U.S. consumer spending on technology products and services is projected to grow 2.8 percent in 2024, to $512 billion. That $14 billion uptick over last year is predicted in the Consumer Technology Association’s latest forecast, which was released at the kickoff of the Consumer Electronic Show 2024 this week in Las Vegas.
In addition to that increase, shoppers will also get more bang for their bucks, CTA officials say,
“Despite inflation in most sectors of the U.S. economy, it’s noteworthy that consumer tech products like TVs, smartphones and gaming hardware are being bought at lower prices by consumers,” said Richard Kowalski, Senior Director of Business Intelligence at CTA. “Technology by nature is deflationary as innovation leads industries to find newer, more efficient ways to compete. Looking ahead to 2024, I expect developments in artificial intelligence will accelerate growth for consumer and enterprise technology companies as they become more efficient and find more ways to meet consumer needs.”
Among the trends the CTA study says are worth watching as the year unfolds:
- Megabundles will be big: Such bundles have the potential to offer consumers discounted rates on their favorite services while also simplifying their payment process.
- Streaming will continue to rise: Consumers will spend $14 billion (up 6% over 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
- Gaming hardware will boom: Product refreshes in tablets, augmented and virtual reality headsets and gaming (Major brand console refresh in 2024/2025) will boost gaming revenues in 2024. Gaming will also be amplified by 12% growth in subscription services (growing to $3.5 billion in 2024).
- AI hype is for real: Over 230 million smartphones and PCs shipping to the U.S. this year will tap the powers of generative AI through mobile apps, browsers and on-device software. AI is being used for such things as mobility safety systems, fitness tracking apps on smartwatches and picture-quality improvements on TVs.
Click here for more from the survey.
