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.

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Consumer technology spending in the US

According to a recent report, consumer technology spending in the US is forecast at $485 billion in 2023. 

The total consumer technology spending expected in 2023 actually marks a 2.4% annual decrease from 2022’s numbers and is the second consecutive year expenditure is set to fall. In 2022, consumer technology spending dipped by 2.9%, the first decrease in at least four years.

Prior to this, consumer technology spending had been increasing year after year. In 2018, total expenditure was recorded at $413 billion. This rose by 5.3%, to $435 billion in 2019, before rising another 7.4% in 2020, to $467 billion.

The biggest annual increase in recent years came in 2021, when consumer technology spending surged by 9.6% to over half a trillion dollars. At $512 billion, this was also the highest amount of revenues generated by consumer technology goods ever recorded in a single calendar year.

Approximately two-thirds of the expected total consumer technology spending in 2023 is forecast to be on hardware, with the remaining on software and services. The share of hardware products has been increasing over the past few years. In 2018, around 20% of the total consumer technology spending was on hardware.

Sectors driving consumer technology spending

Industry experts say technology services are set to be one of the biggest drivers of US consumer technology spending in 2023. This includes gaming, video, audio, and apps. By analysts’ forecast, expenditure on these products will grow for the fifth consecutive year and contribute to $151 billion in revenues.

Automotive technology and health and fitness technology are also predicted to be key drivers of the consumer technology industry. Total revenues from these two sectors are forecast to grow, by 4% and 9%, to $15.5 billion and $928 million, respectively. 

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