Bengaluru, NFAPost: As per IDC report on Worldwide Semiannual Connected Consumer Spending Guide, global consumer spending on technology is forecast to reach $1.69 trillion in 2019, an increase of 5.3% over 2018. The report states that consumer purchases of traditional and emerging technologies will remain strong over the 2019-2023 forecast period, reaching $2.06 trillion in 2023 with a five-year compound annual growth rate (CAGR) of 5.1%.
While around three quarters of all consumer technology spending in 2019 will be for traditional technologies, the IDC findings states that mobile telecom services (voice and data) will account for more than half of this amount throughout the forecast. Mobile phones and personal computing devices will contribute for the major chunk of activities. Spending growth for traditional technologies will be relatively slow with a combined annual growth rate (CAGR) of 2.2% over the forecast period.
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%. This growth will enable emerging technologies to capture nearly a third of consumer spending by 2023. Smart home devices and on-demand services will account for roughly 90% of emerging technologies spending.
Commenting on the development, Idc Customer Insights and Analysis group research manager Stacey Soohoo stated that 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.
The IDC official pointed that worldwide companies are going ahead with its plans to interact with their consumers so that they can find the exact mid of personalisation and functionality to provide frictionless experience.
“Technology providers are also blending digital and physical experiences, and this includes an evolving area and new addition to IDC’s Worldwide Semiannual Connected Consumer Spending Guide: on-demand services. 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.”
The report states that communication and entertainment will be the two largest use case categories for consumer technology. It will take away over 70% of all spending throughout the forecast. More than half of all communication spending will go toward traditional voice and messaging services. Entertainment spending will be dominated by watching or downloading TV, videos and movies, as well as listening to music and downloading and playing online games. The use cases that will see the fastest spending growth over the forecast period are augmented reality games (136.3% CAGR) and virtual reality video/feature viewing (47.3% CAGR).
IDC Research Director for Devices and Displays Ramon T Llamas states that consumers are connected through a myriad of devices is a given, but IDC’s Connected Consumer Spending Guide reveals what kinds of applications and experiences they are spending their money on while using a device.
“Communication and entertainment have long been the mainstays among consumers and will hold the leading positions throughout the forecast. Beyond them is a long list of emerging use cases whose spend will outpace the rest of the market, including augmented reality, virtual reality, and home automation. These highlight the direction that consumers are going and players throughout the ecosystem should plan ahead to capture this expected rise in demand.”
On the geographical spend, the study states that the United States will be the largest market with consumer technology spending forecast to reach $412 billion in 2019, registering a growth of 5.5% compared with 2018. While China will be the second largest market in 2019 with spending expected to reach $328 billion, the report finds that Western Europe will follow with a total spend $227 billion. Mobile telecom services and mobile phones will be the two largest categories in all three regions. China will also see the fastest spending growth with a five-year CAGR of 6.8%.
The IDC report on Worldwide Semiannual Connected Consumer Spending Guide takes into account consumer spending for 22 technologies in around ten categories across nine geographic regions. The guide also provides spending details for 23 consumer use cases. Unlike any other research in the industry, the Connected Consumer Spending Guide was designed to help business and IT decision makers to better understand the scope and direction of consumer investments in technology over the next five years.
IDC’s Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
he Worldwide Connected Consumer Spending Guide examines the connected consumer opportunity from a use case, technology, industry, and geography perspective. This comprehensive database delivered via IDC’s Customer Insights query tool allows the user to easily extract meaningful information about the connected consumer technology market by viewing data trends and relationships and making data comparisons.
- 9 regions: USA, Canada, Japan, Western Europe, Central and Eastern Europe, Middle East and Africa, Latin America, PRC, and Asia/Pacific
- 3 technology groups with 22 technology categories: Hardware (augmented reality headset, clothing, consumer drone, consumer robot, desktop, earwear, modular, notebook, smart speaker, smartphone, tablet, virtual reality headset, watch, wristband, home security/monitoring, lighting, thermostat, video entertainment, and others), telecom services (mobile data and mobile voice), services (on-demand services)
- 15 use cases, including: Aerial photography and video, augmented reality games, communication, education, entertainment, home automation, household cleaning and maintenance, manage personal life, personal assistance, personal wellness and health, staying informed, use for work/school, video/feature viewing (VR), virtual reality games, and others
- 2 innovation types: Emerging and traditional
This spending guide is delivered on a semiannual basis via a web-based interface for online querying and downloads. For a complete delivery schedule, please contact an IDC sales representative. The following are the deliverables for this spending guide:
- Annual five-year forecasts by region, technology group, technology category, sector, industry, use case, and innovation type delivered twice a year