Home Blog 2019 NPD Forecasts Growth in Consumer Tech Through 2021
Aug 27, 2019

The Current State of the Tech Market and NPD’s Outlook

Subscribe to our blog

Over the next three years NPD is forecasting strong growth for the consumer electronics industry. Through 2021, we are expecting to see a 3 percent revenue increase, which is notable for a mature market where consumers are not replacing or repurchasing tech items at the same rate they did in prior years.

Some of the categories leading growth more immediately (in the back half of 2019) include, smart entry products (such as Video Doorbells or Smart Locks), true wireless headphones, gaming PCs, Chromebooks, and 75-inch-and-larger TVs. But these near-term opportunities could also include some surprising segments filling consumer needs, like charging cables, tablets and tablet accessories, and even a return of the digital picture frame.

 

Source: The NPD Group, Inc., Future of Tech Report 2019

Key trends to watch:

Big segments continue to dominate

  • Core growth areas, including wireless headphones, smart home products, smart speakers, smartwatches, and gaming accessories and hardware (e.g., desktop and notebook PCs and monitors), are expected to triple in revenue from 2016 to 2021, while tech’s top three categories, notebooks (not including gaming), TVs, and tablets, will grow approximately 5 percent. That said, the revenue total for the top three sellers is $10B more than core growth areas — so the success of these big segments is especially critical to the industry.

Niches can drive growth in the biggest and the smallest categories

  • In a mature market, unit growth is unlikely, since there aren’t a lot of new customers to sell to. The biggest opportunity is to find underserved niches.

New tech starts to impact growth in 2021

  • New and emerging technologies we are starting to see in limited availability today will begin to have an impact by the end of 2021. Products like next-generation foldable screens, 5g, AR and others will have an impact in the not-so-distant future.

Post-2021, the technology industry will undergo radical change

  • What trends drive the inflection points?
    1. The screen: Whether foldable or transparent screens will be everywhere
    2. The intelligent assistant: Software that knows me and can help me with everyday tasks will drive tech purchases
    3. Do-it-for-me devices: Products that are intelligent and can do things for me will interest consumers.
    4. The connection: Inside the home, everything will be connected.
    5. Connectivity: Connectivity to devices, to the cloud, and to the edge will be key.

Stay current in your industry
SUBSCRIBE

Related Content

Tagged: Mobile , Consumer Electronics


NPD Group: U.S. Unlocked Mobile Phone Base Grows to 50.1 Million
NPD Group: U.S. Unlocked Mobile Phone Base Grows to 50.1 Million

While the U.S. unlocked mobile base has grown, 5G adoption and coronavirus impact momentum.

NPD: Voice Assistants, Operating Systems Look Set to Disrupt the Consumer Ecosystem
NPD: Voice Assistants, Operating Systems Look Set to Disrupt the Consumer Ecosystem

While smartphones were once at the center of the connected technology universe, consumers are gravitating towards an integrated ecosystem with assistant at the core.

March Cellular Data Usage Surges in the U.S. Amid COVID-19 Spread, According to NPD
March Cellular Data Usage Surges in the U.S. Amid COVID-19 Spread, According to NPD

These trends coincide with an increase in consumers’ use of the mobile hotspot tethering feature on their smartphones. According to NPD, adoption rate of mobile hotspot usage hit a record 30 percent, up 25 percent year-over-year.

Working and Schooling from Home Prompts Sales Growth for Productivity Tools, Reports NPD
Working and Schooling from Home Prompts Sales Growth for Productivity Tools, Reports NPD

Office supplies and tech products tied to home office solutions, organization, and school from home have seen substantial sales increases. Furthermore, the current circumstances have prompted an off-season, springtime surge in traditional back-to-school supplies purchases.

Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice. | Cookie Settings

Follow Us

© 2020 The NPD Group, Inc.