The Consumer Technology Association has kicked off their research briefing with claims that retail revenues for the consumer technology industry will grow 2.8% in 2024 to $512 billion alone in the USA, up $14 billion from 2023.

One of the key contributors are new products many that could not be launched in 2023 because of manufacturing and design problems in China due to COVID issues.

CTA’s One-Year Industry Forecast was very much about with AI Richard Kowalski, Sr. Director of Business Intelligence at CTA claiming that “Despite inflation in most sectors of the economy, it’s noteworthy that consumer tech products like TVs, smartphones, and gaming hardware are being bought at lower prices by consumers,”

“Technology by nature is deflationary as innovation leads industries to find newer, more efficient ways to compete. Looking ahead to 2024, I expect developments in artificial intelligence will accelerate growth for consumer and enterprise technology companies as they become more efficient and find more ways to meet consumer needs.”

To be competitive in 2024 retailers are going to have to bundle products while being more innovative in the way they go to market with offers.

2024 is set to be the year of the Mega bundle claims the CTA.

One area that is set to come under pressure is streaming services with content providers having to increase their promotion of “service bundles” to draw more consumer interest.

Mega bundles have the potential to offer consumers discounted rates on their favorite services while also simplifying their payment process.

Consumers will spend $14 billion (up 6% over 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.

In the gaming, PC and hardware markets market, product refreshes in tablets, augmented and virtual reality headsets and gaming (Major brand console refresh in 2024/2025) will boost gaming revenues in 2024.

Gaming will also be amplified by 12% growth in subscription services (growing to $3.5 billion in 2024). Generative artificial intelligence is expected to improve the gaming experience while also helping developers bring games to market faster.

Devices and Services Go Hand-in-Hand.

Services continue to be an essential part of product purchase, as seen through growth in the services segment. CTA estimates that 25% of all consumer spending on tech was for various software and subscription services in 2019.

In just 5 years to 2024, CTA projects the same services to be just under one-third of all consumer spending.

AI Hype

Hundreds of millions of smartphones and PCs shipping to the U.S. this year will tap the powers of generative AI through mobile apps, browsers, and on-device software. AI is being deployed in mobility safety systems, fitness tracking apps on smartwatches and picture quality improvements on televisions.

“I am excited by the breadth of innovation I’m seeing from companies large and small going into CES 2024,” said Gary Shapiro, president and CEO, CTA. “By embracing pro-innovation regulatory policies, encouraging investment, reforming immigration to embrace global talent, and enhancing trade partnerships that strengthen innovation, we can drive innovation benefiting all people.