Future Predictions for U.S. Consumer Technology Revenue in 2026

Overview of Consumer Technology Growth in the US

The Consumer Technology Association (CTA) has recently released its forecast for the U.S. consumer technology sector, revealing a promising outlook despite the challenges posed by tariff pressures and economic uncertainties. With revenue projections set to hit $565 billion by the year 2026, this growth signifies a resilient market that continues to adapt and innovate even in the face of adversity.

Current Economic Landscape

The backdrop of these forecasts includes ongoing economic pressures, which have created a complex landscape for businesses. Consumers are increasingly investing in technology solutions that enhance their productivity and connectivity. According to Gary Shapiro, President and CEO of the CTA, “Even with rising tariffs and overall economic pressures, Americans are still investing in technologies that improve productivity, connectivity, and quality of life.” However, the effects of economic uncertainty are becoming more pronounced as companies navigate inventory from previous tariff prices and face more challenging financial decisions as they look towards 2026.

Growth Projections and Sector Analysis

The anticipated growth of 3.7% year-over-year reflects a stable overall market, but the burden of rising costs is not evenly distributed across the sector. Small businesses, in particular, may find themselves under pressure from margins and supply chain disruptions. The forecast indicates that while hardware revenue is expected to grow by 3.4%, expenditures on software and services are projected to rise by 4.2%, totaling nearly $194 billion. Notably, unit shipments are anticipated to see a modest increase of just 0.7% in 2026.

Shifting consumer priorities are leading to a greater emphasis on software-driven value, with increased interest in subscription services and flexible financing options. This marks a distinct transition towards a market focused on premium features and experiences powered by artificial intelligence.

Key Trends Shaping the Future

During the CES 2026 event, the CTA highlighted three major trends driving the evolution of the consumer technology industry:
1. Intelligent Transformation: Artificial intelligence is becoming a core component of devices, platforms, and services, enabling smarter systems and more personalized consumer experiences.
2. Longevity Technologies: Digital health advancements, telehealth capabilities, and wellness tools are ramping up, catering to consumers seeking technologies promoting longer, healthier lives.
3. Engineering for Tomorrow: Ongoing investments in electrification, mobility solutions, energy management, and infrastructure modernization are laying the groundwork for innovative breakthroughs in the future.

Despite the mounting economic pressure from tariffs and market fluctuations, the CTA's forecasts demonstrate the industry's ability to pivot and prioritize software, services, and cutting-edge innovation as the key drivers of growth for 2026.

If you missed today’s presentation, don’t worry! You can catch the live stream of the CES 2026 Trends to Watch at the Research Summit or access the on-demand recap at CES.tech.

Conclusion

The U.S. consumer technology sector stands at a pivotal moment. With the forecasted revenue by 2026 pointing towards significant growth amidst adversity, it reflects a testament to the industry’s adaptability and commitment to innovation. As we continue to witness advancements driven by AI and consumer demand for health-focused technologies, the trajectory for this vibrant sector seems promising, illustrating both resilience and opportunity in the face of challenges.