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U.S. Consumer Technology Revenue Set to Reach $565 Billion by 2026

In a bold forecast presented at the CES 2026 event, the Consumer Technology Association (CTA) revealed that despite ongoing tariffs and economic uncertainties, the U.S. consumer technology sector is projected to generate a substantial $565 billion in revenue by 2026. This increase represents a year-over-year growth of 3.7%, demonstrating the sector's resilience as it navigates a challenging business landscape.

During the Tech Trends to Watch presentation at CES, industry leaders gathered to discuss emerging innovations and the outlook for the year ahead. Gary Shapiro, President and CEO of CTA, emphasized the determination of American consumers to continue investing in technology that enhances their productivity and connectivity. "Even as tariffs and broader economic pressures intensify, Americans continue to invest in technology that improves productivity, connectivity, and quality of life," Shapiro stated, reflecting the optimism within the industry.

The forecast highlights critical segments within the consumer technology space slated for growth. Notably, hardware revenue is expected to increase by 3.4%, while consumer spending in software and services is poised for a more pronounced rise of 4.2%, culminating in nearly $194 billion in spending. However, unit shipments are forecasted to experience only a modest increase of 0.7% in 2026.

This shift towards higher spending on software aligns with a growing consumer preference for subscription services and innovative financing options. As consumers prioritize quality and premium features, the technology market is evolving, increasingly driven by advancements in artificial intelligence and other enhancements.

One of the significant trends shaping the future of consumer technology is the emphasis on Intelligent Transformation. AI is positioning itself as a foundational element across various devices, platforms, and services, leading to smarter systems that facilitate personalized consumer experiences. In tandem, the rise of Longevity Technologies is noticeable, with digital health advancements and remote care tools gaining traction among consumers who are keen on technology solutions that promote healthier, longer lives.

Furthermore, continued investment in Engineering Tomorrow strategies is evident, focusing on electrification, mobility, energy management, and infrastructure modernization. These areas are setting the stage for future innovations.

Yet, the forecast also notes the uneven burden of escalating costs, with smaller companies facing more significant challenges from margin pressures and supply chain disruptions. As the industry adapts rapidly, businesses are prioritizing shifts towards software-based offerings, premium innovations, and value-driven solutions as fundamental growth drivers for 2026.

For those who missed the CES presentation, a livestream of the CES 2026 Trends to Watch session is available, offering insights from CTA’s research teams and industry leaders.

In conclusion, while the economic environment presents hurdles, the consumer technology industry’s adaptability and innovation showcase its potential for continued growth. The CTA's 2026 forecast serves as an insightful look at how technology will remain an integral part of American consumers' lives, even in uncertain times.

For more detailed insights, please visit CTA.tech or follow CTA on social media platforms.