The first-up official event at CES is always the show organisers’ analyst briefing on where the tech market is going, with the Consumer Technology Association (CTA) projecting a fall in revenues across the board. The good news is that gaming, video, audio, and apps will grow for the fifth straight year, with the video streaming market set to grow as consumers stay at home instead of dining out due to inflation and rising interest rates.
What’s interesting is that the Australian market is quite similar to the US when it comes to the sale of consumer technology, and while the volumes are not the same the percentage of penetration of CE products is similar.
In Australia several senior executives believe the streaming market is close to peaking.
According to CTA executives, retail revenues will fall in 2023, with revenues set to be slightly above pre-pandemic levels, following a three-year surge in consumer technology spending that peaked last year.
Despite a looming recession and inflation, it’s believed consumer technology revenues will remain roughly above pre-pandemic levels.
Notable areas of revenue growth for the technology industry in 2023 include:
Technology Services: Consumer spending on technology services including gaming, video, audio, and apps will grow for the fifth straight year, generating a lift in consumer spending.
Health and Fitness Technology: Health and fitness services including fitness subscription services and digital therapeutics are projected to rise 9 per cent in 2023. One contributor, if approved in Australia, will be over-the-counter hearing aids that could end up being sold in stores for the first time.
CTA has lowered expectations for sales of laptops, LCD TVs, tablets, smartphones, and gaming consoles. Despite flat overall TV sales, OLED TV is projected to add to retail revenues in 2023, with premium products tipped to be the standout market.
Brands such as Sony with their PS5 and Microsoft with their Xbox are set to suffer as gaming console sales fall significantly.
On the other hand, portable hand-held gaming is set to grow- with this market up 41 per cent over 2022.
CTA has been at the forefront of advocacy for policies that support US businesses in consumer technology. “Leaders in Washington can help American entrepreneurs by advocating for a proactive and pro-innovation approach to trade,” says CTA Head Gary Shapiro. “We need to eliminate tariffs that amount to taxes on US businesses, and spur exports by striking new trade deals with our friends and allies.”
Also set to grow is the networking market as consumers look for more speed and improved performance for new home automation networks and gaming.
