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 remains 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 thinking about technology, 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, Apple is most prevalent among those aged 18-34 (35%), while HP leads among those aged 50-64 (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. Ease of use and experience will continue to be front and center for consumers, leading to a major shift in preference: consumers are now more intentional in their device choices. Being intentional is more than a buzzword; it's a lifestyle choice.
Globally:
92% of people are spending the same amount or more time online compared to last year.
Consumers are bringing intentionality to their tech choices. 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 led 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, activities like gaming have provided some reprieve. A 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 left people with too many choices, creating tech burden and overwhelm. Brands must alleviate this pain with a marketplace experience. Most brands have D2C e-commerce sites, but these typically sell only their own products or selected upsells. A marketplace-based experience allows brands to curate which other brands appear, giving 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. Marketplaces help consumers cut through overwhelming choices and ensure compatibility within their ecosystem.
Consumers are not at war with technology—they like, need, and want it—but it must be easier and more convenient. 53% of females and 42% of males are likely to be overwhelmed by technology choices, yet 62% of males and 52% of females 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+), but they are 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. However, 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, 11% outdoors). In terms of planned purchases in the next two years, home security cameras rank highest (17%).
Internet Connected Devices – Have and Plan to Get in Next 24 Months (Total):
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 have usage less than 10% among those aged 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, but a fully connected home is still too hard to achieve. Brands have an opportunity to think beyond single solutions and consider how they 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 remains 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, followed by Amazon (40%) and Apple (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 vs. 81% in the 18-34 group), while younger generations place more importance on “being the same brand as other tech” and “being the newest model.”
In addition to trust, brands should address consumers’ frustrations, such as usability, longevity, value, ease of installation and use, and privacy. Safety and privacy are complicated concerns: 81% of consumers are concerned with privacy setting options in their tech products, such as what data are collected and how they are used. Only 20% regularly adjust their data settings for more privacy, and almost half regularly or occasionally ask friends or family for help setting up new technology. Those 65+ are more likely to reach out for help.
72% of consumers are aware of data being collected in exchange for free services or features, and there is significant interest in paying a premium for more privacy (7% “very interested,” 32% “somewhat interested”). Brands can create greater trust, loyalty, and ROI by being transparent in data collection, simplifying user preference setup, and potentially offering premium privacy services.
Common technology frustrations include:
Quality and price are the most important factors dictating tech product purchases. Most consumers (86%) research and compare products ahead of time. Preference for buying technology online or in-store is fairly split: 42% prefer online, 58% prefer in-store.
Older consumers (50+) are more likely to ask friends or family and in-store staff for advice, while those 18-34 are less likely to visit stores and more likely to seek information from tech blogs, forums, and social media. This highlights the importance of brand channels providing experience, education, and detail.
Ranking of Importance for Deciding on Which Technology Products to Buy:
Preference for buying technology online or in-store:
Shopping attitudes:
Planned purchases are much more common than impulse buys, with 89% usually planning their purchases. One in four buy technology products on special occasions; the rest buy at any time of the year.
Younger audiences have a near-equal split between shopping in-store and online, while those 65+ are more likely to prefer in-store (68%). Love for technology shopping is much higher among the youngest group (51% of 18-34 year olds) compared to 22% in 50-64 year olds and 14% in the 65+ group. 31% of 18-34 year olds are always on the lookout for new tech products, compared to only 7% in the 65+ group.
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 brand stickiness, and how brands use data to personalize experiences will only become more important.
With frequent upgrades and replacements, technology obsolescence creates a sustainability problem: where and how should consumers dispose of unwanted hardware? Almost nine in ten consumers are concerned with battery longevity, and 77% are interested in returning obsolete technology to a recycling location or retailer.
About half (48%) would be willing to pay 10-15% more for environmentally friendly products, and 54% would pay more for products that can be fully recycled. Although some brands offer recycling, these options are often hidden or require effort to find. Brands can integrate recycling into the e-commerce journey, reinforcing their environmental values to younger consumers.
This presents an opportunity for new business models, such as subscription services. Thirty-five percent of households have at least one subscription or auto-shipment program. Tech companies should explore whether a subscription model—Tech as a Service—could foster loyalty and create predictable revenue streams around recycling or refurbishing older tech.
Interest in returning technology that does not work or is obsolete to a recycling location or retailer:
Winning brands of the future will provide frictionless customer experiences, creating an online and offline journey that fits seamlessly into consumers’ lives. The upside for brands that deliver convenience, ease, and connectivity will be immense. Where are you today, and how will you get to that next level?
A net promoter score (NPS) is calculated by subtracting the percentage of Detractors (0-6 raters) from the percentage of Promoters (9-10 raters). Passives (7-8 raters) are considered neutral.
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