LAS VEGAS-–Despite worries about the impact of tariffs and other economic uncertainties, the Consumer Technology Association (CTA) has released its U.S. Consumer Technology Industry Forecast showing the industry is projected to reach $565 billion in revenue in 2026, growing 3.7% year over year.
The forecast was unveiled in the run-up to the start of CES 2026, where exhibits are open from Jan. 6-9.
The trade group said the outlook underscores the consumer electronics industry’s resilience at a pivotal moment, as companies navigate economic challenges, shifting supply chains and growing pressure on consumer spending.
“Even as tariffs and broader economic pressures intensify, Americans continue to invest in technology that improves productivity, connectivity and quality of life,” CTA Executive Chair and CEO Gary Shapiro said. “But the impact of economic uncertainty is becoming more visible as companies move through pre-tariff inventories and face tougher cost decisions heading into 2026.”
The forecast shows that while overall growth remains steady, the burden of rising costs is falling unevenly across the industry, with smaller companies more likely to face margin pressure or supply-chain disruptions.
Despite challenges, key segments continue to expand, the group reported. Hardware revenues are expected to grow 3.4%, while consumer spending on software and services is projected to rise 4.2%, reaching nearly $194 billion. However, unit shipments are forecast to grow just 0.7% in 2026.
The forecast also noted that consumers are increasingly prioritizing software-driven value, anchoring to subscription services and leveraging flexible financing options, signaling a market increasingly driven by premium features and AI-enabled experiences.
