Revenue growth in US consumer tech driven by emerging technology and IoT adoption
The Consumer Technology Association’s (CTA) semi-annual forecast revealed that retail revenues in the US consumer technology industry will total $286.6 billion ($224 billion wholesale) in 2016 on account of increase in adoption of the Internet of Things (IoT) and fervour for emerging technology. The report holds that sales of technology products such as wearables, smart home devices and drones will see a 1.3% year-on-year increase.
Gary Shapiro, president and CEO, CTA, said: “We’re in the midst of a critical transition period, as more IoT products offer the anytime/anywhere access and seamless experiences that today’s consumers want and need. This is a pivotal point in consumer technology history, as emerging tech categories – virtual reality, voice-controlled digital assistants, drones – push the entire industry forward. And the value of these innovations goes far beyond entertainment – today’s technology is changing our lives for the better.”
The five largest segments in the technology industry – smartphones, tablets, LCD televisions, laptops and desktop computers – are anticipated to comprise 51% or $114 billion of the sector’s revenue in 2016, with smartphones and TVs bringing in most of that growth during the year. However, the tide is set to change in 2017, with the mentioned segments expected to comprise a little less than 50% of industry’s revenue. This development will occur for the first time in many years.
Shawn DuBravac, Ph.D., chief economist, CTA, said, “Technology is constantly and continuously reinventing itself, often cannibalizing its own growth before anything else does. The swath of emerging categories hitting the market in 2016 and the exponential growth of IoT are indelibly shaping the way we live our lives. How we use the internet, and the new products coming to market today, are changing who we are becoming.”
Interested in hearing industry leaders discuss subjects like this and sharing their IoT use-cases? Attend the IoT Tech Expo World Series events with upcoming shows in Silicon Valley, London and Amsterdam to learn more.
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