After the COVID-19 onslaught, the consumer technologies market saw some recovery due to rising demand for remote working and the need for a connected ecosystem. Now there are new overarching issues affecting the global supply chains for many consumer segments, namely the war in Ukraine, macroeconomic uncertainties, and the ongoing China-US trade wars. According to global technology intelligence firm ABI Research, these conditions have led to weaker consumer demand. Still, with the technical advancements in Artificial Intelligence (AI), 5G connectivity, and new form factors, 2023 will be a recovery year for the consumer technology market as the latest innovations drive the future of a new generation of devices.
“In smartphones, the replacement cycle followed by the migration to 5G smartphones and eagerness to embrace new form factors like foldable devices will be the main growth drivers for accelerating adoption in 2023. With the rapid increase of AI in various verticals, innovation and use cases will accelerate the growth in end markets for various consumer technology verticals. Business professionals in consumer technology must embrace AI to leverage its potential, drive innovation, and gain a competitive edge,” explains Sachin Mehta, Senior Analyst, Consumer Technologies at ABI Research.
The consumer market for robotics is maturing and continued to thrive in the past six months, although results from leading players, such as iRobot, Roborock’s, Eufy, Samsung, and LG, suggest a market adapting to a range of economic and competitive pressures. This comes when there are specific concerns about addressing inventory management and reduced consumer spending. Consumer robotics shipments for 2023 will increase 13.6% from 2022, with revenue up 12% from 2022, as competition increases in the key home care robotics market. The total market for consumer robotics and smart appliances will see shipments at 215 million units, up 18% from 2022. Revenue will climb 9.6% to US$141.3 billion.
With all this happening worldwide, some consumer technology markets, like wearables, are witnessing a lot of innovation and new use cases. The overall market for the wearable category is expected to reach 363.10 million in 2022. “Health is the core center of innovation for the wearable category is pushing vendors to bring more robust devices with advanced features. The use of advanced sensors and AI-based algorithms will be on the rise to bridge the gap between the wearables and healthcare ecosystem in 2023 and beyond,” Mehta says. The healthcare wearables market is expected to grow from 31.64 million shipments in 2022 to 82.25 million in 2027.
Fixed broadband subscriptions are rising and are expected to reach 2 billion in 2027, as connectivity will become an essential part of the ecosystem. From smart homes to consumer robotics to the adoption of online entertainment platforms such as video streaming and online gaming, the demand for reliable broadband connection will thrive with the growth and innovations in various verticals. Also, 5G network deployments are likely to boost the 5G FWA market targeting the replacement of last-mile fiber-optic connectivity. The 5G FWA market is expected to grow significantly, with a CAGR of 62%, reaching nearly 72 million subscriptions in 2027.
The smart home also continues to transition from delivering individual value to a single home from a single service/device supplier into providing a networked infrastructure with value that will be leveraged by multiple players, multiple users, and beyond the home, to be connected throughout industries, cities, nations, and economies. “Also, in terms of connectivity, Bluetooth will play a pivotal role in the consumer technology market. Bluetooth consumer device shipments will continue to accelerate as the technology continues to be deployed beyond smartphones giving a big push to other verticals like smart homes, wearables, and other IoT applications,” Mehta concludes.
These findings are from ABI Research’s Consumer Technologies market data report.
