US consumer technology industry retail revenues will slip by a little more than 2% this year compared to last, but remain elevated over pre-pandemic levels, according to a recent forecast from the Consumer Technology Association (CTA). The forecast calls for $485 billion in sales this year, down from an estimated $497 last year.
This year’s predicted figure would still be a lift over pre-pandemic days, though, at about $50 billion higher than 2019’s $435 billion in sales. The pandemic likely impacted sales, as retail revenues rose to $467 billion in 2020 and peaked at an impressive $512 billion in 2021 before starting their slow descent. This year’s dip is attributed to a looming recession and inflation that will act as headwinds to consumer spending.
Inflation has been shown to have an impact on subscription services, and many adults report having canceled media services. Even so, the CTA projects consumer spending on technology services (such as gaming, video, audio, and apps) to grow for the 5th consecutive year, generating $151 billion in spending, or almost one-third (~31%) of industry revenues.
Other industry sectors predicted to enjoy an increase in revenues this year include factory-installed automotive technology (+4% to $15.5 billion) and health and fitness services, such as fitness subscription services and digital therapeutics (+9% to $928 million).
By comparison, expectations are lower for sales of consumer electronics including laptops, LCD TVs, tablets, smartphones, and gaming consoles. However, portable gaming console sales are forecast to jump by 41% year-over-year to $1.5 billion as consumers spend less time at home.
For more, check out CTA’s release here.