The Consumer Technology Association (CTA) has launched the 2020 Sales & Forecast Study showing spending on software and streaming services (including music, video and gaming) is expected to grow 11% and reach $81.2 billion in 2020. Consumers are projected to spend $24.1 billion on video streaming services such as Netflix, Disney+, Amazon Prime Video and Hulu in 2020 (up 29%) while CTA also expects on-demand music services, such as Apple Music, Pandora and Spotify, to reach $9 billion in revenue, a 15% increase from 2019.
Furthermore, consumers are adapting subscription-based streaming models for gaming, through services such as Google Stadia and Apple Arcade, and are expected to spend $38.3 billion on video game streaming services (up 5%).
The skyrocketing popularity of streaming services and wireless earbuds along with 5G connectivity and artificial intelligence (AI)-enabled devices will drive revenue growth for the U.S. consumer tech industry to a record $422 billion in retail revenues in 2020, nearly 4% growth over last year, according to the new Consumer Technology Association (CTA) report.
“More and more consumers are embracing the faster connectivity, advanced intelligence and seemingly infinite content that technology offers today – pushing consumer technology industry revenues toward another record-setting year in 2020,” said Gary Shapiro, president and CEO, CTA.
TVs continue their reign as the flagship technology in many U.S. homes. Overall, TV manufacturers will ship 40.8 million units in 2020 (2% increase) driving $23.4 billion in revenue (flat with 2019), as new TV features drive interest for consumers. Replacement upgrades will be driven by bigger screens and TVs featuring 4K Ultra High Definition (4K UHD) resolution and high dynamic range (HDR). In 2020, 4K UHD sets will account for 25 million units (12% increase) and $17.6 billion in revenue (2% increase). And 8K UHD TVs will cross the one billion-dollar milestone ($1.6 billion) in revenue, selling 504,000 units.