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Description

Description

“Technology has enabled consumers to bridge the physical distance imposed by COVID-19. It will undoubtedly accelerate the use and reliance on digital services and consumer electronics, and lead to new innovations.”
– Buddy Lo, Sr. Technology and Consumer Electronics Analyst

This Report will cover the following areas:

  • Impact of COVID-19 on consumers in the technology category 
  • State of the hardware and digital services markets before COVID-19
  • How a COVID-19 Recession will impact the hardware and digital services markets
  • Segment performance in hardware and digital services

This Report covers the impact of COVID-19 on the technology category including technology hardware and digital services. Consumer attitudes and behaviors toward technology as well as market performance and opportunities in the short, medium and longer term are discussed. 

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • Scope
      • Definition
        • Economic assumptions
          • COVID-19: US context
          • Executive Summary

            • Analyst perspective: Technology bridges the physical distance imposed by COVID-19
              • Key takeaways
                • Short-, medium- and longer-term impacts
                  • Figure 1: Short-, medium- and longer-term impact of COVID-19 on technology hardware and digital services, May 2020
                • Market performance and spending forecast
                  • Figure 2: Consumer spending on technology – chart, by technology hardware and digital services, at current prices, 2010-25
                • Segment performance: Technology hardware
                  • Segment performance: Digital services
                  • Impact of COVID-19 on Consumers

                    • COVID-19 concerns drive changes in behavior, increased reliance on technology
                      • Elevated stress is the norm, tech is part of the problem – and can be part of the solution
                          • Figure 3: COVID-19 exposure and life disruption concern, March 4, 2020 – May 26, 2020
                        • Protective behaviors adopted during the short term will linger
                            • Figure 4: COVID-19 lifestyle changes, March 4, 2020 – April 16, 2020
                          • Lessons from China: contact tracing may provide a solution for anxious consumers
                            • Mintel Trend Drivers
                              • Figure 5: Mintel Trend Drivers
                            • Technology
                              • Wellbeing
                                • Experiences
                                  • Rights
                                    • Identity
                                      • Value
                                        • Surroundings
                                        • How a COVID-19 Recession Will Impact Technology

                                          • Market performance and spending forecast
                                            • Figure 6: Consumer spending on technology – chart, by technology hardware and digital services, at current prices, 2010-25
                                            • Figure 7: Consumer spending on technology – data table, by technology hardware and digital services, at current prices, 2010-25
                                          • Surging unemployment will curtail discretionary spending
                                            • Figure 8: Monthly unemployment rate, December 2005-10 and March 2018-May 2020
                                          • Downturn means spending decline for hardware, gains for services
                                            • Replacement, innovation that meets new consumer needs underpin hardware spending during a downturn
                                              • Looking back to predict what’s ahead
                                                • Figure 9: Consumer spending on select technology hardware, monthly, 2006-10
                                              • Consumers unlikely to cut digital services budgets, even as they reduce spending in other categories
                                                • Looking back to predict what’s ahead
                                                  • Figure 10: Consumer spending on select digital services, monthly, 2006-10
                                                • Expect ecommerce sales to continue accelerated growth trajectory
                                                    • Figure 11: US ecommerce share of retail sales, 2009-April 2020
                                                • State of the Technology Hardware Market Before COVID-19

                                                  • PCs, tablets, peripherals and software sales grow slowly, buoyed by software
                                                    • Figure 12: Consumer spending on PCs, tablets, peripherals and software, annual, 2000-19 and Q1 2020
                                                  • Spending decline on video and audio equipment belies growth in volume sales
                                                    • Figure 13: Consumer spending on video and audio equipment, annual, 2000-19 and Q1 2020
                                                • Impact of COVID-19 on the Technology Hardware Market

                                                    • Figure 14: Short-, medium- and longer-term impact of COVID-19 on technology hardware, May 2020
                                                  • Meeting consumer needs in the short term
                                                    • Consumers work hard, play hard from home
                                                      • Figure 15: Change in spending priorities due to COVID-19 – Technology and communications and Leisure/entertainment, April 16-May 26, 2020
                                                    • Short-term considerations
                                                      • Meeting consumer needs in the medium term
                                                        • Economic realities put pressure on consumers and technology hardware spending
                                                          • Medium-term considerations
                                                            • Meeting consumer needs in the longer term
                                                              • Innovation and fundamental shifts in behaviors as a result of COVID-19 will drive interests
                                                                • Temporary work-from-home situations have potential to become more permanent
                                                                  • Microbial awareness could lead to cleaner consumers
                                                                    • Figure 16: PhoneSoap Facebook page, March and April 2020
                                                                  • Wearable tech can shift from fitness to health
                                                                    • Longer-term considerations
                                                                    • Technology Hardware Market: Segment Performance

                                                                      • Home office – laptop, desktop and tablet computers, routers
                                                                        • Increasing power and portability keeps laptops relevant
                                                                          • Figure 17: Laptop, desktop, tablet computer ownership and purchase intent, August 2019, February 2020
                                                                        • Tablets have been a drag on unit sales growth – COVID-19 changes that in the short term
                                                                          • Desktop PC market bifurcated: relegated to relic status vs elevated for niche interests
                                                                            • Home entertainment – TVs, Blu-ray/DVD players, smart speakers, streaming media players
                                                                              • High level of ownership for household entertainment devices will dampen need
                                                                                • Figure 18: Home entertainment electronics ownership and purchase intent, February 2020
                                                                                • Figure 19: UHD TV discount sale prices, Fry’s and Costco, April 2020
                                                                              • Gaming consoles
                                                                                • Figure 20: Video game console ownership and purchase intent, August 2019 and February 2020
                                                                              • Smartphones
                                                                                • Pre-pandemic, longer purchase cycles sent smartphones on a downward trend
                                                                                  • Smartphones are essential, but current models are “good enough” to delay upgrades
                                                                                    • Figure 21: Smartphone ownership and purchase intent, January 2019, August 2019 and March 2020
                                                                                  • Wearables
                                                                                    • Wearables have yet to reach widespread adoption; purchase intent shows promise
                                                                                      • Figure 22: Wearables and wrist-worn wearable technology ownership and purchase intent, November 2019
                                                                                      • Figure 23: TICWRIS-Smartwatch Facebook page, May 2020
                                                                                      • Figure 24: Oura-smart ring Facebook page, June 2020
                                                                                    • AR/VR adoption remains limited; COVID-19 to drive increased interest
                                                                                      • Figure 25: AR/VR headset ownership and purchase intent, November 2019
                                                                                  • State of the Digital Services Market Before COVID-19

                                                                                    • Internet is essential
                                                                                      • Figure 26: Consumer spending on internet services, annual, 2000-19 and Q1 2020
                                                                                    • Telecommunication services spending driven by cellular use
                                                                                      • Figure 27: Consumer spending on telecommunication services, annual, 2000-19 and Q1 2020
                                                                                    • Video entertainment revenue grows, delivery methods evolve
                                                                                      • Figure 28: Consumer spending on cable, satellite, other live TV; video/audio streaming and rental, annual, 2000-19 and Q1 2020
                                                                                  • Impact of COVID-19 on the Digital Services Market

                                                                                      • Figure 29: Short-, medium- and longer-term impact of COVID-19 on digital services, May 2020
                                                                                    • Meeting consumer needs in the short term
                                                                                      • Digital connection provides critical support during isolation
                                                                                        • Destinations turn to virtual visits to engage the public
                                                                                          • Figure 30: Cincinnati Zoo & Botanical Garden ‘Home Safari Facebook Lives’ page, May 2020
                                                                                        • Short-term considerations
                                                                                          • Meeting consumer needs in the medium term
                                                                                            • Digital services will adapt to new social and economic landscape
                                                                                              • Medium-term considerations
                                                                                                • Meeting consumer needs in the longer term
                                                                                                  • Role of digital services will continue to gain prominence in the longer term
                                                                                                    • Longer-term considerations
                                                                                                    • Digital Services Market: Segment Performance

                                                                                                      • Home internet and mobile service
                                                                                                        • Internet even more critical during COVID-19 pandemic
                                                                                                          • Figure 31: Home internet source, July 2019
                                                                                                        • Consumers won’t want to go back to data with limits
                                                                                                          • Figure 32: Attitudes toward mobile network plans – Data plans and speed, January 2020
                                                                                                        • Social media
                                                                                                          • Social media platforms face scrutiny about their role in sharing information
                                                                                                            • Figure 33: Top 5 ways to get the news, by age, May 2019
                                                                                                          • Online gaming
                                                                                                            • Digital distribution will be the new standard
                                                                                                              • Streaming services
                                                                                                                • Crowded market means streaming services will face consolidation in the longer term
                                                                                                                  • Free trials effective in the short term; longer-term success hinges on content quality
                                                                                                                    • Figure 34: Streaming video behaviors, May 2020
                                                                                                                  • Communication apps – business and pleasure
                                                                                                                    • Virtual connections replace physical connections during COVID-19
                                                                                                                      • Figure 35: Volume of mentions of #virtualhappyhour on social media by week, 2/2/2020 – 4/5/2020
                                                                                                                      • Figure 36: Growth of downloads of video conferencing apps (weekly average), March 15-21, 2020 vs Q4 2019
                                                                                                                    • Video conferencing services need to differentiate for longer-term success
                                                                                                                      • eCommerce
                                                                                                                        • Online shopping becoming increasingly normalized
                                                                                                                          • Figure 37: Coronavirus behaviors and future activities, April 24-May 26 2020
                                                                                                                        • Mass store closures mean fewer options for in-person shopping
                                                                                                                        • Appendix – Data Sources and Abbreviations

                                                                                                                          • Data sources
                                                                                                                            • Consumer spending data
                                                                                                                              • Market data
                                                                                                                                • Consumer survey data
                                                                                                                                  • Consumer qualitative research
                                                                                                                                    • Abbreviations and terms
                                                                                                                                      • Abbreviations
                                                                                                                                        • Terms
                                                                                                                                          • Market performance and spending forecast data tables
                                                                                                                                            • Figure 38: Consumer spending on technology – data table, at current prices, indexed to 2010, 2020, 2025, 2010-25
                                                                                                                                            • Figure 39: Consumer spending on technology – data table, by technology hardware and digital services, at current prices, 2000-25
                                                                                                                                            • Figure 40: Consumer spending on technology – data table, by technology hardware and digital services, at current prices, 2010-25

                                                                                                                                        About the report

                                                                                                                                        This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                        • The Consumer

                                                                                                                                          What They Want. Why They Want It.

                                                                                                                                        • The Competitors

                                                                                                                                          Who’s Winning. How To Stay Ahead.

                                                                                                                                        • The Market

                                                                                                                                          Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                        • The Innovations

                                                                                                                                          New Ideas. New Products. New Potential.

                                                                                                                                        • The Opportunities

                                                                                                                                          Where The White Space Is. How To Make It Yours.

                                                                                                                                        • The Trends

                                                                                                                                          What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                        Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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