TV Units to Fall 8% After Record 2020, but Dollars to Decline Only 1%: CTA
After a “record-setting” year for TV as consumers shifted discretionary dollars to TV purchases, shipments are forecast to drop 8% this year to 43 million units, said CTA Monday. That would still be the second-highest amount on record, it said, with revenue off 1% to $22 billion. Growth areas for the segment are 70-inch and larger TVs, forecast at 3.3 million units (up 6%), and 8K TVs (1.7 million, up 300%), it said.
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U.S. retail tech industry sales revenue will reach $461 billion in 2021, up 4.3%, CTA said, noting the COVID-19 pandemic will continue to keep Americans at home using tech to stay connected and entertained. “While the road to a full economic recovery is long and intertwined with a complex vaccine rollout, the tech industry’s ability to meet the moment during this crisis has been critical,” said CTA CEO Gary Shapiro.
Spending on streaming services and software is projected to grow 11% from 2020, to $112 billion, after 2019-20 growth of 31%. Exclusive content and cord cutting are driving households to take on multiple subscriptions. Video spending is seen rising 15% to $41 billion in 2021, and audio revenue for the year is estimated at $10 billion, rising 19% from last year.
In gaming, spending on videogame software is projected to reach $47 billion in 2021, up 8%. The latest game consoles from Microsoft and Sony will continue to drive sales “as the supply chain catches up with consumer demand,” CTA said. Combined home and portable console shipments will reach 18 million units in 2021, up 3%, to $6 billion in revenue, a 16% bump, it projected.
Smartphone shipments will increase 4% to 161 million units this year, for $73 billion, a 5% increase, after a year of “slight declines,” said CTA. Over 67 million 5G smartphones are expected to ship, with 298% growth over last year as the technology continues to build out. 5G revenue is projected at $39 billion, up 218% as consumer awareness grows and network coverage expands.
After a record year fueled by COVID-19 stay-at-home restrictions, CTA expects continued growth for laptops, with 69 million shipments, up 1%; revenue, though, is expected to slip 2% to $38 billion, said the report.
True wireless earbuds continue to drive growth in the headphone category, after wireless headphones and earbuds topped wired styles for the first time last year. Some 91 million true wireless earbuds are forecast to ship this year, up 32%, with revenue 16% higher at $9.3 billion.
Do-it-yourself smart home products are seen growing in 2021 to 99 million units (up 9%) and $15 billion (up 3%) as consumers spend more time at home. Growth segments are smart displays, smart doorbells and smart appliances, CTA said, with safety and convenience upgrades “top of mind” for consumers.