ARLINGTON, VA —Broader adoption of the Internet of Things (IoT) and enthusiasm for emerging technology will drive the U.S. consumer technology industry to new highs in retail and wholesale revenue as emerging tech categories push the entire industry forward,according to the Consumer Technology Association’s (CTA) semi-annual forecast.

This will increase industry reven8e to $286.6 billion in retail revenues and $224 billion wholesale in 2016, the report says.

The report, U.S. Consumer Technology Sales and Forecasts, says sales of tech products such as wearables, smart home devices, and drones will result in a 1.3 percent increase over last year’s industry revenues.

“We’re in the midst of a critical transition period, as more IoT products offer the anytime/anywhere access and seamless experiences that today’s consumers want and need,” said Gary Shapiro, president and CEO, CTA. “This is a pivotal point in consumer technology history, as emerging tech categories – virtual reality, voice-controlled digital assistants, drones – push the entire industry forward.”

The five largest categories of the tech industry, including smartphones, tablets, LCD televisions, laptops and desktop computers, will collectively contribute $114 billion – or 51 percent – to the tech industry’s revenue this year, and smartphones and TVs will be responsible for most of that growth in 2016. However, in 2017, for the first time in several years, these five categories combined will account for a little less than half of industry revenue.

CTA is the nation’s largest tech trade association, and its consensus forecast reflects U.S. factory sales to dealers for more than 300 tech products.