Consumer Electronics
Tech Industry Revenues to Reach $351 Billion This Year
Published:
Last Updated:
Americans love their tech toys. To prove it, they are expected to spend $351 billion in 2018 on items like smart speakers, virtual reality (VR) headsets, smartphones and other high-tech devices.
2018 retail spending on tech will rise 3.9% year over year, including the addition of a new category of product: music and video streaming services, valued at $19.5 billion, up 35% year over year. Excluding these services, 2018 retail spending on tech will rise 2.2%.
The data were reported on Sunday at the Consumer Electronics Show (CES) by the Consumer Technology Association (CTA), a business group composed of manufacturers and distributors of consumer electronics products and service providers. The 2018 forecast reflects U.S. factory-to-dealer sales of more than 300 consumer tech products.
CTA President and CEO Gary Shapiro said:
Technology is improving our lives in more ways than ever – and consumer enthusiasm is growing just as quickly as companies can bring their innovations to market. Our forecast incorporates several key economic factors including a strong stock market, continued job growth and stable rules for international trade to forecast these record-setting sales for breakthrough technologies and longtime market leaders alike.
Among emerging technologies, CTA forecasts unit sales to rise to 715 million units, up 6.6% year over year. Here’s the breakdown by device type:
Smart speakers. Unit sales rose 279% in 2017 and CTA expects a 60% increase this year to 43.6 million units and $3.8 billion in revenues (up 93% from 2017).
Smart home. This includes gear like smart thermostats, Wi-Fi cameras and door locks. Sales are forecast to rise 41% to 40.8 million units with $4.5 billion in revenue (up 34%).
Virtual reality. VR headsets and eyewear unit shipments are expected to rise 25% year over year to 4.9 million units and to generate $1.2 billion in revenue (up 18%).
Drones. Total drone sales are forecast at 3.7 million units (up 20%) with revenues reaching $1.2 billion (up 18%).
Wearables. Fitness trackers and smartwatches are going to be joined this year by smart basketballs and baseball bats. Sales are forecast at 49.3 million units (up 4%) with revenues of $6.4 billion (up 1%).
Here are CTA’s projections for sales in mature technology categories:
Smartphones. Volume is forecast to rise to 189 million units (up 2%) with revenues at $62.9 billion (up 3%).
Laptops. Sales of an estimated 50.1 million units are forecast to generate $28.4 billion in sales.
Televisions. Sales of 44.2 million units (up 2%) are expected to generate $22.1 billion in sales. CTA also forecast that 4K UHD TVs will make up half of all displays sold this year.
24/7 Wall St.Automotive electronics. From driver-assist features to entertainment systems, automotive electronics are set to contribute $15.9 billion in sales this year.
Tablets. Tablet and two-in-one sales are forecast to decline this year to 45.6 million units (down 12%) with revenue of $12.5 billion (down 13%).
Overall, mature technology sales from these top five categories will contribute just over half (51%) of all retail sales in 2018.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
