- Mobile telecom services will account for more than half of this amount, followed by mobile phones and personal computing devices
- Smart home devices and on-demand services will account for roughly 90 per cent of emerging technologies spending
- The US will be the largest geographic market with consumer technology spending forecast to reach $412 billion in 2019
- China will be the second-largest market in 2019 with spending expected to reach $328 billion
According to the latest Worldwide Semiannual Connected Consumer Spending Guide from International Data Corporation (IDC), consumer purchases of traditional and emerging technologies will remain strong over the 2019-2023 forecast period and is expected to reach $2.06 trillion in 2023 with a five-year compound annual growth rate (CAGR) of 5.1 per cent. Consumer spending on technology is also set to reach $1.69 trillion in 2019, an increase of 5.3 per cent over 2018.
The key findings
The report noted that mobile telecom services will account for more than half of this amount, followed by mobile phones and personal computing devices. Spending growth for traditional technologies will be relatively slow with a CAGR of 2.2 per cent over the forecast period.
It also highlighted that emerging technologies, including AR/VR headsets, drones, on-demand services, robotic systems, smart home devices, and wearables, will deliver strong growth with a five-year CAGR of 13.2 per cent . Moreover, smart home devices and on-demand services will account for roughly 90 per cent of emerging technologies spending.
“Advances in technology continue to drive what ‘convenience’ means today and in the future for connected consumers. Ranging from consumer robots for household cleaning and maintenance to smart lighting or home security/monitoring systems, connected consumers are adopting these solutions in their homes and everyday lives as they go through their own digital transformation,” said Stacey Soohoo, research manager with IDC’s Customer Insights & Analysis group.
He added, “Companies are exploring new opportunities to interact with their consumers, finding the right mix of personalization and functionality to provide a frictionless experience.”
The report mentioned that the US will be the largest geographic market with consumer technology spending forecast to reach $412 billion in 2019. China will be the second-largest market in 2019 with spending expected to reach $328 billion followed by Western Europe at $227 billion. Mobile telecom services and mobile phones will be the two largest categories in all three regions.
