NielsenIQ (NIQ) has released a new report titled The State of Tech & Durables, which outlines key macro drivers for growth in the Tech & Durables (T&D) industry for 2025. The report identifies product innovation, consumer behaviour, and strategic business models as vital components to enhance sales and consumer experience.
The report reveals that 67% of consumers are likely to try new products if they are perceived as affordable. However, while T&D sales volume grew by 1% in the first half of 2024, the revenue declined by 1%, indicating that consumers are prioritising value and affordability in their purchasing decisions. This trend shows a shift from cautious to intentional spending, which NIQ anticipates will drive T&D sales forward.
Julian Baldwin, president for Tech & Durables at NIQ, stated, “Now is the time for T&D companies to focus on innovation and carve out a market edge. Consumers are cautious but would like to spend on innovative products which drive value and are customised to their needs.” He highlighted that innovation focusing on convenience, performance, health, user-centred design, and sustainability will be essential in 2025.
Key factors influencing consumer purchases include:
- Affordability and value: A significant 70% of consumers would opt for sustainable and energy-efficient products if priced affordably. Additionally, 61% are willing to pay a premium for longer-lasting devices.
- Convenience and multifunctionality: Products that simplify daily tasks are in demand. For instance, sales of multifunctional robot vacuums surged by 55%, with consumers increasingly favouring robotic features.
- Performance and connectivity: Smart connected products that address daily needs are experiencing mass adoption. Sales of smartphones with 256GB storage increased by 33% in the first half of 2024.
- Health and well-being: The market for smart health technology is expanding, with sales of wearable devices rising by 3% in early 2024.
- AI innovation: The report also highlights the growing role of AI in consumer purchasing decisions, with 40% of shoppers open to using AI for automated recommendations. Nonetheless, data privacy concerns remain, as 56% of consumers hesitate to share personal information.
The report emphasises the importance of an omnichannel approach, noting that online sales currently account for 36% of total T&D revenue globally, with significant contributions from regions such as China and Europe.
