2023
9
US Tech Trends: 2023 Market Report
2023-02-22T03:02:48+00:00
OX1156455
3695
160697
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Report
en_GB
“Pandemic era growth has slowed, and as consumers contend with record inflation, they will delay new tech purchases as long as their current devices meet their needs. In communication services,…

US Tech Trends: 2023 Market Report

£ 3,695 (Excl.Tax)

Description

Unlock the potential of US Tech Trends with our comprehensive report. Our analysis examines consumer attitudes towards the impacts of inflation, AI, and new forms of tech-based entertainment. You’ll gain invaluable insight into the technology market size in the US, as well as market projections, segmentation, and the latest tech market trends for 2023. With our extensive tech trends market report, you can gain a better understanding of how to respond to changing consumer demands and take advantage of new opportunities to stay ahead of your competition.

Tech Trends: Current Market Landscape

Consumer markets have faced an unprecedented level of turmoil in recent years, from the massive economic disruption in 2020 from COVID-19 to 40-year highs in inflation in 2022. Real GDP (the inflation-adjusted measure of GDP) increased at an annualized rate of 2.9% in Q3 2022 – the first in which the US experienced positive growth in 2022, following two quarters of decline. However, consumer sentiment remains near historic lows, with rising interest rates, stubborn inflation, as well as volatile financial markets continuing to erode households’ confidence. With wage growth stalling, consumers exhausting their savings, soaring credit card debt, and stubbornly high inflation – all signs point to reduced spending heading into next year.

Technology consumer insights — What consumers want and why

Digital technology is at the beginning stages of a watershed moment – AI’s introduction to the consumer market. The impact from just text-to-text operations, most notably ChatGPT, will be profound, not only in how it’s going to shape behavior but also in the data demands necessary to power it.

Tech Trends Market Trends and Opportunities

  • Tech Trends Market: Consumer spending on tech hardware and communication services is estimated to have increased slightly in 2022, bringing growth back in line with pre-pandemic spending trends.
  • Tech Trends: Communications services are often in stiff competition to lock in subscribers – and price matters. Even as consumers’ data demands increase, per capita household spending hasn’t increased to the extent that may be expected.

Read on to discover more about the Tech Trends consumer market, read our Social Commerce – US – 2023 report, or take a look at our other Technology and Telecoms Market research reports.

Quickly Understand

  • The market value and forecast of tech hardware and communication services.
  • How economic factors and supply chain issues impact the market.
  • Tech trends to watch in 2023
  • Consumer ownership of tech devices and how inflation has affected tech spending.
  • Consumer knowledge, use and interest in various fintech and virtual tech products and services.
  • Consumer knowledge, use and interest in services like 5G, cloud computing, Wi-Fi 6.

Covered in this Report

Leading brands in the consumer tech market: Matter, Google, Amazon, ChatGPT, OpenAI, Dall-e, TikTok.

Expert Analysis from a Specialist in the Field

This report, written by Jenni Nelson, a leading analyst in the Technology and Media sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Pandemic era growth has slowed, and as consumers contend with record inflation, they will delay new tech purchases as long as their current devices meet their needs. In communication services, subscribers are looking for deals and will consider the value that current subscriptions provide; 2023 may see some consumers trimming back on entertainment and looking to unbundle. Interest in the metaverse lingers, but consumer attention has shifted to generative AI. 2023 will be devoted to AI literacy, followed by fundamental change in how consumers use the internet.
Jenni Nelson, Research Analyst, Technology and Media
Jenni Nelson
Analyst, Tech, Media and Entertainment

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US consumer expenditures and fan chart forecast for technology hardware and communications services, at current prices, 2017-27
      • Figure 2: Technology hardware and digital communication services outlook, 2023-28
    • Opportunities
    • Smart home tech could get a boost
    • Generative AI will change everything
    • Rural broadband expansion will bring a relatively smaller but less equipped new customer base
    • Challenges
    • Inflation causes consumers to make trade-offs in tech and communications spending
      • Figure 3: Inflation impact on technology spending/purchases in the past six months, 2022
    • Although greatly improved since the pandemic, supply chain issues linger
    • Key consumer insights
  3. Market Size and Forecast

    • Hardware to drive the market, AI-induced data demands will be an opportunity for services
      • Figure 4: Total US consumer expenditures and fan chart forecast for technology hardware and communications services, at current prices, 2017-27
      • Figure 5: Total US consumer expenditures and forecast for technology hardware and communications services, at current prices, 2017-27
  4. Segment Performance

    • Hardware expected to strengthen lead over services as devices proliferate
      • Figure 6: Total US consumer expenditures and forecast for technology hardware and communications services, at current prices, by segment, 2017-27
    • Perpetual demand for better, faster, cheaper tech
      • Figure 7: Total US consumer expenditures and fan chart forecast for technology hardware, at current prices, 2017-27
    • Opportunities for communication services growth are on the horizon
      • Figure 8: Total US consumer expenditures and fan chart forecast for communication services, at current prices, 2017-27
  5. Market Factors

    • Conflicting macroeconomic indicators add to uncertainty
    • Inflation beginning to cool, but remains persistently high
      • Figure 9: Consumer Price Index change from previous period, 2020-22
    • Consumer confidence in decline as cost of living increases
      • Figure 10: Consumer Sentiment Index, 2020-22
    • Low unemployment generally regarded as a positive, could it be too low?
      • Figure 11: Unemployment, 2020-22
    • Supply chain issues ease, not yet completely resolved
      • Figure 12: Global Supply Chain Pressure Index (GSCPI), 2019-23
    • To mitigate risk, business and government look to bring tech manufacturing stateside
    • COVID-19 disruptions persist
  6. What to Watch in 2023

    • AI explodes onto the scene with ChatGPT headlining conversations
    • Establish AI literacy in 2023
    • Retool SEO/search strategies for ChatGPT
    • Rebound with SaaS
    • Capitalize on existing IP
    • Humanoid robots aren’t far off (10-20 years?)
    • Cryptocurrency isn’t going away – but needs an image makeover
    • 2022: The year crypto imploded
    • ISPs focus less on bundles as consumers look to cut spending
  7. The Technology Consumer: Fast Facts

    • Inflation is impacting consumers’ tech purchases
    • Most households have dedicated computers, but ownership is in decline
    • Entertainment landscape undergoing a shift, social video making gains
    • Fintech: cryptocurrency awareness is high, but low use and intent to repeat
    • Virtual tech: consumers unconvinced of VR value, equipment yet to catch on
    • Connectivity: consumers look to performance over name
  8. Inflation Impact on Leisure, Entertainment and Tech

    • Eight in 10 say inflation has impacted their leisure and entertainment
      • Figure 13: Inflation impact on leisure and entertainment in the past six months, 2022
      • Figure 14: Inflation impact on leisure and entertainment in the past six months, by gender and age, 2022
      • Figure 15: Inflation impact on leisure and entertainment in the past six months, by HHI and financial situation, 2022
    • Cutting or downgrading is more common for services than it is for devices
      • Figure 16: Inflation impact on technology spending/purchases in the past six months, 2022
    • Be part of the solution
      • Figure 17: Inflation impact on technology spending/purchases in the past six months, by age and parental status, 2022
    • Subscription churn could spike if savings outweigh effort
      • Figure 18: Cancelled a streaming subscription in the past six months due to inflation, by age, 2022
  9. Household Tech Ownership

    • Households rely on tech, landscape shifts as consumer needs evolve
      • Figure 19: Home electronics ownership, 2022
    • Successful domestic robots will tackle tasks – fun can come from other tech
      • Figure 20: Instagram post, The Litter Robot, 2022
    • Older consumers still rely on the home computer
      • Figure 21: Home electronics ownership – Computer and wi-fi products, by age, 2022
    • Consumers see limited value in smart speakers, keeping growth at bay
      • Figure 22: Home electronics ownership – Select items, 2019-22
  10. Tech-related Entertainment Priorities

    • Music, streaming video top entertainment choices, social video gaining ground
      • Figure 23: Tech-related entertainment priorities – Ranking, 2022
    • Focus on KPIs over ROI when targeting parents on social media
      • Figure 24: Tech-related entertainment priorities – Any rank, by parental status, 2022
    • Use emerging social networks’ mission as inspiration for creating consumer connections
      • Figure 25: Social media sites visited at least weekly, by parental status and index to all, 2022
    • For video, competition is fierce and not just from other streamers
      • Figure 26: Tech-related entertainment priorities – Any rank, by inflation impact, 2022
  11. Spotlight on Fintech

    • Transform fintech’s tarnished reputation by focusing on utility
      • Figure 27: Fintech – Awareness and knowledge, 2022
    • NFTs need to demonstrate a real-world purpose beyond simple possession
      • Figure 28: NFTs – Awareness and knowledge, by gender and age, 2022
    • Fintech adoption will be slow and incremental
      • Figure 29: Fintech – Use and interest, 2022
    • Virtual real estate not yet a draw; few repeat investors
      • Figure 30: Investing in digital real estate – Use and interest, by age and household income, 2022
    • Focus on educating those who know “a little” rather than the uninterested or unaware
      • Figure 31: Cryptocurrency and NFTs– Use and interest, by knowledge of cryptocurrency and NFTs, 2022
  12. Spotlight on Virtual Tech

    • VR needs greater utility to go mainstream
    • Keep tech messaging simple and concentrated on benefits of use
      • Figure 32: Virtual tech – Awareness and knowledge, 2022
    • VR’s path to future adoption could get a boost via the medical sector
      • Figure 33: Virtual tech – Use and interest, 2022
    • Target video gamer segments with VR experiences
      • Figure 34: Virtual tech – Any interest among active gamers and active gamers index to all, 2022
  13. Spotlight on Networks and Connectivity

    • Tech “terms” don’t really resonate, consumers want speed and reliability
      • Figure 35: 5G, cloud computing, Wi-Fi 6 and IoT – Awareness and knowledge, 2022
    • Mobile networks providers take advantage of ISP delays in rural 5G rollouts
      • Figure 36: 5G Awareness and knowledge, 2019 and 2022
    • Non-video digital subscriptions, cloud gaming are niche services
      • Figure 37: Digital subscriptions and cloud gaming – Use and interest, 2022
    • Cloud gaming will grow as internet catches up to gamers
      • Figure 38: Cloud gaming use and interest – NETs, by video game players, 2022
  14. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
    • Terms
  15. Appendix – The Consumer

      • Figure 39: Emerging tech knowledge and awareness, 2022
      • Figure 40: Interest in tech-related activities, 2022
      • Figure 41: Interest in tech-related activities – NETs, 2022
  16. Appendix – The Market

      • Figure 42: Total US retail consumer expenditures and forecast of technology hardware and communications services, at inflation-adjusted prices, 2017-27
      • Figure 43: Total US retail consumer expenditures and forecast of technology hardware and communications services, by segment, at inflation-adjusted prices, 2017-27
      • Figure 44: Average annual household spending on technology equipment and telecommunications services, 2017-22
      • Figure 45: Total US retail consumer expenditures and forecast of technology hardware and communications services, by segment, at current prices, 2020 and 2022
      • Figure 46: Total US consumer expenditures and forecast of technology hardware, at current prices, 2017-27
      • Figure 47: Total US consumer expenditures and forecast of technology hardware, at inflation-adjusted prices, 2017-27
      • Figure 48: Total US consumer spending and forecast of communication services, at current prices, 2017-27
      • Figure 49: Total US consumer spending and forecast of communication services, at inflation-adjusted prices, 2017-27

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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