Consumer technology companies have experienced massive growth since 2020, as the new norm for schools and businesses has shifted between the home, office, and classroom. According to Statista and the Consumer Technology Association, worldwide consumer tech sales increased from $422 billion in 2020 to a forecasted $505 billion in 2022.
As the world adapts to a new reality, a hybrid model is here to stay. What does this mean for brands? Although demand is strong, consumers are becoming increasingly intentional about how, where, and what they purchase. Their behaviors are driving new messages around loyalty and business models.
When you think about technology, what first comes to mind? Common themes include:
The in-home tech stack is robust. Research indicates that 84% of households have laptops, and 75% have at least one tablet. Homes are more likely to have laptops and tablets than desktops. The most common laptop brands are HP (40%), Dell (29%), and Apple (21%). Generationally, preferences shift: Apple is most prevalent among those 18 to 34 years old (35%), while HP leads among consumers 50 to 64 years old (47%).
In addition to laptops and computers, 96% of households have at least one cellular phone, with 28% having three or more. The most popular cellular phone brands are Apple (54%), Samsung (43%), LG (12%), Motorola (8%), and Google (5%).
Brand usage by generation:
With so many tech products under one roof, people are spending more time online than ever before. Globally, 92% say they are spending more or the same amount of time online compared to 2020. With constant connection to products, ease of use and experience will continue to be front and center for consumers. This leads to another major shift: how consumers choose to use their devices and which devices they buy is now more intentional. Being intentional is more than a buzzword; it's a lifestyle choice.
Globally, 61% report spending more time online, 31% about the same, and only 7% less.
Consumers are bringing intentionality to their tech choices. Although technology use has been steadily climbing for years, pandemic-induced lockdowns forced billions to spend more time online and with their devices, whether for work, school, or connecting with loved ones. However, the endless Zoom meetings and social media scrolling have contributed to tech burnout.
People want their devices to serve a purpose and improve their lives. As mental health and well-being remain at the forefront of global conversations, activities like gaming have provided some reprieve. A recent Microsoft survey linked gaming to mental wellness. Gaming sales, especially hardware, continue to increase, with U.S. video-game hardware revenue in 2021 reaching $1.3 billion. Publicis Sapient research shows that half of households have at least one gaming device, with PlayStation and Nintendo usage similar (27-28%), and Xbox not far behind (22% of households, mostly Xbox 360 or Xbox 1).
The proliferation of devices has often left people with too many choices, creating tech burden and overwhelm. For brands, this means it's time to simplify the experience for consumers with a marketplace approach. Most brands have D2C e-commerce sites, but these typically sell only their own products or selected upsell items. In a marketplace-based experience, a brand could curate which other brands appear, but give all products equal footing. For example, Samsung may sell Google products that work well in the Samsung ecosystem, or Whirlpool may sell replacement parts from other manufacturers alongside its own. Marketplace experiences help consumers cut through the clutter and feel confident that their choices will work together.
Consumers are not at war with technology—they like it, need it, and want it—it just needs to be easier and more convenient. Fifty-three percent of females and 42% of males are likely to be overwhelmed by technology choices, but they are still interested in what's to come. Sixty-two percent of males and 52% of females said they are excited to learn about new technology.
Among 18-34 year olds, 3 in 4 agree that technology is the best way to stay connected, compared to just over half of those 65+. The youngest group is also most excited to learn about new technology (73% agree, compared to 38% of those 65+). While excited, the youngest group is also most likely to try to reconnect with nature and minimize technology (39% of 18-34 year olds).
Among those 65+, 6 in 10 are overwhelmed by the many technology choices and options available.
| Statement | 18-34 | 35-49 | 50-64 | 65+ |
|---|---|---|---|---|
| I am satisfied with the technology in my home | 75% | 70% | 70% | 74% |
| Technology is the best way to stay connected | 75% | 63% | 61% | 54% |
| I am excited to learn about new technologies | 73% | 63% | 55% | 38% |
| Technology helps keep us safer | 58% | 50% | 45% | 51% |
| The technology in my home reflects my style | 59% | 50% | 46% | 45% |
| I am concerned about the technology industry being led by only a few large brands | 46% | 49% | 51% | 58% |
| I am overwhelmed by all the technology choices and options available | 39% | 40% | 49% | 61% |
| I am trying to reconnect with nature and minimize technology | 39% | 31% | 29% | 27% |
| It is difficult to decide on which technology is best for my home | 34% | 40% | 37% | 38% |
As consumers’ lives become increasingly connected, the home is primed to be the central location for it all. But we are not there yet. About four in ten households currently use a personal voice assistant or smart hub, with Alexa having double the usage compared to Google devices (28% vs. 14%).
About 20% of households use three connected devices: the doorbell, a heating and cooling device, and security cameras. Fewer homes use connected lighting (16% indoors and 11% outdoors). In terms of planned purchases in the next two years, home security cameras are ranked highest (17%).
Younger generations are most likely to have internet-connected devices like speakers (35%), heating and cooling (24%), security cameras (23%), and doorbells (22%). Many of the listed items had usage less than 10% by those age 35+.
| Device | Total | 18-34 | 35-49 | 50-64 | 65+ |
|---|---|---|---|---|---|
| Security cameras | 21% | 23% | 26% | 20% | 13% |
| Heating/Cooling | 19% | 24% | 19% | 19% | 15% |
| Doorbell | 18% | 22% | 25% | 16% | 12% |
| Indoor lighting | 16% | 9% | 19% | 20% | 6% |
| Outdoor lighting | 11% | 12% | 9% | 15% | 9% |
| Speakers | 25% | 35% | 33% | 21% | 12% |
| Clocks | 11% | 15% | 13% | 9% | 10% |
| Smart vacuums | 10% | 17% | 11% | 8% | 6% |
| Kitchen appliances | 10% | 15% | 10% | 9% | 8% |
| Kitchen gadgets | 7% | 11% | 7% | 6% | 5% |
| Window blinds/curtains | 5% | 7% | 5% | 4% | 5% |
| Pet related devices | 4% | 7% | 6% | 3% | 2% |
| Other | 10% | 8% | 15% | 10% | 6% |
Consumers value many parts of their lives being connected. What’s impeding a fully connected home life? The experience is not there yet—it is too hard. Brands have an opportunity to think beyond the single solution they provide today and consider how they will fit into the broader home ecosystem of the future. The ultimate goal should be to give consumers peace of mind that everything will seamlessly work together.
Publicis Sapient research reveals that brand trust is still a significant factor influencing buying decisions across generations. Brand recognition and a good reputation are important to almost nine in ten surveyed when purchasing technology products. Samsung ranked as the No. 1 brand by consumers, with 44% saying they have full or a lot of trust in the brand. Amazon closely followed with 40%, and Apple with 34%. Meta had very low trust cross-generationally, with nearly a third saying they do not trust the brand.
Although brand trust is essential, consumer preference differs by generation. Older groups are more likely to consider “being made by a brand that has a good reputation” as important (92% in the 65+ group compared to 81% in the 18-34 group), whereas younger generations place more importance on “being the same brand as other tech” and “being the newest model.”
The challenge remains: can brands maintain their reputations while also addressing the importance of bringing new products to market? Or will the notion of marketplaces shift consumer preference so that they do not have to have the same brand across tech products? Consumers have many choices right now, but are they the right choices?
In addition to trust, it is important to note areas of opportunity for brands, especially addressing consumers’ many frustrations.
Common themes in consumer sentiment include usability, longevity and value, ease of installation and use, and privacy.
Overall, safety and privacy are complicated concerns for consumers. Eighty-one percent say they are concerned with privacy setting options in their tech products, such as what data are being collected and how these data are used. Many tech products require consumers to adjust their data settings away from the default to have more privacy, but only 20% do so regularly. When making those changes, almost half regularly or occasionally ask friends or family for help to set up their new technology. Those 65+ are more likely to reach out for help.
Seventy-two percent of consumers said they are aware of data being collected in exchange for free services or features. There is significant interest from consumers willing to pay a premium for more privacy (7% “very interested,” 32% “somewhat interested”). Brands can create greater trust, loyalty, and ROI by being transparent in their data collection, simplifying how users can set up their preferences, and potentially offering services at an additional price point for those who want more privacy.
Common themes include:
When it comes to tech product preference, quality and price are two important factors that dictate what to buy.
Where are consumers getting their product information? The buying journey is not linear, and most consumers do their research ahead of time, with 86% taking time to research and compare what to buy beforehand. Preference for buying technology online or in-store is fairly split, with 42% preferring online and 58% preferring in-store.
The likelihood of using certain sources varies by age group: those 50+ are more likely to ask friends or family and more likely to ask staff in-store. Those 18 to 34 are less likely to visit stores in person to compare items, instead seeking information from tech blogs, forums, and social media (like Facebook and Instagram).
This data emphasizes the importance for all brand channels to create the experience, education, and detail necessary for consumers. Reputation and quality will play out in these forums and chats. The data emphasize the importance of brand stickiness, personalization, and experience.
Preference for buying technology online or in-store is fairly split, with 42% preferring online and 58% preferring in-store.
Since consumers prefer to research their buying decisions ahead of time, planned purchases of technology are much more common than impulse, with 89% usually planning their purchases. One in four buy technology products on special occasions, whereas the remainder are more likely to buy at any time of the year.
Younger audiences have close to an equal split of preferring to shop in-store or online, while those 65+ are more likely to prefer going in-store (68%).
| Age Group | Prefer Online | Prefer In-Store | Love Shopping | Shop by Necessity | Always on Lookout | Wait for Need |
|---|---|---|---|---|---|---|
| 18-34 | 51% | 49% | 51% | 49% | 31% | 69% |
| 35-49 | 43% | 57% | 31% | 69% | 24% | 76% |
| 50-64 | 37% | 63% | 22% | 78% | 17% | 83% |
| 65+ | 32% | 68% | 14% | 86% | 7% | 93% |
Are you making it easy for consumers to learn about your brand and products? Do you have a complete picture of their interactions with the brand? Customer lifetime value is critical to that stickiness, and how brands use data to personalize experiences for consumers will only become more important.