Press release

Consumer Tech U.S. Sales to Reach Record $422 Billion in 2020; Streaming Services Spending Soars, Says CTA

Sponsored by Businesswire

Skyrocketing popularity of streaming services and wireless earbuds along
with 5G connectivity and artificial intelligence (AI)-enabled devices
will drive revenue growth for the U.S. consumer tech industry to a
record $422 billion in retail revenues in 2020 – nearly 4% growth over
last year, according to a new Consumer Technology Association (CTA)®

Unveiled today at CES® 2020, CTA’s twice yearly U.S. Consumer
Technology Sales and Forecasts
report reflects U.S. factory
sales-to-dealers for 300+ consumer tech products and related software
and services. New for 2020, CTA’s forecast also provides an overall
number for digital health devices including smartwatches, fitness
trackers and connected health monitoring devices such as blood pressure
monitors and smart scales. The digital health category is projected to
sell 64 million devices and total $10 billion dollars this year.

“More and more consumers are embracing the faster connectivity, advanced
intelligence and seemingly infinite content that technology offers today
– pushing consumer technology industry revenues toward another
record-setting year in 2020,” said Gary Shapiro, president and CEO, CTA.
“We’ll see advancements in 5G connectivity and AI play out across the
CES 2020 show floor this week – from digital health to self-driving
vehicles and smart homes – vital technologies that are changing our
lives for the better.”

High-Growth Emerging Categories

Software and Streaming Services – Music, Video and Video Gaming

Spending on software and streaming services (including music, video and
video gaming) is projected to reach a new high of $81.2 billion in 2020
(11% growth over last year).

  • Video: Award-winning original content and more big entrants to
    the video streaming wars will push consumer spending to $24.1 billion
    in 2020, up 29%.
  • Music: On-demand music services including Apple Music, Pandora
    and Spotify will total $9 billion in revenue, up 15%, with room to
    grow as more and more consumers adopt smart speakers and wireless
  • Video Gaming: Growing in-game spending and subscribers will
    push the video game software and services category to $38.3 billion in
    revenue this year, up 5%.

Wireless Earbuds: Devices such as Apple AirPods and Samsung
Galaxy Buds will help propel the category in 2020 to nearly 67 million
units in 2020 (up 35%), earning $8.2 billion in revenue (up 31%), after
a breakaway year of sales in 2019.

Smart Home: Safety is a key driving force in the smart home
category. CTA expects smart home sales – including smart doorbells and
locks, Wi-Fi cameras, smart thermostats, smart smoke and carbon monoxide
detectors, and smart home security kits – to reach 35.2 million units
(15% growth) and $4.3 billion (4% increase).

Smart Speakers: Consumers are upgrading their smart speakers,
such as Google Home, Amazon Echo or Apple HomePod, to voice-enabled
devices with a display screen. Unit sales are projected to reach 39
million units sold (up 5% over last year) and $4.2 billion in revenue
(14% increase) in 2020.

“The last decade was about the Internet of Things – but now, we kick off
a new decade defined by the Intelligence of Things,” says Steve Koenig,
vice president of market research, CTA. “Connected intelligence defines
today’s device ecosystem from consumer favorites such as smartphones and
TVs to an expanding universe of smart home solutions making intelligent
living spaces a reality. Over the next 10 years, the dynamic of
connected intelligence will grow apace with advancing 5G networks and
innovative applications of AI to propel the consumer tech industry
forward — and with it consumer experiences, safety, health and more.”

Top Revenue Categories

Smartphones: After a dip in 2019, smartphones will recoup losses
with an uptick in 5G-enabled smartphone shipments this year. Smartphones
are projected to reach 166 million units (2% increase) and earn $79
billion dollars in revenue (up 3%) in 2020. 5G smartphones will hit
their stride, with 20.3 million units sold (a 12x growth spurt over last
year’s initial introduction) and generate $15.3 billion in revenue (10x
percent jump), with the build out of U.S. 5G capabilities.

Laptops: Maintaining their lead as the most popular personal
computing device, nearly 53 million laptops will ship in 2020, up 1%
over last year, and they will earn $33.3 billion in revenue (up 1%).

Televisions: TVs continue their reign as the flagship technology
in many U.S. homes. Overall, TV manufacturers will ship 40.8 million
units in 2020 (2% increase) driving $23.4 billion in revenue (flat with
2019), as new TV features drive interest for consumers.

Replacement upgrades will be driven by bigger screens and TVs featuring
4K Ultra High Definition (4K UHD) resolution and high dynamic range
(HDR). In 2020, 4K UHD sets will account for 25 million units (12%
increase) and $17.6 billion in revenue (2% increase). And 8K UHD TVs
will cross the one billion-dollar milestone ($1.6 billion) in revenue,
selling 504,000 units.

In-Vehicle Tech: Factory-installed in-vehicle technology will
grow by 6% to $18.5 billion in revenue in 2020 as autonomous safety and
entertainment features in new car models pave the way toward more
revenue growth. More manufacturers are including advanced
driver-assistance systems (ADAS) features such as automatic emergency
braking systems, active lane keeping and more.

CTA publishes its flagship U.S. Consumer Technology Sales and
twice a year, in January and July, reporting factory sales
to U.S. dealers. It was designed and formulated by CTA, the most
comprehensive source of sales data, forecasts, consumer research and
trends for the consumer technology industry. For more information, visit

Multi-year projections cannot account for unpredictable factors such as
changes in trade laws, interest rates and federal policy. Any escalation
in the trade dispute with China and expansion of tariffs would likely
present significant headwinds to CTA’s forecast.

Consumer Technology Association:

As North America’s largest technology trade association, CTA® is the
tech sector. Our members are the world’s leading innovators – from
startups to global brands – helping support more than 18 million
American jobs. CTA owns and produces CES® – the largest, most
influential tech event on the planet. Find us at
Follow us @CTAtech.


  • CES

    January 7-10, 2020 – Las Vegas, NV