CTA Projects $292B in U.S. 2017 Sales

Increasing consumer enthusiasm for the Internet of Things (IoT) and adoption of emerging technology will drive the U.S. consumer technology industry to $292 billion in retail revenues ($228 billion wholesale) in 2017, according to new research from the Consumer Technology Association.

The latest edition of CTA’s semi-annual industry report, U.S. Consumer Technology Sales and Forecasts, unveiled in advance of CES, says sales of emerging tech products such as smart home devices, wearables and 4K Ultra HD televisions will help produce 1.5 percent year-over-year growth in industry revenues.

"Our forecast reinforces our belief that connectivity is going to be one of the driving trends of our time," said Gary Shapiro, president and CEO, CTA. "More and more consumers are discovering the remarkable benefits connected products deliver, providing anytime and anywhere access to information, entertainment and each other. Consumers recognize that connected innovations are changing our lives for the better, offering us more control and personalization while helping us lead safer, healthier and happier lives.

Among categories tracked by CTA's forecasts, U.S. sales of connected devices are projected to reach 600 million units in 2017, a record high total and five percent YOY increase from 2016. In addition to devices, automotive is another hotbed of innovation. Factory-installed technologies, from entertainment systems to driver-assist features, make up an estimated 50 percent of the collective value in new vehicles, up from about 25 percent just 10 years ago. CTA estimates factory-installed automotive technologies will contribute nearly $17 billion to industry sales in 2017.

Taking a closer look at maturing technology categories, five largest revenue drivers will contribute almost half of total industry revenue (48 percent) in 2017. These are smartphones, television, tablets, laptop and desktop. Despite revenue declines across some of the those largest categories, unit shipment increases demonstrate continued resilience in them.