09 Dec 2019
New IDC Connected Consumer Spending Guide Projects Asia/Pacific* Spending to Reach USD 556.3 Billion in 2019
SINGAPORE, December 10, 2019 – Asia/Pacific* consumer spending on technology is estimated to reach $556.3 billion in 2019, recording year-on-year growth of 3.7% over 2018. According to the latest IDC Worldwide Semiannual Connected Consumer Spending Guide, rise in consumer technology spending is driven by consumer purchases of traditional and emerging technologies which is expected to grow at a five-year CAGR of 6.1% during 2018-23, reaching $721.2 billion by 2023
Over 80.6% of the consumer technology spending is accumulated from traditional technologies in 2019. Out of which, mobile telecom services are leading with 38.0% followed by mobile phone and personal computing device. However, traditional technologies are expected to experience relatively sluggish growth at a five-year CAGR of 3.8% over the forecast period (2018-23).
On the contrary, emerging technologies that includes AR/VR headsets, drones, on-demand services, robotic systems, smart home devices, and wearables, will deliver strong growth with a five-year CAGR of 14.8%. This growth will enable emerging technologies to capture nearly one fourth of the consumer spending by 2023. Smart home devices and on-demand services will account for roughly 87.1% of emerging technologies spending.
Entertainment and Communication are the two largest and most focused use case categories for consumer technology accounting for 71.2% of all spending throughout the forecast. Entertainment spending will be often garnered by watching or downloading TV, videos and movies, as well as listening to music, and downloading and playing online games. Whilst, communication spending will go toward traditional voice and messaging services. The use cases that will see the fastest spending growth over the forecast period are augmented reality games and Aerial photography and video with highest compound annual growth rates.
As technology has become more approachable and affordable to millennials, they have raised their living standards and choices throughout many industries,“ says Ritika Srivastava, Associate Market Analyst at IDC Asia/Pacific. “Asia pacific* connected consumers are a step ahead in taking up and spending on technology to run their everyday lives using different connected devices with a 37.7% share worldwide – among these, smartphones and telecom services as the most used technologies. IDC’s newly introduced “on-demand services“ (subscription-based services) presents a comprehensive outlook of customer experience and their reach to networks, marketplaces, content including Netflix, Amazon Prime, and Spotify. As a result, businesses and enterprises accountability towards satisfying the consumer’s demands – respecting generational preferences – can be addressed to boost the future of their businesses,” adds Srivastava.
The IDC Worldwide Semiannual Connected Consumer Spending Guide quantifies consumer spending for 22 technologies in ten categories across nine geographic regions. The guide also provides spending details for 23 consumer use cases. Unlike any other research in the industry, the Connected Consumer Spending Guide was designed to help business and IT decision makers to better understand the scope and direction of consumer investments in technology over the next five years.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.
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