The Internet of Things (IoT) will lead the U.S. consumer technology industry to $287 billion in retail revenues ($224 billion wholesale) in 2016, said Consumer Technology Association (CTA).
While IoT stands as the major growth factor, smartphones, televisions, laptops and related technology are predicted to lead to one percent industry growth in 2016. These categories when added to tablets and desktops add to 51 percent of the consumer tech industry’s revenue. However, the triggers for industry growth would be innovations such as wearables, virtual reality and drones according to the report.
“The exponential growth of the IoT and the lightning-fast speed of innovation are key reasons we’ll see such strong growth across so many tech categories. Highly sophisticated technology is becoming more affordable and accessible – improving our safety, productivity and entertainment,” said Gary Shapiro, president and CEO, Consumer Technology Association.
CTA forecasts overall industry growth in 2016, but also adds that the huge acceptance of mature categories, such as tablets, televisions, PCs and laptops, and continued industry innovation are reducing the growth and cutting off margins for some manufacturers and retailers.
“Aggressive competition, longer product replacement cycles and disruptive innovation replacing legacy products create financial challenges for segments of our industry,” conveys Shapiro. “However, we believe newer categories, continuing innovation and improving economic conditions provide additional cause for industry optimism.”
CTA’s consensus forecast, including more than 300 tech products reflects U.S. factory sales to dealers. The semi-annual report serves as a standard for the consumer technology industry, measuring the size and growth of all involved categories.
The U.S. Consumer Technology Sales and Forecasts, designed and formulated by CTA is published twice a year, in January and July.