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Forecast: Consumer tech spend to rise to 2024

January 5, 2024

The Consumer Technology Association (CTA) expects consumer tech retail revenues to increase 2.8 per cent in 2024, with TV unit sales are forecast to rise just 1 per cent this year.

After two years of down trending, US consumer technology spending is expected to return to growth in 2024, the CTA says in its latest industry forecast. US consumer tech industry retail revenues in 2024 are predicted to rise to $512 billion (€466.5bn), it forecasts in a report released, just before it hosts CES in Las Vegas.

“First and foremost, we expect 2024 to be an onramp to an upgrade cycle of devices purchased during the pandemic,” Rick Kowalski, senior director of business intelligence at CTA, said during a press call. “Retailers were able to successfully correct their inventories, readying themselves for new device inventory in the new year.”

However, sales of new televisions will see limited growth in terms of both units and revenues and will reach a general state of “stability,” Kowalski said. CTA expects 40.9 million TVs to ship in the US in 2024, up about 1 per cent from 2023. Revenues in the category are expected to be flat, at about $17.7 billion. However, CTA does expect to see some growth in sales of OLED (Organic Light-Emitting Diode) TVs, which feature better image quality and contrast than QLED (Quantum Dot LED) TVs. CTA sees sales of OLED TVs rising to 3.2 million units this year versus about 2.7 million in 2023.

CTA predicts that 2024 revenues for software and services, which include segments such as gaming and streaming, will rise 3.8 per cent, to $163 billion. CTA expects 2024 to be the year of the ‘megabundle’, noting that the organisation’s data shows that Gen Z consumers have nine subscriptions on average while millennials have eight.

There are already examples of these bundles, with T-Mobile adding Hulu to its lineup of complimentary streaming service add-on options that also include Apple TV+, Netflix and MLB.TV. Charter Communications, meanwhile, is now offering the ad-supported version of Disney+ at no added cost to customers on most of its pay-TV packages, and will be doing the same soon with ESPN+ for video customers who take Charter’s new sports tier.

Overall streaming revenues are expected to rise. CTA expects spending on video streaming to increase 4 per cent, to $48.3 billion in 2024. Audio streaming service spending is also expected to climb 4 per cent, to $13.9 billion.

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