US streaming will grow by a third in 2019 crossing $8 billion according to the US Consumer Tech Sales report compiled by the Consumer Technology Association. On-demand music services including Apple Music, Pandora and Spotify will see a 33% revenue growth in the year as increased adoption of products such as wireless earbuds and smart speakers drive more music subscriptions.
According to the CTA, US consumer tech sales are expected to reach $401 billion in 2019 driven by the growing popularity of streaming services, artificial intelligence (AI)-enabled emerging devices and in-vehicle technology. This represents a 2.2% year on year growth over 2018.
Gary Shapiro, president and CEO, CTA, said, “Enthusiasm for AI-powered technologies is skyrocketing – more consumers are discovering for themselves how tech innovation can change their daily lives for the better.”
Consumer spending on software and services (including music, video and gaming services) is projected to reach a new high of $75.6 billion in 2019 (a 14% growth over last year). Driving consumer demand are cloud-based subscription services supported across a range of devices.
The move to streaming seen in music is mirrored in other entertainment sectors. Live TV streaming and exclusive content through subscriptions will push consumer spending on video streaming services to $17.7 billion in 2019, up 25%. Gaming will see an 11% increase to $38.9 billion partly due to a shift towards cloud-based streaming models.
Smart Speakers
After rapid adoption of AI-enabled, voice-controlled smart speakers including Amazon Echo and Google Home, and increased voice integration in other devices such as TVs, soundbars and smart home devices, smart speaker sales will level off in 2019. Smart speakers remain a category to watch, with an expected 35.2 million units sold (1% increase over last year) and $3 billion in revenue (1% decrease) in 2019.
Wireless Earbuds
Leading devices including Apple AirPods and Beats by Dre Powerbeats Pro are expected to sell nearly 16 million units in 2019 (up 45%) and approach $2 billion in revenue (a 46% increase). CTA projects double-digit growth for the category over the next few years, as consumers pick premium audio experiences featuring true wireless technology.
