According to the latest Worldwide Semiannual Connected Consumer Spending Guide from IDC, this will reach US2.06 trillion in 2023, with a five-year CAGR of 5.1%.
Approximately 75% of spending this year will be on traditional technologies, with mobile telco services accounting for more than half of the amount throughout the forecast. This is followed by mobile phones and PCs. While these amount for the majority of spending, the growth rate will be relatively slow at 2.2%.
Emerging tech such as AR/VR headsets, drones and on-demand services will deliver a five-year CAGR of 13.2%, with smart home devices and on-demand services accounting for roughly 90% of emerging technologies spending.
Stacey Soohoo, research manager at IDC’s customer insights and analysis group, said:
“Technology providers are 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.”
Communication and entertainment are expected to be the two largest use cases for consumer tech, accounting for more than 70% of all spending. More than half of that will go to traditional voice and messaging services, while entertainment spending will be dominated by streaming and downloading video along with music and gaming.
Ramon T. Llamas, research director of devices and displays at IDC said: “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.”
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24th May 2020