2021
9
US COVID-19 Impact on Technology: One Year Later Market Report 2021
2021-07-02T04:11:23+01:00
OX1045127
3695
139962
[{"name":"Technology","url":"https:\/\/store.mintel.com\/industries\/technology"}]
Report
en_GB
“The pandemic has impacted almost every facet of consumers’ lives, from their personal finances to their social lives, as well as priorities and behaviors. Technology has been at the forefront…

US COVID-19 Impact on Technology: One Year Later Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“The pandemic has impacted almost every facet of consumers’ lives, from their personal finances to their social lives, as well as priorities and behaviors. Technology has been at the forefront of consumers’ responses to pandemic conditions, whether using technology to work from home, stay in touch with friends or keep entertained at home. COVID-19 accelerated adoption of new digital behaviors like curbside pickup and video chatting, and consumers will continue to integrate even more new tech and services that offer value and convenience in a post-pandemic landscape.”

– Buddy Lo, Senior Technology and Consumer Electronics Analyst

This report will look at the following areas:

  • General impacts of COVID-19 across lifestyles, the economy and household spending
  • Technology hardware and communications segment performance and forecasts
  • How COVID-19 accelerated the adoptions of new technologies and increased consumer reliance on technology
  • Opportunities for tech brands to reach digital consumers based on their wants and needs, as well as attitudes toward technology

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
            • Economic and other assumptions
              • COVID-19: US context
              • Executive Summary

                  • Top takeaways
                    • Market overview
                      • Impact of COVID-19 on technology and communication
                        • Figure 1: Short-, medium- and long-term impact of COVID-19 on technology hardware and communication services, June 2021
                      • Opportunities and challenges
                        • Remote work will continue to drive household tech purchases
                          • Figure 2: Impact of COVID-19 on technology, by work commute, February 2021
                        • Computer chip shortage will put pressure on the tech category to meet demand
                          • Consumers interested in new tech products for a variety of categories
                            • Figure 3: Categories for new technology, February 2021
                          • Shared spaces increase demand for personal audio products
                            • Figure 4: Hearable device ownership, by household size, February 2021
                        • COVID-19 Pandemic Overview

                            • Figure 5: Daily trends in number of COVID-19 cases in the United States reported to CDC, Jan. 22, 2020-May 19, 2021
                          • January-March 2020: discovery and first wave
                            • Figure 6: Number of COVID-19 cases in the United States reported to CDC, by region, Jan. 22, 2020-May 19, 2021
                          • April-July 2020: uneven lockdown and uneven impact as cases climb
                            • Figure 7: COVID-19 cases in the United States reported to CDC, by age group, Jan. 22, 2020-May 19, 2021
                            • Figure 8: COVID-19 deaths in the United States Reported to CDC, by age group, Jan. 22, 2020-May 19, 2021
                            • Figure 9: COVID-19 cases in the United States reported to CDC, by race/ethnicity, Jan. 22, 2020-May 19, 2021
                            • Figure 10: COVID-19 deaths in the United States reported to CDC, by race/ethnicity, Jan. 22, 2020-May 19, 2021
                            • Figure 11: COVID-19 cumulative case rate per 100,000 population in United States, by percentage of county population in poverty, January 23, 2021-May 18, 2021
                            • Figure 12: COVID-19 cumulative death rate per 100,000 population in United States, by percentage of county population in poverty, January 23, 2021-May 18, 2021
                          • August 2020-January 2021: new leadership, a new variant and first vaccinations
                              • Figure 13: COVID-19 vaccinations in the United States, Dec. 13, 2020-May 20, 2021
                            • February 2021 onward: double masking and the road to reopening
                              • Figure 14: Projected dates for vaccination coverage, as of May 19, 2021
                          • Impact of COVID-19 on the Economy

                            • A record drop and bounce back in economic activity
                                • Figure 15: US GDP percentage change from previous period, not seasonally adjusted, 2007-25 (forecast)
                              • Employment plummets – Recovers to 2016 levels – Tech sector resilient
                                • Figure 16: Unemployment and underemployment rate, January 2007-April 2021
                                • Figure 17: Initial jobless claims, Jan 13, 2007-May 15, 2021
                                • Figure 18: Employment levels, by industry – Information, financial activities, professional and business services sectors, Jan 2007-April 2021
                              • Consumer spending and confidence are catching up
                                • Figure 19: Real personal consumption expenditures and change in personal consumption expenditures, Q1 2007-Q1 2021
                                • Figure 20: Personal saving rate, monthly, January 2007-March 2021
                                • Figure 21: Consumer Sentiment Index, January 2007-April 2021
                              • Federal Reserve promises to keep interest rates “near zero”
                                • Figure 22: Effective Federal Funds Rate, Jan 1990-April 2021
                              • Inflation concerns grow as economic growth accelerates
                                • Figure 23: Consumer Price Index change from previous period, January 2007-April 2021
                                • Figure 24: US gasoline and diesel retail prices, January 2007-April 2021
                              • Global computer chip shortage ripples throughout the economy
                              • Impact of COVID-19 on Household Finances and Spending Priorities

                                • Financial wellbeing is improving, despite only half of Americans thinking their financial situations are healthy
                                  • Figure 25: Financial health, by household income, April 29-May 13, 2021
                                • Stimulus relief has been a lifeline for many
                                  • Figure 26: Financial situation, by household income, April 29-May 13, 2021
                                • Essential goods remain priorities…
                                  • Figure 27: Coronavirus spending habits, March 31-April 17, 2021
                                • …but discretionary categories show signs of rebirth
                                  • Figure 28: Coronavirus spending habits – Higher priority, April 16-24, 2020, March 31-April 17, 2021
                                • Saving remains a focus, but consumers ready to make exceptions
                                  • Figure 29: Spending behaviors – Past three months and future plans, May 2021
                                  • Figure 30: Spending behaviors – Past three months, May 2020-May 2021
                              • Overall Consumer Mind-set

                                • Fear is subsiding one year after pandemic lockdowns
                                    • Figure 31: Share of adults worried about coronavirus exposure, March 2020-May 2021
                                  • Lifestyle concerns follow suit
                                      • Figure 32: Share of adults worried about coronavirus impact on lifestyle, March 2020-May 2021
                                    • The pandemic experience inspired reflection
                                      • Family first
                                        • New view of health and wellness
                                            • Figure 33: Post COVID-19 priority changes, May 2021
                                          • Masks still provide a level of comfort despite new guidelines
                                              • Figure 34: Post COVID-19 priority changes, May 2021
                                          • The Technology Market – Key Takeaways

                                            • Tech and communication spending to continue growing in wake of pandemic
                                              • Tech is even more important now than during the Great Recession
                                                • Hardware spending hits double digit growth twice in as many years
                                                • Technology Hardware and Communication Services Market Size and Forecast

                                                  • Tech and communication spending shrugs off COVID-19
                                                    • Figure 35: Total US sales and fan chart forecast of technology hardware and communication services, at current prices, 2015-25
                                                    • Figure 36: Total US sales and forecast of technology hardware and communication services, at current prices, 2015-25
                                                  • Learnings from the last recession
                                                  • Segment Performance

                                                    • Hardware sales benefit from shift to remote work and schooling
                                                      • Figure 37: Total US sales and fan chart forecast of technology hardware, at current prices, 2015-25
                                                      • Figure 38: Total US sales and forecast of technology hardware, at current prices, 2015-25
                                                    • Communication spending remained stable in 2020
                                                      • Figure 39: Total US sales and fan chart forecast of communication services, at current prices, 2015-25
                                                      • Figure 40: Total US sales and forecast of communication services, at current prices, 2015-25
                                                  • COVID-19 Scenario Performance

                                                    • Mintel’s approach to predicting the impact of COVID-19
                                                      • Fundamental differences in how COVID-19 is affecting consumer markets
                                                        • Tech category less sensitive to worst-case COVID-19 scenario
                                                          • Figure 41: COVID-19 scenario forecast for technology hardware and communication services spending, 2015-25
                                                        • COVID-19 market disruption: risks and outcomes
                                                          • Figure 42: Summary of Mintel scenario expectations and the impact on the technology hardware and communication services market, June 2021
                                                      • Market Factors

                                                        • Remote work nearly doubles since pandemic
                                                          • Figure 43: Changes in work commute, February 2021
                                                        • Major manufacturers scramble to overcome global chip shortage
                                                          • K-shaped economic recovery accentuates digital divide
                                                            • 5G supports further innovation and connected potential
                                                            • Category Winners and Losers

                                                              • Winners
                                                                • Smart home integration increases
                                                                  • Figure 44: Smart home device ownership, March 2020-April 2021
                                                                • Wearable tech and health monitoring get a boost
                                                                  • Figure 45: Attitudes toward wearable technology – Healthcare, November 2020
                                                                • Social media platforms see bolstered revenues in 2020
                                                                    • Figure 46: Social media advertising revenue, 2019-20
                                                                  • Losers
                                                                    • Streaming takes on the theater industry
                                                                      • Figure 47: Total US revenue from box office admissions, at current prices, 2015-21
                                                                      • Figure 48: US video streaming and rental spending, 2015-20
                                                                  • Market Opportunities

                                                                    • 5G will expand mobile bandwidth capabilities for consumers
                                                                      • Better internet for more devices at home
                                                                        • Augmented reality poised for a breakthrough
                                                                        • The Consumer – Key Takeaways

                                                                          • Remote work is here to stay and so are the changes in behavior
                                                                            • Two out of three parents balance both work and home life remotely
                                                                              • Dependency on technology has increased due to COVID-19
                                                                                • Hearable devices create a sound barrier for crowded households
                                                                                  • Consumers interested in new tech for variety of categories
                                                                                    • About one third of consumers are Tech Enthusiasts
                                                                                    • Impact on Telecommuting

                                                                                      • The WFH experiment breaks standard expectations of office work
                                                                                        • Figure 49: Changes in work commute, February 202
                                                                                      • Remote workers skew toward wealthier Millennials and Gen Xers
                                                                                        • Figure 50: Breakdown of age and household income, by work commute since COVID-19, February 2021
                                                                                      • Nearly two thirds of parents balancing remote work and home life
                                                                                        • Figure 51: Breakdown of work commutes, by parental status, February 2021
                                                                                      • Full-time commuters skew toward Black and Hispanic consumers
                                                                                        • Figure 52: Breakdown of race and Hispanic origin, by work commute since COVID-19, February 2021
                                                                                    • Impact on Consumer Technology Use

                                                                                      • Importance of connectivity and hardware grows after COVID-19
                                                                                        • Figure 53: Impact of COVID-19 on technology, February 2021
                                                                                      • Tech and connectivity vital to remote workers
                                                                                          • Figure 54: Impact of COVID-19 on technology, by work commute, February 2021
                                                                                        • Parents prepped their homes for remote work and school
                                                                                            • Figure 55: Impact of COVID-19 on technology, by parental status, February 2021
                                                                                          • Increased dependence on technology driven by remote working women with interest in household automation
                                                                                              • Figure 56: COVID-19 impact – CHAID – Tree output, February 2021
                                                                                          • Electronic Product Ownership

                                                                                            • Hearables and wearables see robust growth since 2019
                                                                                              • Figure 57: Wearable device ownership, November 2020-February 2021
                                                                                              • Figure 58: Hearable device ownership, by household size, November 2020-February 2021
                                                                                            • Digitally based younger consumers don’t feel the need for a printer
                                                                                              • Figure 59: Printer ownership, by age, February 2021
                                                                                          • Electronic Product Purchase Intent

                                                                                            • Nearly one in three looking to buy a smartphone
                                                                                              • Figure 60: Electronic purchase intent, February 2021
                                                                                            • Hybrid commuters likely to be in the market for a tech purchase
                                                                                              • Figure 61: Electronic purchase intent, by work commute, February 2021
                                                                                          • Categories of Interest for New Technology

                                                                                            • Consumers want new tech across variety of categories
                                                                                              • Figure 62: Categories for new technology, February 2021
                                                                                            • Men seek tech for entertainment while women seek help around the home
                                                                                              • Figure 63: Categories for new technology, by gender and age, February 2021
                                                                                            • Hispanic parents particularly receptive to new tech for cooking
                                                                                              • Figure 64: Categories for new technology, by race and Hispanic origin, February 2021
                                                                                          • Attitudes toward Technology and Digital Trends

                                                                                            • Consumers are generally happy with their level of connectivity
                                                                                              • Figure 65: Attitudes toward technology – Mobile and home internet, February 2021
                                                                                            • Consumers more comfortable controlling devices with a smartphone than their voice
                                                                                              • Figure 66: Attitudes toward technology – Smartphone and voice control, February 2021
                                                                                            • COVID-19 resuscitates the built-in camera feature
                                                                                              • Figure 67: Attitudes toward technology – Built-in camera interest, by video callers and work arrangements, February 2021
                                                                                          • Consumer Segmentation

                                                                                                • Figure 68: Consumer segmentation – Attitudes toward technology, February 2021
                                                                                              • Ambivalent Tech Users (22%)
                                                                                                • Characteristics
                                                                                                  • Figure 69: Profile of Ambivalent Tech Users, February 2021
                                                                                                • Opportunities
                                                                                                  • Figure 70: Attitudes toward technology – Telecom satisfaction, by consumer segments, February 2021
                                                                                                • Tech Enthusiasts (32%)
                                                                                                  • Characteristics
                                                                                                    • Figure 71: Profile of Tech Enthusiasts, February 2021
                                                                                                  • Opportunities
                                                                                                    • Figure 72: Attitudes toward technology – Interest in new tech, by consumer segments, February 2021
                                                                                                  • Price Conscious Tech Users (25%)
                                                                                                    • Characteristics
                                                                                                      • Figure 73: Profile of Price Conscious Tech Users, February 2021
                                                                                                    • Opportunities
                                                                                                        • Figure 74: Attitudes toward technology – Brand vs. price, by consumer segments, February 2021
                                                                                                      • New Tech Rejecters (21%)
                                                                                                        • Characteristics
                                                                                                          • Figure 75: Profile of New Tech Rejecters, February 2021
                                                                                                        • Opportunities
                                                                                                            • Figure 76: Attitudes toward technology – COVID-19 prevention, by consumer segments, February 2021
                                                                                                        • Appendix – Data Sources and Abbreviations

                                                                                                          • Data sources
                                                                                                            • Sales data
                                                                                                              • Forecast
                                                                                                                • Consumer survey data
                                                                                                                  • Consumer qualitative research
                                                                                                                    • Abbreviations and terms
                                                                                                                      • Abbreviations
                                                                                                                        • Terms
                                                                                                                        • Appendix – CHAID Analysis

                                                                                                                          • Methodology
                                                                                                                            • Results
                                                                                                                              • Figure 77: COVID-19 impact – CHAID – Tree output, February 2021
                                                                                                                              • Figure 78: COVID-19 impact – CHAID – Table output, February 2021

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