LAS VEGAS, Jan. 5 (Xinhua) -- The U.S. consumer technology industry is expected to generate 565 billion U.S. dollars in revenue in 2026, growing 3.7 percent year-on-year, despite tariff pressures and economic uncertainty, according to a forecast released on Sunday.
The forecast, released by the U.S. Consumer Technology Association (CTA) ahead of the 2026 Consumer Electronics Show (CES), notes that while overall industry growth is expected to remain steady, rising costs are affecting companies unevenly, with smaller firms more likely to face margin pressure or supply chain disruptions.
"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 and CEO of CTA. "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."
Despite these challenges, key segments are expected to continue expanding. Hardware revenues are forecast to grow 3.4 percent, while consumer spending on software and services is projected to rise 4.2 percent to nearly 194 billion dollars, according to the forecast.
Consumers are increasingly prioritizing software-driven value, shifting toward subscription-based services and flexible financing options, signaling a market increasingly driven by premium features and artificial intelligence-enabled experiences, according to the forecast.
The 2026 CES, the world's premier tech show organized by CTA, will take place in the U.S. city of Las Vegas from Jan. 6 to 9, drawing exhibitors and participants from more than 155 countries and regions. ■