The Consumer Technology Association’s 2025 Tech Trends report projects record-breaking industry revenue of $537 billion, with artificial intelligence driving significant growth across consumer technology sectors.
Market outlook and projections: The consumer technology industry is poised for substantial growth in 2025, with retail revenue expected to reach $537 billion, up from $520 billion in 2024.
- Hardware sales are forecasted to generate $353 billion, while software revenue is expected to reach $184 billion
- Growth is being driven by increased consumer adoption of AI-enabled technologies and smart home innovations
AI adoption metrics: Consumer interaction with artificial intelligence has reached unprecedented levels, particularly in retail and workplace environments.
- 64% of U.S. consumers now utilize AI tools for online shopping experiences
- Personalized AI recommendations are driving purchase decisions, with consumers 40% more likely to buy products with AI-enhanced targeting
- An overwhelming 93% of U.S. adults report familiarity with generative AI technology
- Workplace AI adoption has surged, with 61% of employees now using AI tools in their professional roles
Smart home and mobility innovations: Major technology companies are advancing connected home solutions while the transportation sector undergoes significant transformation.
- Samsung, Narwal, Tuya, and Pawport are introducing new smart home technologies that enhance home automation and connectivity
- The mobility sector is experiencing shifts in three key areas: electrification, connectivity, and autonomous capabilities
Health technology and aging: Consumer attitudes toward technology for health and aging are showing strong positive trends.
- 80% of U.S. consumers now view smart home technology as a solution for aging-in-place
- More than half (52%) of consumers own at least one product from the top 10 perceived age-tech categories
- Wearable technology continues to gain traction as consumers increasingly focus on health monitoring and wellness management
Looking ahead: While AI adoption metrics suggest mainstream acceptance of artificial intelligence, the projected revenue split between hardware and software indicates that physical devices still dominate consumer technology spending, pointing to potential opportunities for increased software and services revenue in future years.
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