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U.S. Consumer Technology Revenue on the Rise: Predictions for 2026

In a landscape shaped by economic uncertainty, the Consumer Technology Association (CTA) has made a bold prediction for the U.S. consumer technology market. Despite pressures from tariffs and broader economic challenges, revenue is projected to reach an impressive $565 billion by the year 2026. This forecast reflects a year-over-year growth rate of 3.7%, showcasing the resilience of the industry.

The CTA recently unveiled these insights at the CES 2026 Trends to Watch event, held during the press days of the Consumer Electronics Show (CES) in Las Vegas. Here, industry leaders gathered to discuss innovations shaping the sector and outline strategies for the upcoming year.

The Economic Landscape and Its Impact

As economic pressures mount, businesses within the consumer technology sector face a multitude of challenges including fluctuating supply chains and shifting consumer spending habits. Gary Shapiro, President and CEO of CTA, stated, "Even as tariffs and wider economic pressures intensify, Americans continue to invest in technology that enhances productivity, connectivity, and quality of life." His comments underscore a strong commitment from consumers towards technology that offers tangible benefits,

However, the forecast indicates that while the overall growth trajectory is stable, the burden of rising costs is not evenly distributed throughout the industry. Smaller companies may find themselves more vulnerable to margin pressures or disruptions within their supply chains.

Sector Growth Patterns

According to the CTA’s forecast, hardware revenue is expected to see growth of 3.4%. Meanwhile, consumer spending on software and services is projected to climb significantly—by 4.2%—reaching nearly $194 billion. However, unit shipments are anticipated to grow only a modest 0.7% in 2026. This reflects a substantial shift in consumer priorities toward software-based value, as subscriptions and flexible financing options become increasingly appealing.

As a result, the emphasis is shifting toward premium features and AI-driven experiences.

Key Forces Shaping the Future

At CES 2026, CTA highlighted three pivotal forces shaping the next phase of the consumer technology industry:

1. Smart Transformation: AI is rapidly becoming a core component across devices, platforms, and services, creating smarter systems and more personalized consumer experiences.
2. Technologies for Longevity: Advances in digital health, remote care, and wellness tools are accelerating as consumers increasingly seek technologies that support longer, healthier lives.
3. Future Engineering: Continued investment in electrification, mobility, energy management, and infrastructure modernization is laying the groundwork for future innovations.

Despite the heightened economic pressures compared to previous years, CTA's forecast emphasizes an industry poised to adapt, placing premium software, services, and innovations as primary growth drivers for 2026.

Looking Ahead

For those who missed the live presentation, a recorded broadcast of the CES 2026 Trends to Watch session is available on CES.tech.

This forecast is built upon qualitative and quantitative insights from member companies of the CTA and industry participants, alongside analysis by the CTA research team.

About the Consumer Technology Association (CTA)

As North America's largest technology trade association, CTA represents the technology sector. Our members are among the foremost innovators globally—from startups to multinational brands—contributing to over 18 million jobs in the United States. CTA owns and produces CES®, the world's most significant tech event. Visit us at CTA.tech and follow us on @CTAtech.