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 Blog Posts

Tagged: Mobile , Consumer Electronics


5G, Gaming and a Samsung Leadership Position
5G, Gaming and a Samsung Leadership Position

NPD Connected Intelligence President, Eddie Hold, takes a look at the announcements made during this week’s Samsung event including new devices, as well as 5G and gaming

2020: Mobile Predictions
2020: Mobile Predictions

The new decade promises some fundamental shifts for the mobile market, offering both opportunities and threats to the status quo. See thoughts from NPD’s Connected Intelligence President, Eddie Hold, on some of the most important topics in this piece.

The New Foldable Motorola razr Creates a Conflict Between the Heart and Wallet
The New Foldable Motorola razr Creates a Conflict Between the Heart and Wallet

NPD’s Brad Akyuz shares his thoughts on the new Motorola razr, which he says masters the foldable form factor, but is limited in some technical specs.

VSCO Girls: How A Consumer Group Born on Social Media Has Cross-Industry Implications
VSCO Girls: How A Consumer Group Born on Social Media Has Cross-Industry Implications

The VSCO girl subculture took hold this summer and has created opportunities for products and brands in a variety of industries including apparel, beauty, fashion accessories, footwear, sporting goods and technology. We asked our industry analysts to weigh in regarding the implications and opportunities for their industries.

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.