In a world often characterized by economic uncertainty and tariff pressures, the landscape of consumer technology is undergoing notable transformations. On January 4, 2026, the Consumer Technology Association (CTA)® unveiled its U.S. Consumer Technology Industry Forecast during the highly anticipated CES® 2026 event in Las Vegas. According to the forecast, the industry is projected to hit an impressive $565 billion in revenue by the end of 2026, marking a 3.7% increase from the previous year. This growth will be on full display during the CTA’s Tech Trends to Watch segment, which serves as a platform for industry leaders to engage with the newest innovations and trends shaping the sector.
The current forecast emphasizes resilience in the face of economic hurdles, as businesses confront shifting supply chains and evolving consumer behavior. Gary Shapiro, Executive Chair & CEO of CTA, noted the paradoxical nature of consumer investment in technology even amid rising costs. “Even as tariffs and broader economic pressures intensify, Americans continue to invest in technology that improves productivity, connectivity, and quality of life,” Shapiro highlighted, pointing out that the economic landscape is growing increasingly complex for companies moving into 2026.
While the overall growth of the industry may appear steady on the surface, challenges are manifesting differently for various segments. Smaller companies, in particular, are experiencing greater stress due to increased margin pressures and potential supply chain disruptions. The forecast remains optimistic for certain key segments; hardware revenues are expected to rise by 3.4%, while spending on software and services is likely to surge by 4.2%, reaching nearly $194 billion. However, it is interesting to note that unit shipments are projected to grow by just 0.7% in 2026, indicating a shift toward quality and features over volume.
Amidst these challenges, consumers are shifting their focus toward software-driven solutions. Emphasizing the value of subscription services and flexible financing options, there’s a noticeable trend of prioritizing premium features and artificial intelligence-enabled experiences. These consumer preferences are expected to shape the industry significantly in the coming years.
CES 2026 is showcasing these emerging trends, with CTA’s Tech Trends to Watch spotlighting three pivotal forces shaping the future of consumer technology:
- Intelligent Transformation — The integration of artificial intelligence (AI) is becoming a fundamental aspect of devices, platforms, and services, fostering not only smarter systems but also highly personalized consumer experiences.
- Longevity Technologies — Provoked by a growing consumer desire for enhanced health and well-being, advancements in digital health and remote care technologies are accelerating, marking a shift toward longer, healthier lives.
- Engineering Tomorrow — Ongoing investments concentrated in areas such as electrification, mobility, energy management, and infrastructure modernization are aligning to pave the way for future technological breakthroughs.
While these trends are emerging against a backdrop of greater economic pressures compared to previous years, CTA’s forecast indicates a sector that is rapidly adapting. The industry is increasingly leaning toward software, services, and premium innovations as the key drivers for growth in 2026.
For those interested in delving deeper into these insights, a livestream of the CES 2026 Trends to Watch session is available, taking place during the Research Summit, presented by CTA, at 10 a.m. PT on January 5. An on-demand replay will also be accessible at CES.tech.
As a point of methodology, the January 2026 U.S. Consumer Technology Industry Forecast and the accompanying One-Year Industry Forecast rely on qualitative and quantitative input from industry participants along with comprehensive analysis from CTA’s research team, ensuring a well-rounded perspective on the industry’s future.
For continuous updates and insights, consider signing up for CTA Research Insights.
About Consumer Technology Association (CTA)®:
As the largest technology trade association in North America, CTA represents a sector of innovation that spans from startups to global brands, contributing to over 18 million American jobs. The CTA owns and produces CES®—the premier tech event globally, where pivotal innovations first come to light. Explore more at CTA.tech and follow the organization on Twitter at @CTAtech.
About CES®:
CES is recognized as the most influential tech event globally, serving as a showcase for groundbreaking technologies and a venue for innovators to connect. This influential event is where the world’s leading brands engage with new partners and where innovation takes center stage. CES 2026 will occur from January 6-9, 2026. For more information, visit CES.tech and follow CES on social media.
SOURCES: Consumer Technology Association
