• by Chuck Martin , January 6, 2019

The U.S. consumer technology industry will reach a record $398 billion in retail revenue in 2019, a growth of 4% from last year, according to the Consumer Technology Association (CTA) report at CES.

The growth is being driven by artificial intelligence and fast connectivity, key ingredients for smartphones, smart home devices and smart speakers, according to the CTA.

Presented in advance of CES 2019, the semi-annual U.S. Consumer Technology Sales and Forecast reflects factory sales to dealers for more than 300 consumer technology products along with related software and services.

“The consumer tech sector is fast approaching another milestone – almost $400 billion in annual revenues – as more consumers embrace the efficiency, safety, entertainment and anytime/anywhere communication that technology brings to our everyday lives,” said Gary Shapiro, president and CEO, CTA. “Our latest research shows innovations in AI and faster connectivity are among the key drivers for the industry’s record growth.”

Projected growth is attributed to a range of products:

• Smart speakers – Voice controlled smart speakers like Amazon Echo and Google Home are projected to sell 37 million devices, a 5% annual increase and account for $4.2 billion in revenue
• Smart home – Sales of home monitoring and security devices, such as smart locks and doorbells, smart home systems, smart switches, smart thermostats, Wi-Fi cameras and dimmers and outlets are projected to reach 29 million units in 2019, a 23% annual increase, and reach $4.6 billion in revenue, a 17% increase
• Smartwatches – Fitness tech companies are evolving from basic trackers to sophisticated smartwatches, driving shipments to 21 million units, a 25% annual increase, with revenue of $4.7 billion, a 19% increase
• Wireless earbuds – The hearables category is growing, with wireless earbuds like Apple AirPods and Bose SoundSport Free projected to sell nearly 16 million devices, a 44% annual increase, and approach $2 billion in revenue, a 46% increase
• Drones – Total sales are projected to reach 3 million units, a 4% annual increase, and reach $1 billion in revenue, a 4% growth

“The future is bright for many tech products consumers already know and love, as stalwart revenue drivers including smartphones, laptops and televisions continue to innovate,” said Steve Koenig, vice president of market research, CTA. “2019 will mark the introduction of 5G-enabled devices and smartphones and next-gen screen technology such as 8K UHD televisions to the market. And constantly-evolving content from streaming services that enhances the experience across ‘the three screens’ – TVs, smartphones, laptops – will help push consumer spending in tech to new levels.”

The top revenue drivers in the industry include smartphones ($80 billion), laptops ($28.4 billion), TVs ($22.6 billion) and in-vehicle technology ($17 billion). Consumer spending on streaming music and video is projected to reach $26 billion, a 24% increase from last year.