Despite last-minute cancellations by marquee brands due to omicron, the digital shift presses on with Consumer Electronics Show 2022 (CES) owner the Consumer Technology Association (CTA) announcing on Monday (Jan. 3) that sales of consumer electronics are expected to surpass $505 billion in 2022, continuing a strong run for the industry through the pandemic.
While CES 2021 was all virtual, the return of the in-person show Jan. 5-8, 2022, in Las Vegas was widely heralded as industry writ large returning to corporate events. Omicron’s arrival triggered a wave of major names to cancel their planned presence including Amazon, Facebook, Google, Intel and Microsoft, among others, which for the most part pivoted to virtual presentations.
That’s having no effect on industry outlook, however, as the CTA announcement notes that “The U.S. consumer technology industry is projected to generate over $505 billion in retail sales revenue for the first time ever,” adding that “the projection represents a 2.8% revenue increase from 2021’s impressive 9.6% growth over 2020. Strong demand for smartphones, automotive tech, health devices and streaming services will help propel much of the projected revenue.”
A big story at CES 2022 is that voice and health tech are on the agenda. On Thursday (Jan. 6), Abbott Labs CEO Robert Ford becomes the first healthcare CEO to deliver a CES keynote.
In a recent Yahoo Finance interview, Ford said, “I think it’s very timely that a health care company does deliver that keynote, obviously, for two reasons. One, we’ve been through this incredible experience with the COVID and the pandemic, and the importance of Health is this front and center for sure. But I also think it’s important because of this convergence we’re seeing between health care technology and digital technology coming together.”
In the C-Space pavilion, Thursday (Jan. 6) is a day dedicated to emerging voice technologies.
On predictions for 2022 sales, CES started with phones, saying, “5G handsets will make up 73% of smartphone shipments ($61.37 billion in revenues) in the coming year. The introduction of foldable phones represents a new option for consumers that will help drive demand.”
Anticipating an increase of 6% over 2021, the association sees total spending on streaming services and software reaching $130 billion in 2022. While video and gaming will each see single digit increases, CES said “Streaming services that offer music, audio books and podcasts will see consumers spend $12.9 billion in 2022, up 15% over last year.”
Gaming saw impressive growth through the pandemic, which CES expects to slow this year, with one exception: goggles for the metaverse.
Per the statement, “CTA projects relatively modest gains in 2022, with home gaming consoles reaching nearly $6.5 billion, a 6% increase from 2021. Growing interest in the metaverse will contribute to a spike in demand for virtual reality eyewear, with shipment revenues rising from $774 million to nearly $1.3 billion, a 66% increase.
“In 2022, CTA projects connected exercise equipment will experience 17% growth and reach nearly $4.5 billion in shipment revenue,” the association said. “This growth trajectory suggests that health-conscious consumers are finding practicality and convenience in exercising at home, even as gyms and workout classes reopen.”
See also: In-Car Voice Makes Itself Heard at CES
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