NielsenIQ has unveiled The State of Tech & Durables, a report on Tech & Durables (T&D) Industry identifying macro drivers for 2025 growth. The report highlights the developments that T&D manufacturers and retailers can focus on in 2025 to drive volume and value growth. These include innovations around products, touchpoints and business models, as key drivers for enhancing consumer experiences in 2025.
T&D sales figures have varied across sectors through 2024, but overall performance has stabilized from the post COVID slump, laying the foundation for improved sales in 2025. Consumers are buying (sales volume across T&D globally grew 1% in the first half of the year) but are prioritizing affordability and value (sales revenue in that same period was down 1%).
“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 customized to their needs,” said Julian Baldwin, President for Tech & Durables, NIQ.
Product innovation focused on convenience, performance, health, user-centered design, and sustainability will be key in 2025. Our latest report harnesses the very latest analysis and projections of our experts across T&D, innovation, consumer behavior, omnichannel, and market measurement teams.”
Macro drivers for 2025 T&D growth:
- Affordability and value for money: 70% of consumers would purchase an affordable product if it was sustainable and energy efficient. Durability also matters, 61% would pay a premium for a phone with a longer life span (gfknewron®Consumer).
- Convenience and multifunction: Convenience is the third most important factor associated with getting value from or product or service:
- Sales of robot vacuums with wet and dry capabilities grew by 55% combining automated convenience and functions to save consumer time, solving daily tasks.
- Intentional consumers are willing to pay a premium for products with robotics as a key feature with a quarter of vacuum cleaners sold and 21% of lawn mowers sold being robotic.
- Performance and Connectivity: Mass adoption is achieved with smart connected products having visible consumer benefits addressing their daily needs.
- Smartphones with 256GB storage grew by 33% in 1H 2024 while overall smartphones sales grew by 3%.
- Smart robot cleaners, smart intruder security, and thermostatic controls are leading sales volumes within their product categories in 2024.
- Health, Hygiene, and Well Being: Smart Healthtech is growing as it is integrated into everyday lives of millions of consumers:
- Sales of wearable devices were up by 3% first six months of 2024 compared with year prior
- AI Innovation: AI will lead transformative sales potential for manufacturers and retailers
- Data privacy is key as 56% of consumers are hesitant to share personal information due to privacy concerns.
- AI used to simplify decision making, can increase consumer spending with 40% of shoppers willing to accept automated recommendations.
- Omnichannel is key: Online sales account for 36% of all T&D revenue globally, with China leading online sales, accounting for half of total sales. Europe and Latin America have 40% of total revenue.
As we look forward to 2025, the right innovation plays a critical role in delivering value and services to consumers by addressing their demand for convenience, performance, health, user- centered design, and sustainability.
AI will be driving innovation with AI-centered products and services appealing to younger, tech savvy consumers – over one-third of Millennials and Gen Z would buy products after interacting with them via augmented reality. T&D brands must offer diverse experiences that cater to various age groups and AI trust levels.
