Streaming services and wireless earbuds, as well as 5G connectivity and AI-powered devices, will drive record spending on consumer tech in 2020. A new report released at CES on Monday by the Consumer Tech Association (CTA) predicted that U.S. sales would hit $422 billion this year.
AirPods Part of $8.2 Billion Industry
One of the key drivers of growth is wireless earbuds. Apple is a leader in this field courtesy of AirPods and AirPods Pro. The report found that wireless earbud sales will increase by 35% in 2020 compared to 2019, reaching 67 million units, generating $8.2 billion in revenue.
Apple Music and Other Streaming Services Set to Grow
By contrast, Apple was a relative latecomer to the video streaming game. However, it is now in a high-growth market. The report said consumer spending in this area will increase by 29% from last year to $24.1 billion. This is in part down to the entry of firms like Apple and Disney into streaming wars.
The CTA predicted spending on-demand music services such as Apple Music, Pandora, and Spotify will increase too. It said such spending would total $9 billion in 2020, an increase of 15% from the year before. It added that this market has room to grown further as more-and-more people buy smart speakers and wireless earbuds.
Elsewhere, the report noted consumers are upgrading their smart speakers. The Apple HomePod and competitors like Google Home and Amazon are Echo are being replaced with devices that are both voice-enabled and have a screen. It projected sales of 39 million units, a 5% increase from 2019, with revenue up 14% at $4.2 billion.
Finally, the CTA predicted sales of 20.5 million 5G smartphones. Apple is expected to launch a 5G iPhone this year.