Consumer Tech Growth Likely to Slow, After Pandemic-Fueled Surge: NPD
Consumer technology sales will decline 5% this year, after a strong 2021 when sales rose 9% year on year to $127 billion, said NPD Thursday. The researcher expects continued declines of 4% in 2023 and 1% in 2024. Near term,…
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NPD expects “slowing demand from the extraordinary rates we have been seeing over the last two years” due to COVID-19 pandemic lifestyle changes, said analyst Stephen Baker. A larger, younger installed base for many tech devices “will inevitably slow consumer needs in the immediate future for technology updates and upgrades.” Average selling prices will continue to rise for the fifth consecutive year, NPD said, topping $72, up $16 from 2018, it said. Component shortages and shipping costs in 2021 led to ASP increases, largely felt in the second half. Baker expects prices to remain stable at the higher level due to strong demand for premium products and “softening consumer needs for lower value device categories." Smart home will be an area of growth for the industry, NPD forecast, with 6% unit growth this year and a 2% revenue gain to $4.1 billion. Security cameras are seen growing 2%, smart doorbells 13%, smart locks 8% and smart power 4%, it said. Stand-alone VR headsets and 65-inch and larger TVs will benefit from consumers’ focus on entertainment through 2024, said analyst Ben Arnold.