Consumer Technology Association Forecasts 2026 Consumer Tech Revenue to Reach $565 Billion
The Consumer Technology Association (CTA) forecasts 2026 consumer tech revenue to reach $565 billion, anticipating robust growth of approximately 3.7 % year-over-year in the U.S. consumer technology industry despite ongoing tariff pressures, economic uncertainty and shifting supply conditions as revealed in its 2026 forecast released ahead of CES 2026.
The outlook presented during CTA’s Tech Trends to Watch event in Las Vegas underscores the sector’s resilience as companies navigate economic headwinds while consumers continue investing in technology that enhances connectivity, productivity and quality of life.
Growth Across Hardware, Software and Services
According to the CTA’s forecast, hardware revenue is expected to expand by around 3.4 %, while spending on software and services is projected to grow by 4.2 %, approaching nearly $194 billion in 2026. Unit shipments, however, are expected to show modest movement, with only about 0.7 % growth, reflecting changing consumer buying patterns where premium features and value-added experiences are increasingly driving purchases.
This split highlights how consumers are gravitating toward subscription-based services, flexible financing options and AI-enabled devices that deliver ongoing value beyond one-time hardware purchases.
Navigating Economic Headwinds
CTA’s forecast comes amid rising costs and tariff-induced pressures that are unevenly affecting companies, particularly smaller tech firms facing tighter margins and supply chain challenges. Despite this, the broader market’s ability to grow signals sustained demand for consumer technologies across categories and price points from connected appliances and mobile devices to software-driven experiences and smart home systems.
Gary Shapiro, Executive Chair and CEO of CTA, noted that even as broader economic pressures intensify, U.S. consumers remain committed to buying technology that supports lifestyles and workflows, driving the sector’s steady expansion into 2026.
Broader Industry Trends and CES 2026 Context
The CTA’s revenue projection sets a positive tone for CES 2026, the global stage where industry leaders gather to unveil innovations and explore emerging trends shaping the tech landscape. CTA’s Tech Trends to Watch series underscores several forces influencing the industry’s direction, including intelligent transformation through artificial intelligence, longevity technologies in digital health and wellness, and ongoing investments in mobility, energy management and engineering innovation.
As tech companies adapt to evolving economic conditions and consumer expectations, the projected $565 billion revenue milestone reflects both the resilience of the consumer technology sector and the growing role of software, services and advanced hardware in driving sustained market growth.
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