Consumer Technology Association: IoT Will Drive Consumer Tech Industry to $287 Billion in Revenues
LAS VEGAS — The ever-expanding adoption and continued growth of innovations comprising the Internet of Things will help lead the U.S. consumer technology industry to a record-setting $287 billion in retail revenues ($224 billion wholesale) in 2016, according to the Consumer Technology Association, formerly the Consumer Electronics Association.
CTA unveiled the latest version of its semi-annual industry report, U.S. Consumer Technology Sales and Forecasts, on the eve of CES 2016, the world’s gathering place for all who thrive on the business of consumer technology, running Jan. 6-9 in Las Vegas, NV.
Well-established technologies including smartphones, televisions and laptops will continue to drive U.S. retail revenues and lead to one percent industry growth in 2016. While these categories — together with tablets and desktops — account for 51 percent of the consumer tech industry’s revenue, the catalysts for industry growth are newer innovations such as wearables, virtual reality and drones.
“2016 will be another great year for consumers. As more products become connected, we’ll be able to manage our lives in ways that weren’t possible even just a few years ago,” said Gary Shapiro, president and CEO, Consumer Technology Association. “The exponential growth of the IoT and the lightning-fast speed of innovation are key reasons we’ll see such strong growth across so many tech categories. Highly sophisticated technology is becoming more affordable and accessible — improving our safety, productivity and entertainment.”
While CTA forecasts overall industry growth in 2016, the strong household penetration of mature categories, such as tablets, televisions, PCs and laptops, and continued industry innovation are declining or slowing growth and placing pressure on margins for some manufacturers and retailers. For example, despite a projected 65 percent increase in revenue for Ultra High-Definition TVs in 2016, CTA expects revenue for the overall TV market to not increase this year.
“Aggressive competition, longer product replacement cycles and disruptive innovation replacing legacy products create financial challenges for segments of our industry,” noted Shapiro. “However, we believe newer categories, continuing innovation and improving economic conditions provide additional cause for industry optimism.”
CTA’s consensus forecast reflects U.S. factory sales to dealers and covers more than 300 tech products. The semi-annual report serves as a benchmark for the consumer technology industry, charting the size and growth of underlying categories.
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