As tariff pressures and economic uncertainty impact the business landscape, the Consumer Technology Association (CTA) released its U.S. Consumer Technology Industry Forecast at CES this week, showing the industry is projected to reach $565 billion in revenue in 2026, growing 3.7% year over year.
The forecast was unveiled during CTA’s Tech Trends to Watch event at CES 2026, where industry leaders are gathering to discuss the latest innovations and assess the year ahead.
The outlook underscores the 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,” said Gary Shapiro, executive chair & CEO. “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. 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.
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.
These innovations are on full display at CES 2026, where CTA’s Tech Trends to Watch highlights three major forces shaping the next phase of the consumer technology industry:
- Intelligent Transformation – Artificial intelligence is becoming foundational across devices, platforms and services, enabling smarter systems and more personalized consumer experiences.
- Longevity Technologies – Advances in digital health, remote care and wellness tools are accelerating as consumers seek technologies that support longer, healthier lives.
- Engineering Tomorrow – Continued investment in electrification, mobility, energy management and infrastructure modernization is laying the groundwork for future innovation.
Compared to last year, these trends are emerging amid greater economic pressure. Still, CTA’s forecast points to a sector adapting quickly, shifting toward software, services and premium innovation as the primary drivers of growth in 2026.
CTA’s January 2026 U.S. Consumer Technology Industry Forecast and One-Year Industry Forecast are based on qualitative and quantitative input from CTA member companies and industry participants, combined with analysis from CTA’s research team.
Information for this article was sourced from the Consumer Technology Association (CTA).
