US retail revenues from consumer technology will show a 6 percent jump this year to a record USD 377 billion, according to the Consumer Technology Association (CTA), pushed by smart speakers, smart home technologies and smartphones, in turn spurred by advanced in artificial intelligence (AI), voice-recognition technology and fast connectivity. Sales are expected to pass USD 1 billion for the first time for whole home Wi-Fi systems, wireless earbuds and augmented/virtual reality headsets alone. Streaming services will also put on a strong show, as will automotive technologies.
For Smart Speakers, sales are seen rising 44 percent year-on-year to 39.2 million units and leaping 64 percent to USD 3.2 billion in revenue. This category includes voice-controlled smart speakers such as Amazon Echo, Google Home and Apple HomePod, all on the market since the past three years only.
For the Smart Home, unit sales will surge 43 percent to 41.2 million and revenues by 36 percent to USD 4.6 billion. This segment consists of devices such as smart thermostats, smart smoke and carbon monoxide detectors, IP/Wi-Fi cameras, smart locks and doorbells, smart home systems, and smart switches, dimmers and outlets.
Whole Home Wi-Fi Solutions is a category made up of mesh networks, devices such as the eero Home Wi-Fi system, Google Wi-Fi or Netgear Orbi. These are forecast to cross the USD 1 billion revenue milestone for the first time this year, an increase of 103 percent, with unit sales soaring 115 percent to 4.3 million.
Drones sales are expected to hit 3.4 million units, up 8 percent from the year before, while revenues will lift 4 percent to just over USD 1 billion.
Wearables and smartwatches get boost from health and fitness market
Wearables, pushed by the total health and fitness market, will see unit sales rise 9 percent to 46.1 million and revenues advance 10 percent to USD 6.4 million. This category includes fitness activity trackers, other health and fitness devices, smartwatches, personal sound amplification products and sports tech (such as a smart baseball bats or basketballs).
CTA noted that some companies will be shifting their focus from fitness trackers to smartwatches, with this sub-category seen shipping 26 percent more units this year to 15.3 million. Revenues are expected to climb 19 percent to USD 3.7 billion.
Demand continues for smartphones, laptops and PCs, but slows for TVs
Revenues from smartphones are forecast to reach USD 78 billion from an upwards adjusted figure for 2017 of 69 billion, an increase of 13 percent. Unit shipments are expected to grow 1 percent to 169.4 million this year. The introduction in 2019 of the first 5G enabled smartphones will push sales that year to 2.1 million units and over the USD 1 billion line, with triple digit increases expected through 2021.
For laptops/notebooks/PCs, convertible models and cloud-based laptops will remain a high-growth area. Unit sales for laptops are projected to rise 3 percent to 50.1 million while revenues will remain relatively unchanged at USD 28.4 billion.
The last of the top three screens is the televison. Consumer demand here slowed after putting up a strong performance last year. Total unit sales of digital displays are now expected down 6 percent to 40.4 million units. Higher average wholesale prices will hold total revenue at USD 21 billion, on par with 2017.
But there will be future category growth, driven by Next Gen screen technology. For 4K Ultra High-Definition (4K UHD) TVs, unit sales are forecast up 11 percent to 18.6 million units, with revenues seen 7 percent higher to USD 14.3 billion this year. OLED unit sales are expected to rise 45 percent to 772,000 while revenues are seen jumping 42 percent to USD 1.4 billion. For 2019, OLED display revenue will rise 50 percent to cross the USD 2 billion mark.
Automotive and streaming will change how people use content, technologies
Factory installed automotive technology is expected to contribute USD 15.7 billion to revenues in 2018, up 6 percent.
Streaming services will also show a strong rise, with revenues from subscription music and video streaming services seen lifting 38 percent to USD 19.7 billion this year. Spending on video streaming content (such as Netflix, Hulu and Sling TV) will reach USD 13.4 billion in revenue, and on-demand audio content (Spotify, Pandora or Apple Music) is projected to bring in USD 6.3 billion.