The Consumer Technology Association (CTA) recently released its latest industry forecast. The report projects that US consumer technology retail revenues will reach $565 billion in 2026. This represents a 4.1% increase over the previous year. It is a growth despite possible tariffs and other economic headwinds. Innovation in artificial intelligence remains one of the major drivers for this upward trend. Consumers continue to create demand for smarter devices both in their homes and daily lives. Remarkably, this industry shows resilience amidst complexity in the global market.
The data highlights several key areas of growth for the coming year. Artificial intelligence is now a standard feature in many new products. This includes everything from laptops to advanced home appliances. The Consumer Technology Association (CTA) notes that services also play a huge role. Subscription models for software and entertainment continue to generate steady income. These digital services help balance the costs of hardware manufacturing. More people are investing in health tech and high-end audio gear.
Future Outlook from the Consumer Technology Association (CTA)
Industry leaders gathered at CES to discuss these financial findings. They believe that tech is now a necessity for most US households. This shift in consumer behavior supports long-term industry stability. Even with rising trade costs, the sector remains a vital growth engine. The report suggests that efficiency gains from AI will lower long-term prices. This keeps technology accessible to a wider range of buyers.
Gary Shapiro, the Executive Chair & CEO of the Consumer Technology Association (CTA), said:
“Despite a shifting economic landscape, the technology industry remains a core pillar of the American economy. Our latest data shows that innovation continues to drive consumer spending. We see massive potential in AI-integrated hardware and the expanding services sector. This growth is a testament to the industry’s ability to adapt and thrive.”
The forecast shows that while overall growth remains steady, the burden of rising costs is falling unevenly across the industry, with smaller companies more likely to face margin pressure or supply chain disruptions.
Despite the difficulties, the major segments keep growing. Hardware industry revenue is predicted to increase 3.4%, with expenditure on software and services to rise 4.2% to almost $194 billion. Yet, the predicted growth of unit sales will be no more than 0.7% in 2026.
Consumers are increasingly prioritizing software-driven value, anchoring to subscription services, and leveraging flexible financing options, signaling a market increasingly driven by premium features and AI-enabled experiences.
Relative to the previous year, these factors are taking place while facing more economic pressures. However, CTA’s projections show an industry that is efficiently adapting to new trends, focusing on software, services, and high innovation as the main engines of industry growth in 2026.
Looking for more updates on financial innovation and revenue-driven technology? Visit RevTech News for expert insights and the latest trends.
News Source: PRNewswire.com
