Interest remains high for many consumer electronics products relative to pre-pandemic years, showing that consumer technology will remain relevant and resilient in the year to come. Electronics such as smartphones, computers, and TVs help keep us connected and entertained from the comfort of our homes. However, the Consumer Technology Association (CTA) is predicting a decline in industry revenue in 2022. The CTA predicts that hardware revenues will see a 1.4% decline, due to inflation and chip shortages, as software and streaming spending will see a 3.5% rise, according to CTA’s U.S. Consumer Technology One-Year Industry Forecast, 2018-2023. Whether you are a consumer or business owner, keeping up with these numbers and trends can help you better prepare for the future. Here are some consumer electronics industry trends and highlights to follow in 2022.
Consumer Technology Market Overview
The CTA put together a survey with U.S. adults in their 2022 Consumer Technology Ownership and Market Potential Study which found that 68% of households agreed that technology products are more expensive this year than last year and 51% agree that they are less likely to purchase technology products this year because of inflation. Yet, this doesn’t mean consumers aren’t interested in buying the latest and innovative technology. There are other kinds of technology on the rise as well as upgrades to be made that can save consumers money in the long run.
Trend Highlights: Areas for Growth in 2022
73% of smartphones have incorporated 5G technology this year. This indicates that there will be upgrades in other technologies, such as TVs and computers, to better support the estimated 1.5 million-plus households with broadband 5G modems by the end of 2022. The CTA also expects to see growth in other areas such as gaming software and in-service spending, smart home technology, and health technology.
In the audio space, it is important to note that ownership of wireless audio electronics has surpassed wired audio products this year as sound quality, battery life, and connectivity improve.
Gaining popularity in the consumer electronics world are smart home devices, wearable health monitors, and entertainment devices. Consumers are expected to gravitate toward energy-efficient smart home products such as smart thermostats, light bulbs, and switches to save on high electricity bills.
Health tracking has become easier with the use of smartwatches and fitness machines. In addition to those assets, there are innovations being made in the at-home health monitoring space that could help both you and your doctor track your blood pressure, diabetes, and other conditions from the comfort of your everyday life.
In our current world of constant entertainment, cloud gaming, AR and VR, and OLED TVs are expected by the CTA to be the entertainment trends for this year and in the future, due to the constant upgrades to better displays, the need for on-the-go entertainment, and constant hype around the metaverse.
Total Consumer Technology Retail Revenue
2021 saw the consumer technology industry become a $504 billion industry. However, as mentioned before, with economic issues, the CTA expects to see a 0.2% drop, to $503 billion, which is still well beyond 2019’s pre-pandemic total of $452 billion.
The tech industry will continue to grow in the future with new innovations and upgrades, as homeowners look for ways to save money, make their lives easier, look after their health, and get in on the biggest technology trends,
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All information and statistics mentioned above comes from research done by the CTA. Their references are listed below:
24th Annual Consumer Technology Ownership & Market Potential study, © 2022 Consumer Technology Association.
CTA U.S. Consumer Technology One-Year Industry Forecast, 2018- 2023 (July 2022), © 2022 Consumer Technology Association.