Retail Observer

FEBRUARY 2018 RETAILOBSERVER.COM 57 40.8 million units in 2018 (41 percent increase over 2017), earning $4.5 billion (34 percent increase). • Virtual Reality (VR): Popularity among gamers and an increasingly competitive market continue to drive growth for VR/AR headsets and eyewear, with unit shipments projected to grow to 4.9 million units this year (25 percent increase) tallying $1.2 billion in revenues (18 percent increase). • Drones: Total drone sales are expected to reach record highs of 3.7 million units in 2018 (20 percent increase) earning $1.2 billion in revenue (17 percent increase). CTA's forecast also delineates U.S. drone sales for units below and above 250 grams, the FAA's division for mandatory drone registration. Drones below 250 grams are expected to reach just over 2.2 million units this year, while drones above 250 grams will reach 1.5 million units shipped. • Wearables: The total health, fitness and sports tech market - including fitness activity trackers, other health and fitness devices, hearables, over-the-counter hearing devices, smart- watches and, for the first time, sports tech (such as a smart basketballs or baseball bats) — is expected to reach sales of 49.3 million units in 2018 (four percent increase) and earn $ 6.4 billion (one percent increase). "Consumers are rapidly adopting new, emerging technology products — with voice-activated smart speakers as the stand- out of 2017 and 2018 — sparking growth in smart home devices, as voice interaction adds a new level of convenience and excitement to our lives," said Brian Markwalter, senior vice president of research and standards, CTA. "At the same time, core categories such as smartphones, laptops and TVs, continue to surpass expectations. 2018 will prove to be a milestone year for TVs, especially as LCD 4K UHD TVs make up half of all TVs sold in 2018." MATURING TECHNOLOGIES CONTINUING The top five revenue categories will contribute just over half of total wholesale industry revenue (51 percent) in 2018. • Smartphones: Following the introduction of new flagship models from major manufacturers in 2017, smartphones will continue to anchor the industry and see slight growth in 2018. Unit volume will reach 189 million smartphones (two percent increase) shipping in 2018, with revenues expected to reach $ 62.9 billion (three percent increase). • Laptops: In 2018, the commercial and consumer laptop market will sell 50.1 million units, up three percent over last year, and earn $28.4 billion in revenue. Convertible models remain a high-growth area within computing. • Televisions: Performing better than expected in 2017, unit sales of total digital displays in 2018 are projected to reach 44.2 million units (two percent increase) and $22.1 billion in revenue (two percent increase). Future category growth will be driven by next gen features. • 4K Ultra High-Definition (4K UHD): For the first time, 4K UHD TVs will make up half of all total digital displays sold in 2018, with unit sales forecast to hit 22 million units (27 percent increase) generating $15.9 billion in revenue (14 percent increase). • Automotive Electronics: Factory-installed automotive tech- nology, from driver-assist features to entertainment systems, is projected to contribute $15.9 billion in revenue (5.9 percent increase)— the result of strong automotive sales, propelled by a rising tide of tech, from sensors and artificial intelligence to safety and infotainment systems. • Tablets: After tremendous adoption in recent years, some tablet sales have been cannibalized by convertible, 2-in-1 laptops as standalone tablet adoption has leveled off and replacement cycles have slowed. Tablet sales will decline in 2018. CTA expects sales of 45.6 million units (12 percent decrease) and revenues of $12.5 billion (13 percent decrease). CTA publishes the U.S. Consumer Technology Sales and Forecasts twice a year, in January and July, reporting U.S. factory sales-to-dealers. It was designed and formulated by CTA, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer technology industry. Multi-year projections cannot account for unpredictable factors such as changes in trade laws, interest rates and federal policy. Visit www.CTA.tech/salesandforecasts for more information. RO

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