Consumer Electronics Forecast to Have a Record 2022
Smartphones, gaming technology and streaming services are three of the main drivers of what the Consumer Technology Association (CTA) expects to be a record 2022, according to the group’s consumer electronics forecast.
The CTA, which offers a twice-yearly report based on manufacturer shipments of more than 100 consumer technology products, expects U.S. spending to reach $505 billion in 2022, a 2.8% increase over last year. The 2021 total represented growth of 9.6% compared to 2020.
“The consumer technology industry has shown impressive resilience in the face of supply chain challenges that are affecting almost every sector of the economy,” CTA president and CEO Gary Shapiro said in a press release. “The pandemic gave people more time to explore new tech that made their lives healthier, safer and more convenient. We anticipate another year of growth for our industry based on the enormous demand we see from consumers for tech products and services.”
Consumer Electronics Forecast
The organization’s U.S. Consumer Technology One-Year Industry Forecast report expects smartphone shipments to reach 154.1 million units, which would represent $74.7 billion in shipment revenues. That would mark a 3% increase compared to 2021. A key driver is increased availability of 5G handsets. These devices will make up 73% of handset shipments and account for $61.37 billion in revenue. Foldable phones also will drive demand.
Streaming and cloud-based services will contribute $130 billion, an increase of 6% compared to 2021. Spending on video streaming will reach $47 billion, a 7% increase compared to 2021. Audio spending will reach $12.9 billion, a 15% increase and gaming will increase 5% to reach $53.6 billion.
Gaming will also push the total upward. CTA says that the fact that people spent more time entertaining themselves at home during the COVID-19 pandemic enabled the category to have a banner year in 2021. It grew 40% – from $4.4 billion to $6.1 billion – compared to 2020. The organization says that home gaming consoles will drive $6.5 billion in spending in 2022, a 6% increase compared to 2021.
Spending on virtual reality eyewear will rise from $774 million in 2021 to almost $1.3 billion in 2022, an increase of 66%. Automotive, mobility, wireless earbuds and smartwatches and health and fitness also will enjoy good years, according to the CTA consumer electronics forecast.