Consumer Technology Spending (2021–2027)
With electronics ranking high on the list of the top ecommerce categories in the United States, it sure seems like a lucrative niche to go into when thinking about starting an online business.
But before you do so, it would help to know just how much revenue such products are generating to better understand their growth potential. Here’s a look at consumer technology spending in the US in recent years.
Consumer technology spending in the US: 2021–2023
According to a recent report, consumer technology spending in the US is forecast at $485.5 billion in 2023.
Of this, $151 billion is expected to be on software and services. This constitutes 31.1% of the total spend, a marginal increase from the previous year, when software and services made up 30.1% of the overall consumer technology spending.
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The total consumer technology spending expected in 2023 marks a 2.4% annual decrease from 2022’s numbers and is the second consecutive year expenditure is set to fall. In 2022, spending dipped by 2.8%, the first decrease in at least four years.
Prior to this, consumer technology spending had been increasing. For instance, in 2021, total expenditure was recorded at $511.8 billion, after a 9.6% rise from the previous year. It is also the largest annual increase expected between 2021 and 2027.
Consumer technology spending in the US: 2024–2027
Looking ahead, consumer technology spending is set to rise. In 2024, this is forecast to increase by 2.7%, to $498.6 billion. A growth rate of 3.4% is expected in 2025, which will bring total spending to $515.4 billion, surpassing half a trillion dollars for the first time.
Experts predict this to continue to grow in the two proceeding years and hit $542.7 billion by 2027. From 2021 to 2027, annual consumer technology spending is forecast to rise by 6% overall and at an average annual growth rate of 2.2%.
Sectors driving consumer technology spending
Industry experts expect wireless communications to be the biggest drivers of US consumer technology spending in 2023. By analysts’ forecast, expenditure on these products will total $72.7 billion.
Personal computers and accessories are also predicted to be key drivers of the consumer technology industry, with total revenues from these two categories forecast to hit $56.7 billion and $21.2 billion, respectively.