Canada Digital Trends Report 2023: Hardware

Overview

• What you need to know
• Key issues covered in this Report

Executive Summary

• Top takeaways
• Consumer Trends
• It’s looking up for smart home devices
  • Figure 1: Tech hardware ownership, 2022
• Dads are the kings of the home entertainment space
  • Figure 2: Home entertainment device purchase interest (% any interest), by parental status, 2022
• Feature creep has made its way to smartwatches but younger consumers are here for it
  • Figure 3: “I would be interested in a device that monitors my sleep habits to help me improve my quality of rest” (% agree), by age, 2022
• Competitive Strategies
• Cutting-edge VR devices poised to enter the market in 2023
  • Figure 4: PlayStation Instagram post, December 2022
• LG continues to invest in AI to deliver smart home solutions to consumers
  • Figure 5: LG AI Instagram post, September 2022
• TELUS merges security and fun to create impactful experiences for consumers
  • Figure 6: TELUS Instagram post, December 2022
• Market Predictions
• Inflation poised to drain the purchasing power of Canadian households
• Tech hardware isn’t going anywhere, but brands may need to work a little harder to generate sales
  • Figure 7: Category outlook, digital trends: hardware, 2023-28
• Opportunities
• When marketing to women, brands need to work to convert interest into ownership
• There is a huge hole in the market for smart exercise equipment

The Market – By the Numbers

• Investor and consumer confidence low as stocks plummet, despite increases in revenue

Market Factors

• Economic factors are still very top of mind for consumers
• As the cost of basic goods rises, Canadians are tightening their belts
  • Figure 8: Canadian Consumer Price Index, 2020-23
• Household savings have risen slightly from a 5% plateau
  • Figure 9: Canadian household savings rate, Q1 2019-Q4 2022
• Canada’s ageing population will likely put pressure on younger Canadians
  • Figure 10: Canadian population age projections, yearly, 2000-40
• Diversity among future generations is projected to increase
  • Figure 11: Proportion of visible minority in Canada, 1981-2040

Competitive Strategies

• VR brands battle it out on virtual battlefields in 2023
  • Figure 12: PlayStation post, December 2022
• LG invites you to ‘ThinQ’ about innovation
  • Figure 13: LG Facebook, February 2022
• TELUS embraces the magic of the holiday season…
  • Figure 14: TELUS Instagram post, December 2022
• …while McCain Foods helps consumers avoid too much “magic” this holiday season
• When buying luxury tech devices, tailoring or customization can go a long way
  • Figure 15: Work Louder Instagram post, January 2023
• The future of AI is bright – but Canadians still aren’t convinced
  • Figure 16: Microsoft Instagram post, February 2023

Fast Facts: Digital Trends – Hardware

Hardware Ownership

• Nearly all Canadians own a mobile device
  • Figure 17: Mobile device ownership, 2022
• Smart home devices have found a sizeable niche
  • Figure 18: Tech hardware ownership, 2022
• Consumers are slower to adopt newer home entertainment devices
  • Figure 19: Sony Instagram post, February 2023
• As expected, younger consumers have higher tech ownership rates
• Over half of Canadians own at least one smart home device
  • Figure 20: Smart home device ownership, by age, 2022
• Fitness wearables are being driven by women
  • Figure 21: Fitness device ownership, by age, 2022
• • Figure 22: Fitbit Instagram post, July 2022
• Young women have embraced streaming video media, while young men turn to the technology for gaming
  • Figure 23: Streaming device ownership, by age, 2022
• Younger consumers are early adopters of Wi-Fi, 8K and AR/VR technology
  • Figure 24: Ownership of other tech devices, by age, 2022
• South Asian Canadians are a key ownership niche
  • Figure 25: Tech hardware ownership (select), Chinese and South Asians vs overall, 2022

Home Entertainment Devices: Purchase Interest

• Consumers are generally uninterested in non-console gaming devices
  • Figure 26: Home entertainment device purchase interest, 2022
• Men are more interested in home entertainment hardware
  • Figure 27: Home entertainment device purchase interest (% any interest), by age, 2022
• Fathers are prime targets for home entertainment technology
  • Figure 28: Home entertainment device purchase interest (% any interest), by parental status, 2022
• • Figure 29: Nokia Twitter post, December 2022
• Remember to promote diversity and inclusion in marketing
  • Figure 30: Home entertainment device interest, by race, 2022
• • Figure 31: Alienware Instagram post, December 2022

Home Entertainment Devices: Attitudes and Priorities

• Consumers prioritize sound and video quality for home entertainment
  • Figure 32: Home entertainment priorities, 2022
• • Figure 33: Vizio Instagram post, December 2022
• Younger women shouldn’t be discounted when promoting tech features
• Device sound fidelity can be positioned to aid with hearing loss for older men
  • Figure 34: Vizio Facebook post, December 2022
• AR/VR devices and gaming are prioritized by younger consumers
  • Figure 35: Home entertainment priorities (any rank), by age, 2022
• Parents are prioritizing entertainment over quality
  • Figure 36: Home entertainment priorities, by parental status, 2022
• • Figure 37: Vizio Instagram post, December 2022
• Consumers still need to be convinced of the value of 8K TVs and AR/VR devices
  • Figure 38: Samsung Instagram post, June 2022
• • Figure 39: Home entertainment attitudes (% agree), 2022
• Younger consumers are looking for access to social video on their main screens
  • Figure 40: Home entertainment attitudes (% agree), by age, 2022
• • Figure 41: Vizio Instagram post, June 2022

Spotlight on Smart Security

• When thinking of smart homes, consumers point to security
  • Figure 42: Interest in help securing the home, by age and gender, 2022
• • Figure 43: TELUS | Testimonials from SmartHome Security Customers: Smoke Detector, January 2022
  • Figure 44: TELUS Carbon Monoxide Instagram post, March 2022
• Asian Canadians are looking for security when getting settled
  • Figure 45: Interest in help securing the home, Asian consumers vs overall and location of birth, 2022
• Desire for securing the home is fuelling interest in purchasing smart home devices
  • Figure 46: Interest in purchasing smart security devices (% any interest), by age, 2022
• However, the security of the devices remains a barrier for adoption, ironically
  • Figure 47: Smart home security concerns (% agree), by age and gender, 2022
• • Figure 48: Turn on Advanced Security for Rogers Ignite Internet Using the Ignite Wi-Fi Hub App, January 2022
• Despite concerns, consumers generally feel that smart home tech has net positive security benefits
  • Figure 49: Smart home security technology makes protecting my home easier (% agree), by age, 2022

Smart Home Devices: Who’s Interested?

• Consumers are still lukewarm on many smart home devices
  • Figure 50: Interest in purchasing smart home tech, 2022
• Young consumers were significantly more likely to have an interest in smart home devices
  • Figure 51: Interest in purchasing smart home tech (% any interest), by age, 2022
• • Figure 52: Interest in purchasing smart home tech (% any interest), by age and gender, 2022
• Dads show a higher interest in some smart home tech, but parents in general are intrigued
  • Figure 53: Interest in purchasing smart home tech (% any interest), by parental status, 2022
• • Figure 54: iRobot Instagram post, March 2022
• Brands can leverage high interest in Black and South Asian communities
  • Figure 55: Interest in purchasing smart home tech (% net interest), by race, 2022
• • Figure 56: Nokia Instagram post, May 2022

Smart Home Devices: Purchase Drivers and Barriers

• Consumers want convenience from their smart home devices
  • Figure 57: Interest in smart home device tasks and features, 2022
• • Figure 58: LG Canada Instagram post, September 2022
• Moms are interested in help, but this hasn’t translated into purchase interest
  • Figure 59: Interest in smart home devices that help with cooking and cleaning, by parental status, 2022
• • Figure 60: Instant Pot Instagram post, August 2022
• Perceptions of cost, capability, and interconnectivity remain major barriers to increased adoption
  • Figure 61: Barriers to smart home device ownership (% agree), 2022
• • Figure 62: Introducing the new Roomba Combo™ j7+ Robot Vacuum and Mop, September 2022
• • Figure 63: LG Canada Instagram post, September 2022

Fitness and Health Tech

• Consumers generally aren’t looking to smart devices to help with fitness
  • Figure 64: Interest in smart home device tasks and features, 2022
• • Figure 65: Introducing Apple Watch Ultra | Apple, September 2022
• Gamifying sleep can be a great way to generate interest in smartwatches for younger consumers
  • Figure 66: “I would be interested in a device that monitors my sleep habits to help me improve my quality of rest” (% agree), by age, 2022
• • Figure 67: Fitbit Instagram post, October 2022
• Smartwatches are more attainable fitness devices for most consumers
  • Figure 68: Fitness device purchase interest, 2022
• • Figure 69: Fitness device purchase interest, by age and gender, 2022
• • Figure 70: Fitbit Instagram post, September 2022
• Brands should focus on quality over cost when promoting fitness devices
  • Figure 71: Fitness device purchase interest, by household income, 2022
• • Figure 72: Tonal Twitter post, September 2022
• Smart exercise equipment owners should be a target demo for smartwatch/fitness tracker brands
  • Figure 73: Tech hardware ownership, those who own smart exercise equipment vs overall, 2022
• Half of consumers would rather use smart equipment at home than go to a gym
  • Figure 74: “I would rather go to a gym than use a smart exercise device” (% agree), by age, 2022
• • Figure 75: Tonal Twitter post, November 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations
• Terms