Description

“Over the course of 2022 and early 2023, the tech hardware industry faced barriers in the form of supply chain issues and recession that have impacted the ability to move product and generate sales. Still, there has been much innovation in the space, with developments in AI revolutionizing smart home technology and investments in the virtual reality space resulting in the launch of some of the most cutting-edge technology yet.”

– Michael Lloy, Senior Tech & Media Analyst

Key issues covered in this Report

  • Outside of widely owned tech like consoles, smartphones, and tablets, what hardware do Canadians own? What are they interested in purchasing?
  • What priorities do consumers have when considering their home entertainment options?
  • What smart home device features are consumers most interested in?
  • What are consumers’ general attitudes towards smart home and home entertainment technology?

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
  2. 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
  3. The Market – By the Numbers

    • Investor and consumer confidence low as stocks plummet, despite increases in revenue
  4. 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
  5. 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
  6. Fast Facts: Digital Trends – Hardware

  7. 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
  8. 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
  9. 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
  10. 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
  11. 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
  12. 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
  13. 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
  14. Appendix – Data Sources and Abbreviations

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

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.

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