Consumer spending on tech is rising. It’s forecast to reach $1.69 trillion in 2019, and one of the interesting details within the wider trend is huge growth in the smart home device and wearables sectors.
New tech categories are growing fast. On-demand services, robotic systems, smart home devices and wearables are set for a five-year Compound Annual Growth Rate (CAGR) of 13.2%, according to the Worldwide Semiannual Connected Consumer Spending Guide from IDC.
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The US remains the largest market, with consumer tech spending forecasts indicating a $419 billion spend when 2019 draws to a close. That would be up 5.5% on 2018.
China’s just behind, with a $328 billion spend, and Western Europe follows on $277 billion. China is displaying the fastest growth, however, with a five-year CAGR of 6.8%.
Stacey Soohoo, an IDC research manager, pointed to the fact that technology is being introduced into more and more areas of people’s everyday lives.
She said: “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.
“Meanwhile, companies are exploring new opportunities to interact with their consumers, finding the right mix of personalisation and functionality to provide frictionless experiences.”
Smart lighting has seen impressive growth within the smart home tech sector. One of our favourite smart lighting systems is Phillips Hue. A flexible smart lighting system, it allows users to monitor their electricity usage and configure lighting routines (for example, your lights could be coming on just as you get home from work, or going on and off while your on holiday as a security feature).
The researcher also acknowledged the growing trend of ‘wearables’ in consumer tech and their ability to marry the physical and the digital, as well as the growth of on-demand streaming.
“Technology providers are also blending digital and physical experiences,” she added. “This includes an evolving area and new addition to IDC’s… Consumer Spending Guide.
“On-demand services enable access to networks, marketplaces, content, and other resources in the form of subscription-based services and includes services like Netflix, Hulu, Spotify and others. As connected consumers juggle multiple services across their devices, it is essential for technology providers to understand how the adoption of these various technologies and services will impact their consumer’s experience in the future.”
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It will be interesting to see how these new areas of consumer tech spending develop. It doesn’t seem long ago that the idea of wearable tech sounded gimmicky, now it’s a huge industry set for more growth.