Domestic consumer spending on video and music streaming services is projected to increase 25% to $26 billion in 2019, according to new data from the Consumer Technology Association.
On-demand music services (e.g., Spotify, Pandora or Apple Music) will bring in an expected $7.7 billion in revenue, up 22% as providers race to gain subscribers.
Spearheaded by artificial intelligence (AI) technology being incorporated in myriad consumer electronics devices, consumer spending on smartphones, smart home devices, smart speakers and subscription streaming entertainment will drive the domestic consumer technology industry to a record-breaking $398 billion in retail revenue in 2019 – up 3.9% from 2018, according to the CTA.
“Our latest research shows innovations in AI and faster connectivity are among the key drivers for the industry’s record growth,” CEO Gary Shapiro said in a statement.
Voice-controlled smart speakers, including Amazon Echo and Google Home are projected to sell 36.6 million units (up 5% year-over-year) and earn $3.2 billion in revenue (up 7%). Although adoption is slowing due to rapid voice integration in other devices such as TVs, smart home devices and other audio products, smart speakers remain a category to watch as consumers embrace the benefits of AI in their home.
“The future is bright for many tech products consumers already know and love, as stalwart revenue drivers including smartphones, laptops and televisions continue to innovate,” said Steve Koenig, VP of market research, CTA.
The top three industry revenue drivers continue to be smartphones, laptops and televisions.
After the introduction of pricier, flagship models from major manufacturers, smartphone revenue is expected to reach $80 billion, a 2% increase in 2019. Unit shipments are expected to grow 1% to 170.7 million.
This year marks the launch of the first 5G smartphones on the market. CTA expects 2019 U.S. sales will reach 2.1 million units and cross $1 billion in revenue. By 2022, 76% of all smartphones sold will be 5G-enabled.
In 2019, the U.S. laptop market will sell 51 million units, up 3% over last year, and earn $28.4 billion in revenue (unchanged from 2018). Convertible models and cloud-based laptops remain high-growth areas within computing, as consumers continue to upgrade to the latest operating systems.
Overall, unit sales of total digital displays in 2019 will remain above 42 million units (down 1%) and register $22.6 billion in revenue (up 2%). More than three-quarters of TV shipments will be sets with 40-inch screens or larger.
Future upgrades will be driven by 4K Ultra High-Definition (4K UHD) sets, which now make up more than half of all TV unit sales. 4K UHD will sell 22 million units (14 percent increase) and $16.4 billion in revenue (up 8%). Raising the bar on resolution, inaugural shipments of 8K UHD TVs will reach $545 million in revenue. And budding OLED shipments will reach 1.4 million sets with double digit growth through 2022.
“2019 will mark the introduction of 5G-enabled devices and smartphones and next-gen screen technology such as 8K UHD televisions to the market,” said Koenig. “And constantly-evolving content from streaming services that enhances the experience across ‘the three screens’ – TVs, smartphones, laptops – will help push consumer spending in tech to new levels.”