Spending on technology is expected to keep rising, and is projected to reach $1.69 trillion this year, which is 5.3 percent higher than last year.
The International Data Corporation (IDC) has released its semiannual Worldwide Connected Consumer Spending Guide, which shows that technology spending will stay strong through 2023, reaching $2.06 trillion with a five-year compound annual growth rate (CAGR) of 5.1 percent.
"Advances in technology continue to drive what 'convenience' means today and in the future for connected consumers,” said Stacey Soohoo, research manager with IDC's Customer Insights & Analysis group. “Ranging from consumer robots for household cleaning and maintenance to smart lighting or home security/monitoring systems, connected consumers are adopting these solutions in their homes and everyday lives as they go through their own digital transformation."
Most of the spending – about 75 percent – will be on traditional technologies and mobile phone services, specifically voice and data. Smartphones and personal computing devices will make up the rest. Spending growth for traditional technologies will have a CAGR of 2.2 percent.
"Meanwhile, companies are exploring new opportunities to interact with their consumers, finding the right mix of personalization and functionality to provide frictionless experiences," Soohoo said. "Technology providers are also blending digital and physical experiences, and this includes an evolving area and new addition to IDC's Worldwide Semiannual Connected Consumer Spending Guide: on-demand services.
“On-demand services enable access to networks, marketplaces, content and other resources in the form of subscription-based services, including services like Netflix, Hulu, Spotify and others,” she continued. “As connected consumers juggle multiple services across their devices, it is essential for technology providers to understand how the adoption of these various technologies and services will impact their consumers’ experience in the future."
New technologies like augmented reality and virtual reality headsets, robotic systems, wearables, smart home devices and drones are projected to grow with a five-year CAGR of 13.2 percent.