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US Consumer Technology Revenue Forecast

As the Consumer Technology Association (CTA) releases its latest projections, the US consumer technology industry is poised for strong growth despite significant economic challenges. Forecasted to reach $565 billion in revenue by 2026, this figure represents a 3.7% increase from the previous year, showcasing the industry's resilience in adapting to turbulent economic conditions.

Economic Landscape Impacting Growth

The industry faces a myriad of pressures, including increased tariffs and economic uncertainty, which are reshaping the business environment. Gary Shapiro, the President and CEO of CTA, noted, "Despite these challenges, Americans continue to invest in technologies that enhance productivity, connectivity, and quality of life. However, the visible impacts of economic uncertainty are growing, as companies manage their inventories and face cost-related decisions for the upcoming year."

The US Consumer Technology Industry Forecast was unveiled during the CES® 2026, where industry leaders gathered to assess upcoming trends and innovations. This event serves as a critical platform for discussing the future of technology amid evolving market dynamics.

Key Findings of the Forecast

While overall growth remains stable, the burden of rising costs is unevenly distributed across the sector, with smaller businesses more likely to experience margin pressures and supply chain disruptions. Key segments are expected to grow, with hardware sales projected to increase by 3.4% and consumer spending on software and services anticipated to rise by 4.2%, reaching nearly $194 billion. However, unit growth is expected to be only 0.7%, indicating a shift towards software-driven solutions and subscription services, marking a trend toward premium features and AI-enhanced experiences.

Trends to Watch in 2026

During CES 2026, three significant trends were highlighted that are likely to shape the next phase of the consumer technology landscape:

1. Intelligent Transformation - AI is emerging as the backbone of devices, platforms, and services, facilitating smarter systems and personalized customer experiences.
2. Longevity Technologies - Advances in digital health, remote care, and wellness tools are accelerating as consumers increasingly seek technologies that support longer, healthier lives.
3. Engineering Tomorrow - Ongoing investments in electrification, mobility, energy management, and infrastructure modernization are laying the groundwork for future innovations.

Even amid heightened economic pressure compared to the previous year, the CTA forecast illustrates an adaptable sector shifting towards software, services, and premium innovations as the primary drivers of growth for 2026. The readiness to pivot in response to global economic challenges showcases the industry's commitment to innovation and progress.

Conclusion

Consumers are expected to place a high value on enhanced software-driven benefits, favoring subscription models and flexible financing options. As the landscape continues to evolve, the insights provided during CES 2026 serve crucial for stakeholders looking to navigate the upcoming changes in the marketplace.

For those who missed the live presentation, a stream of the CES 2026 Trends to Watch can be accessed, offering valuable perspectives on what's next for consumer technology.

About CTA

As North America's largest technology trade association, CTA represents over 18 million technology-related jobs in the United States, encompassing a wide range of innovators from startups to global brands. The CES event is recognized as a hallmark of technological advancement, bringing together the foremost innovators and companies to convene, collaborate, and unveil their latest offerings.

For more information, visit CTA.tech and stay engaged with CES through various social media channels.