NielsenIQ unveils 2025 tech & durables growth trends

NielsenIQ (NIQ) has announced the release of its report titled The State of Tech & Durables, analysing trends and macro drivers expected to influence growth in the sector by 2025.

The report identifies product innovation, touchpoints, and business model changes as key areas for growth. As part of its insights, it notes the stabilisation of consumer spending in the Tech & Durables (T&D) industry following the COVID-19 slump, with sales volumes increasing by 1% during the first half of 2024, despite a 1% decrease in sales revenue within the same period.

Julian Baldwin, President for Tech & Durables at NIQ, commented, "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. 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."

The report highlights that 67% of consumers are inclined to try new products if priced affordably, with affordability and sustainability playing critical roles in purchasing decisions. The support for energy-efficient products holds strong with 70% willing to purchase, while a desire for durability is evident, with 61% of consumers surveyed expressing willingness to pay more for longer-lasting devices.

Convenience and multifunctionality appear significant, as seen in the 55% growth in sales of robot vacuums that offer both wet and dry functionality. As noted, "Sales of robot vacuums with wet and dry capabilities grew by 55% combining automated convenience and functions to save consumer time, solving daily tasks." This trend underlines consumer readiness to pay premium prices for products like robotic vacuum cleaners and lawn mowers, which show intentional consumer spending patterns.

Performance and connectivity continue to be pivotal, with smartphones comprising higher storage capacities seeing marked growth. Smartphones with 256GB storage saw a 33% increase in the first half of 2024, with a general 3% uptick noted in smartphone sales overall. The integration of smart features in everyday products, such as smart intruder security or thermostatic controls, further showcases this trend.

Health, hygiene, and wellbeing also play a role, with a reported 3% rise in fitness-oriented wearable device sales. The increasing reliance on AI to guide purchasing decisions reflects transformational potential for retailers, with 40% of consumers open to automated recommendations, notwithstanding privacy concerns where 56% are hesitant to share personal data.

The shift towards omnichannel retail strategies is another focus, with online sales making up 36% of all T&D revenue globally. China leads in these figures, accounting for 50% of total sales, while Europe and Latin America display 40% of comparable revenue.

The report further predicts AI-driven innovation to appeal largely to younger demographics, particularly Millennials and Gen Z. As technology evolves, NIQ suggests that brands should diversify offerings to accommodate different consumer comfort levels with AI.

NIQ's Tech & Durables report provides strategic insights aimed at helping businesses align their growth strategies in anticipation of these changes, reinforcing the significance of innovation in meeting evolving consumer demands.