According the Consumer Electronics Association--the host of CES--global consumer spending on technology is projected to fall by 1 percent in 2014. The company, which specializes in research, education, and networking in the consumer tech industry, made the announcement on Sunday as part of a press day at CES and cited a handful of causes for the expected decline, The Los Angeles Times reported.
Steve Koenig, the director of industry analysis for CEA, said the decline in spending follows 3 percent growth in 2013. According to the article, consumers are expected to spend $1.055 trillion on tech products in 2014, compared to $1.068 trillion last year. A dip in consumer tech purchases will also impact companies reliant on the sale of tech products--such as those that design and sell add-ons and accessories for phones, tablets, and other electronic devices.
Decreased spending on electronics in mature markets such as the U.S. and Western Europe was responsible for some of the overall dip. Additionally, CEA reported that consumers are choosing less-expensive tablets and smartphones.
Koenig said developing markets have been a major driver of consumer tech spending over the past few years but are projected to decline this year, according to The Los Angeles Times. Sales in developing markets accounted for 20 percent of growth in tech spending in 2011 but are only expected to account for 4 percent of growth in 2014.
Tablets and smartphones, however, will continue to be big sources of revenue in the new year. Koenig said that they are projected to account for 43 percent of consumer tech spending in 2014.