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U.S. Tech Industry Expected to Hit USD565B in Revenue

(MENAFN) The American consumer technology sector is poised to reach $565 billion in total revenue throughout 2026, marking a 3.7 percent annual expansion even as tariff threats and economic volatility loom large, newly released projections reveal.

The U.S. Consumer Technology Association (CTA) unveiled the projections Sunday, timing the release just before the 2026 Consumer Electronics Show (CES) kicks off. The data shows the sector maintaining momentum broadly, though escalating expenses are creating an uneven landscape where smaller enterprises face heightened risks of squeezed profit margins and fractured supply networks.

Gary Shapiro, executive chair and CEO of CTA, emphasized the sector's resilience amid mounting headwinds. "Even as tariffs and broader economic pressures intensify, Americans continue to invest in technology that improves productivity, connectivity, and quality of life," Shapiro stated. "But the impact of economic uncertainty is becoming more visible as companies move through pre-tariff inventories and face tougher cost decisions heading into 2026."

Specific technology categories demonstrate continued strength despite these obstacles. Physical hardware sales are anticipated to climb 3.4 percent, while consumer expenditure on software and related services is projected to surge 4.2 percent, approaching nearly $194 billion, the projections indicate.

American buyers are demonstrably shifting priorities toward software-centric value propositions, gravitating toward subscription models and adaptable payment structures—a transformation pointing to a marketplace increasingly shaped by premium capabilities and artificial intelligence-powered functionalities, the forecast data suggests.

The 2026 CES, the globe's leading technology showcase organized by CTA, launches in Las Vegas from January 6 through 9, attracting exhibitors and attendees from over 155 countries and regions worldwide.

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