New research from the Consumer Technology Association (CTA) projects U.S. technology retail revenues to reach $488 billion in 2023, a $3 billion increase from CTA’s January forecast. CTA’s monthly inflation tracker shows 76% of consumers are spending the same or more on technology products and services than a year ago. However, CTA anticipates continued pressure from inflation and predictions of a recession will decrease consumer spending in the second half of 2023.
This trend highlights consumers’ willingness to keep spending and the industry’s role as a deflationary force amid ongoing economic uncertainty. Tech advances help improve productivity and combat inflation. Productivity gains come from greater efficiencies that rely on new technologies and better deployment of technology.
“U.S. consumers are leaning into software, services and streaming, and are enjoying the incredible value of affordable smart speakers, TVs and smart phones,” said Gary Shapiro, president and CEO of CTA. “As former Department of the Treasury Counselor Steven Rattner noted recently, new technologies can serve as a deflationary force for the economy. Our industry’s dynamic nature improves the customer experience and propels industries to discover innovative and more efficient methods of driving commerce.”
View CTA’s U.S. Consumer Technology Industry Mid-Year Forecast: Executive Summary and Full Report, plus sign up for CTA Research Insights.
Consumer technology industry revenues will remain roughly $63 billion above the pre-pandemic high of $425 billion in 2019.
Noteworthy Trends:
- Overall industry average wholesale prices will decline 1% in 2023 at a time when inflation remains elevated and other industries continue to see rising prices. LCD TVs (-5%), laptops (-2%), smart speakers (-5%), smartwatches (-4%), wireless earbuds (-1%) and home game consoles (-7%) are projected to decrease in price this year.
- Cloud-based game streaming and multiplayer access will see 10% revenue growth by the close of 2023. Fitness subscription services will also grow 25% over the same period.
- Foldable smartphones will gain significant popularity, with 12.1% growth projected from 2023 through the end of 2024.
- Despite slower than average TV sales, OLED TV revenue is estimated to grow 7% to $3.4 billion by the end of 2023.
- Portable gaming console revenue will jump 50% this year, to $1.6 billion.
Public policy has a pivotal role in the technology industry’s economic trajectory, and CTA advocates for policies that support American innovation and protect consumer interests. Shapiro added, “To bolster the success of U.S. businesses, we should forge new trade agreements with America’s friends and allies and stop arbitrarily punishing companies for growth and success.”
Methodology
CTA employs a consensus methodology to compile its forecasts, gathering estimates of expected annual total industry volumes from manufacturers, retailers, industry analysts, publications and other sources. These estimates are then averaged and adjusted based on additional qualitative inputs, year-to-date trends, CTA consumer research and historical growth rates. Multi-year projections cannot account for unpredictable factors such as pandemics or changes in trade laws, interest rates and federal policy.
Visit CTA.tech for more information.
See also: Explore “Technology’s Golden Age” With The CTA’s New Film Series
