Shutterstock image

CTA: Streaming, SVOD Key U.S. Consumer Technology Market Drivers

Erik Gruenwedel

New data from the Consumer Technology Association finds that software and streaming services will account for 31% ($151 billion) of the $487 billion U.S. consumer technology market in 2023. The sector’s $1.4 billion rise from 2022 is driven by a broadening portfolio of subscription services across video, audio and video games.

Based on CTA’s U.S. Consumer Technology One-Year Industry Forecast, this report reveals how software and services are evolving traditional views of how content is consumed. It previews how artificial intelligence (AI), internet of things (IoT), cloud services and connectivity create new possibilities as designers leverage new tools to deliver compelling products. The category will contribute $1 billion in new spending to the industry this year, balancing flat demand for hardware.

“The rise of … gaming and streaming offerings add vibrancy and choice to the consumer technology industry, offering entertainment on the go,” said Rick Kowalski, senior director, business intelligence at CTA, in a statement. “Hardware remains important, but services are an essential part of the customer experience. They are expanding the possibilities of what we can do with our devices and shaping the future of entertainment.”

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The top five software and service growth areas in 2023 are:

• video game subscriptions, which should experience 10% growth as gamers embrace cloud gaming, subscription services offer more games, and video streaming services enter the fray to compete with console manufacturers;
• fitness subscription services, which should increase 5% after consumers flocked to connected fitness equipment during the pandemic and discovered the benefits of working out at home;
• live video streaming, which should increase 4%;
• subscription and other video streaming (Last year marked the start of a new era of subscription video-on-demand (SVOD) as costs and churn increased across the streaming video space. Streaming providers have seen subscriber growth thanks to ad-supported VOD offerings. Over-the-top (OTT) and SVOD are likely to unify as traditional SVOD players look to consolidate or bundle offerings, adding sports and live programming to draw subscribers.); and
• home security subscription services, which are eyeing a 4% increase in revenue in 2023 as security products are among the most desired for those who plan to purchase smart home tech in the coming year.

Related Posts

• Domestic SVOD Market to Reach 125 Million Subs in 2018

  The combined pay-TV and over-the-top video markets remain growing, with total revenue projected to top $140 billion in 2018, according to new data from Futuresource Consulting. This, despite a continuously evolving and challenging media and consumer landscape. London-based Futuresource said…

• Consumer SVOD Mobile App Spending Rose 77% in 2017

  Consumer spending on the top 10 mobile apps for subscription video-on-demand services via the App Store and Google Play rose 77% in 2017 to about $781 million compared to 2016, according to new data from Sensor Tower. Revenue grew almost…

• Netflix Dominates Consumer Interest in Crowded SVOD Market

  Netflix continues to resonate among consumers despite an influx of new subscription streaming video services featuring both paid and free, ad-based content. New data from JustWatch, an international streaming content guide with more than 20 million users per month across…

• German SVOD Market Growing

  Among Western European countries, Germany and France have been slow to adopt subscription streaming video, including Netflix and Amazon Prime Video. That appears to be changing in Germany. At the end of 2017, 18% of all German households were subscribing…