consumer technology products and services categories. This forecast serves as an industry benchmark utilized by manufacturers for product development plans; financial analysts for market sizing; media for coverage context; government staff for policy guidance; and CTA itself for highlighting industry successes and challenges.

The Consumer Technology Association represents North America’s largest technology trade association comprising leading innovators from startups to global brands supporting over 18 million American jobs.

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