The Consumer Technology Association (CTA) has released its 2025 Tech Trends Forecast, projecting that the U.S. consumer technology industry will reach a record-breaking retail revenue of $537 billion this year, marking a 3.2% increase from $520 billion in 2024. This growth is primarily driven by advancements in artificial intelligence (AI) and its integration across various sectors.
Key Highlights from the Report:
- Revenue Breakdown: Hardware sales are expected to contribute $353 billion, while software and services will account for $184 billion. IoT World Today
- AI Adoption: The report indicates that 64% of U.S. consumers utilize AI tools for online shopping, with 40% more likely to make purchases when AI personalization is involved. Additionally, 93% of U.S. adults are familiar with generative AI, and 61% use AI tools in their workplace.
- Smart Home Technology: A significant 80% of U.S. consumers view smart home devices as beneficial for aging in place, and 52% own at least one of the top ten perceived age-tech products. CES
- Mobility Innovations: The transportation sector is experiencing rapid transformation through electrification, enhanced connectivity, and autonomous capabilities. Companies like Scout Motors, BYD Battery, and Blink Charging are leading developments in electrified ecosystems, while Aeva, Mobileye, and Waymo are advancing autonomous vehicle technologies.
However, the industry faces potential challenges. Proposed tariffs on technology products could lead to a decline in U.S. consumer purchasing power by $90 billion to $130 billion, potentially reducing sales of laptops, tablets, gaming consoles, and smartphones.
Overall, the CTA’s forecast underscores the robust growth trajectory of the U.S. consumer technology sector, propelled by AI integration and innovations in smart home and mobility solutions.
