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The Consumer Technology Association expects sales to show a continuation of recent strength in areas that accelerated during the pandemic.
Jon Cherry/Getty Images
U.S. consumer electronics retail sales should grow 4.3% this year to $461 billion, according to a new forecast by the Consumer Technology Association, the sponsor of the annual CES trade show, which gets under way this week.
The trade group expects sales to show a continuation of recent strength in areas that accelerated during the pandemic, like streaming video. The group also expects to see strong sales in areas benefiting from new product cycles, like videogames, where both
Sony
(ticker: SNE) and
Microsoft
(MSFT) have recently launched new game consoles.
Normally held in Las Vegas, CES this time will be held virtually, due to the limitations on travel created by the Covid-19 pandemic.
“As millions of Americans remain home and rely on tech to stay entertained, connected and healthy during the pandemic, streaming services, 5G connectivity and digital health devices will stand out in the tech sector in 2021,” CTA said in announcing the data.
Here’s a rundown on some of CTA’s sales predictions for this year.
With consumers still largely stuck at home due to he pandemic, CTA expects spending on software and streaming services to grow 11% this year to $112 billion, slowing from 31% growth in 2020. That includes an expected 15% increase in spending on video streaming to $41 billion, 19% growth in audio streaming to $10 billion, and 8% growth in videogame spending to $47 billion.
CTA expects a 16% spike in videogame console revenue to $6 billion, aided by new consoles.
The trade group expects television unit sales to fall 8% to 43 million, after record-setting shipments in 2020. Revenue from TV sales is projected to fall a more modest 1% to $22 billion, as consumers shift to large models. Expected growth areas include sets over 70 inches, which are projected to increase 6% to 3.3 million units, and 8K ultra high-definition TVs, projected to increase 300% to 1.7 million units.
Driven by the strong adoption of Apple AirPods and other wireless audio devices, CTA says wireless headphones and earbuds passed sales of comparable wired devices in 2020 for the first time. For 2021, the trend should continue: Wireless earbuds are expected to grow 32% to 91 million units in 2021, with revenue up 16% to $9.3 billion.
Laptop sales surged in 2020, as consumers bought new computers to use while working and learning from home. But CTA expects sales to moderate in 2021, with units projected to rise 1%, to 69 million, and revenue down 2%, to $38 billion.
The trade group sees 6% growth in the health and fitness category, driven by fitness trackers and smartwatches, to $9 billion.
CTA sees electric-bike sales up 60% in units to 1.6 million, and 44% in dollars to $2.6 billion.
Write to Eric J. Savitz at eric.savitz@barrons.com
