CTA, or the Consumer Technology Association, is the organisation behind the annual CES Consumer Electronics Show, held yearly during January in Las Vegas.
iTWire is at the event as a guest of AMD and Hisense, and attended the unveiling of the report in a special presentation to the media on 7 January, and recorded the entire event.
CTA's report says "excitement about emerging technologies and the resilience of historically leading categories will drive the US consumer technology industry to a record-breaking US$351 billion in retail revenues (US$266 billion wholesale) in 2018 – 3.9% higher than 2017."
Here's the full video, the article and plenty more detail continues below:
CTA added streaming services sales — which include internet-enabled services that deliver on-demand or linear video content (e.g., Netflix, Hulu and Sling TV) and on-demand audio content (e.g., Spotify, Pandora or Apple Music) — to "better capture the full expanse of the ever evolving and expanding consumer technology market. Excluding the addition of streaming services, total industry revenue would increase by 2.2% in 2018".
Gary Shapiro, president and chief executive, CTA, said: "Technology is improving our lives in more ways than ever – and consumer enthusiasm is growing just as quickly as companies can bring their innovations to market.
"Our forecast incorporates several key economic factors including a strong stock market, continued job growth and stable rules for international trade to forecast these record-setting sales for breakthrough technologies and longtime market leaders alike. And the driving themes of 2018, including voice computing, artificial intelligence and connectivity that make our lives better and more efficient, will be on display across the show floor this week at CES 2018."
CTA reminds us that it is the largest tech trade association in the US, and that its semi-annual report "serves as a benchmark for the US consumer technology industry, charting the size and growth of underlying product categories. The CTA consensus forecast reflects US factory sales-to-dealers for more than 300 consumer tech products".
Emerging technologies expand
Overall, US sales of connected devices are projected to reach 715 million units in 2018 – a 6.6% increase year-over-year. Specific products projected to contribute significantly to this growth include:
Smart speakers: Coming off of a tremendous 2017 holiday season, voice-controlled smart speakers, including Amazon Echo and Google Home, are going gangbusters. Unit sales increased 279% in 2017, and CTA projects 2018 unit sales will reach 43.6 million units (60% increase) and earn US$3.8 billion in revenue (93% growth). As voice recognition technology is integrated into more speakers at a variety of price points, smart speakers is a category to watch in 2018.
Smart home: The popularity of smart speakers will have a ripple effect on the smart home market, as consumers discover the benefits of voice-activated home automation. CTA expects sales in the category — including 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 — to reach 40.8 million units in 2018 (41% increase over 2017), earning US$4.5 billion (34% increase).
Virtual reality: Popularity among gamers and an increasingly competitive market continue to drive growth for VR/AR headsets and eyewear, with unit shipments projected to grow to 4.9 million units this year (25% increase) tallying US$1.2 billion in revenues (18% increase).
Drones: Total drone sales are expected to reach record highs of 3.7 million units in 2018 (20% increase) earning US$1.2 billion in revenue (17% increase). CTA's forecast also delineates US drone sales for units below and above 250 grams, the FAA's division for mandatory drone registration. Drones below 250 grams are expected to reach just over 2.2 million units this year, while drones above 250 grams will reach 1.5 million units shipped.
Wearables: The total health, fitness and sports tech market — including fitness activity trackers, other health and fitness devices, hearables, over-the-counter hearing devices, smartwatches and, for the first time, sports tech (such as a smart basketballs or baseball bats) — is expected to reach sales of 49.3 million units in 2018 (four% increase) and earn US$6.4 billion (one% increase).
Brian Markwalter, senior vice-president of research and standards at CTA, said: "Consumers are rapidly adopting new, emerging technology products – with voice-activated smart speakers as the stand-out of 2017 and 2018 - sparking growth in smart home devices, as voice interaction adds a new level of convenience and excitement to our lives.
"At the same time, core categories — such as smartphones, laptops and TVs — continue to surpass expectations. 2018 will prove to be a milestone year for TVs, especially as LCD 4K UHD TVs make up half of all TVs sold in 2018."
Maturing technologies continuing
The top five revenue categories will contribute just over half of total wholesale industry revenue (51%) in 2018.
Smartphones: Following the introduction of new flagship models from major manufacturers in 2017, smartphones will continue to anchor the industry and see slight growth in 2018. Unit volume will reach 189 million smartphones (two% increase) shipping in 2018, with revenues expected to reach US$62.9 billion (three% increase).
Laptops: In 2018, the commercial and consumer laptop market will sell 50.1 million units, up three% over last year, and earn US$28.4 billion in revenue. Convertible models remain a high-growth area within computing.
Televisions: Performing better than expected in 2017, unit sales of total digital displays in 2018 are projected to reach 44.2 million units (two% increase) and US$22.1 billion in revenue (two% increase). Future category growth will be driven by next-gen features.
4K Ultra High-Definition: For the first time, 4K UHD TVs will make up half of all total digital displays sold in 2018, with unit sales forecast to hit 22 million units (27% increase) generating US$15.9 billion in revenue (14% increase).
Automotive electronics: Factory-installed automotive technology, from driver-assist features to entertainment systems, is projected to contribute US$15.9 billion in revenue (5.9% increase) – the result of strong automotive sales, propelled by a rising tide of tech, from sensors and artificial intelligence to safety and infotainment systems.
Tablets: After tremendous adoption in recent years, some tablet sales have been cannibalised by convertible, 2-in-1 laptops as standalone tablet adoption has levelled off and replacement cycles have slowed. Tablet sales will decline in 2018. CTA expects sales of 45.6 million units (12% decrease) and revenues of US$12.5 billion (13% decrease).
More information on the report, including the slides seen in the video above, can be seen here.
Here is CTA's infographic – please turn phone horizontal to see full image:
The writer is attending CES 2018 as a guest of AMD and Hisense.