A newly released study from The NPD Group estimates the consumer technology industry will experience several years of sales growth.
The NPD Group‘s “Future of Tech” report finds the market will see 5% revenue growth in the U.S. this year, followed by 4% in 2021 and 3% in 2022.
Some of this year’s most popular products the study says are wireless headphones, large TVs (screen sizes 65 inches and bigger), and smart home devices.
“While the industry is poised to pivot towards market-changing new technologies, it is worth noting that consumers will continue to shop what is available today in consumer electronics,” states Stephen Baker, Vice President, industry advisor, The NPD Group.
“Great prices on current technology, much of which is still in the midst of upgrade cycles and product improvements will continue to spur sales in the industry.”
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Technology Shines Over Holiday Period
Looking at the recently completed holiday sales period, The NPD Group notes that while many general categories experienced little or no growth, technology sales increased by nearly 5%.
According to the Port Washington, N.Y.-based research company, the shorter holiday period of 2019 sparked consumer spending during the annual shopping period to produce 9% sales growth during Thanksgiving week and 14% growth during Cyber Monday week.
Winding up the holiday shopping period, The NPD Group emphasizes Christmas week saw the biggest year-over-year gain—21%—compared to 2018.
This past holiday season computers and headphones were some of the most popular items with consumers, with headphones experiencing sales up more than 52% over 2018 figures.
“Over the holiday, big-screen TVs, premium products and promotional pricing drove the tech industry to growth, as consumers took advance of sales to purchase the best and biggest products they could afford,” adds Baker.
“This is a positive indicator as we head into 2020 and beyond, as consumers are choosing to purchase at a time when a lot of innovation is looming—5G, foldable screens, OLED, AI—not necessarily rating for those technologies, nor expecting today’s products to be discounted.”