CTA Forecast: U.S. Spending on Consumer Technology Software and Services Will Rise 3.7% in 2024

A new forecast from the Consumer Technology Association (CTA)® research team shows consumer spending on software and services will rise 3.7% to $157 billion in 2024. 

By the end of 2023, consumer spending in these categories will amount to $152 billion, up 1.7% over 2022. Software and services make up nearly one-third (31%) of total U.S. consumer technology revenues. Services see slower growth this year due to economic pressures, but will pick up again in 2024, fueled by rising consumer interest in gaming and video streaming services.

“The U.S. software and services industry is undergoing a transformation marked by growing demand for new content and digital experiences,” said Rick Kowalski, Sr. Director of Business Intelligence at CTA. “From AI-driven applications to health-focused digital tools, the software and services sector is elevating the consumer technology experience.”
 

Findings Across the Industry:

• Gaming subscriptions are the fastest growing part of the gaming sector, expected to grow 12% to $3.5 billion in 2024.
• 41% of U.S. adults have paid for some type of video game software or service over the past 12 months.
• 92% of U.S. adults use subscription video services (free or paid).  
• 53% of U.S. adults use an audio subscription service.
• Revenue from fitness services will grow 20% to $900 million in 2024.

Methodology:

CTA employs a consensus methodology to compile the figures in the 2023 U.S. Consumer Technology Software & Services Forecast (October 2023). As part of this process, CTA gathers estimates of expected annual total industry revenues from manufacturers, retailers, industry analysts, publications and other sources. These estimates are then averaged and adjusted based on additional qualitative inputs, year-to-date trends, CTA consumer research and historical growth rates.

The report includes U.S. market projections and consumer behavior across the following software and services segments: apps (pay-to-download), extended warranties, gaming software and services, health and fitness services, home security subscription services, subscription audio streaming services and subscription video streaming services.

About Consumer Technology Association:
As North America’s largest technology trade association, CTA® is the tech sector. Our members are the world’s leading innovators – from startups to global brands – helping support more than 18 million American jobs. CTA owns and produces CES® – the most powerful tech event in the world. Find us at CTA.tech. Follow us @CTAtech.