Table of Contents
Executive Summary
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- Demand is shifting to devices that are mobile, flexible and connected
- Device connectivity is starting to play a role in purchase decisions
- Consumers want new tech, but do not want to move too fast
- Brand trust is vital to succeed in the digital hardware market
- Smart speakers have potential, but multiple hurdles to overcome
- What it means
The Market – What You Need to Know
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- Digital hardware purchases are not a priority for Canadians
- Canadian households are getting smaller, but there are more of them
- Tech news is going mainstream
- Digital hardware is an integral part of consumers’ leisure time
- The impact of online shopping trends on digital hardware retail
Market Factors
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- Digital hardware purchases are not a priority for Canadians
- Canadian households are getting smaller, but there are more of them
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- Figure 1: Canadian private dwellings volume and average size, June 2019
- Tech news is going mainstream
- Digital hardware is an integral part of consumers’ leisure time
- The impact of online shopping trends on digital hardware retail
Key Players – What You Need to Know
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- Companies are creating product ecosystems to drive loyalty
- Smart home products are building good momentum
- Data breaches are putting privacy front and centre
- The risks of planned obsolescence in the long run
- Digital hardware will experience moderate, but consistent evolution
- Gaming console wars are heating up for 2020
- Retro tech is making a comeback
What’s Working?
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- Companies are creating product ecosystems to drive loyalty
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- Figure 2: Google Nest Hub | Help at home, October 2019
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- Figure 3: Amazon Instagram post, September 2019
- Smart home products are building good momentum
Challenges
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- Data breaches are putting privacy front and centre
- The risks of planned obsolescence in the long run
What’s Next?
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- Digital hardware will experience moderate, but consistent evolution
- Gaming console wars are heating up for 2020
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- Figure 4: PlayStation Twitter post, October 2019
- Figure 5: Oculus Quest | Pre-Order, May 2019
- Retro tech is making a comeback
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- Figure 6: Nokia Instagram post, November 2017
The Consumer – What You Need to Know
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- Device ownership
- Purchase factors for new technology
- Consumer interest in emerging technology
- Attitudes towards tech ownership and purchases
- An assessment of the smart speaker market
Device Ownership
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- A shift from traditional tech items to mobile and streaming devices
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- Figure 7: Household technology ownership, August 2019
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- Figure 8: TV ownership, by age, August 2019
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- Figure 9: 2019 QLED 8K Official TVC: One giant leap for reality | Samsung, April 2019
- Figure 10: Home video equipment ownership, by age, August 2019
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- Figure 11: Pottery Barn Instagram post, June 2019
- Figure 12: Prefer to watch video on computer/mobile device vs TV (% any agree), by age, August 2019
- Audio trends are showing a similar shift to mobility and flexibility
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- Figure 13: Home audio ownership, by age, August 2019
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- Figure 14: Personal audio ownership, by age, August 2019
- New personal devices are emerging as others become niche
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- Figure 15: Personal device ownership, by age, August 2019
Purchase Factors for New Technology
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- Core factors remain consistent: price, reviews and word of mouth
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- Figure 16: Purchase factors for new technology, August 2019
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- Figure 17: Purchase factors for new technology, by age, August 2019
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- Figure 18: Purchase factor: connectivity with devices I already own, by age and household income, August 2019
- The tech landscape is becoming more challenging for in-store retailers
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- Figure 19: Purchase factors: online vs in-store information, by age, August 2019
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- Figure 20: Prefer to purchase technology online rather than in-store (% any agree), by age, August 2019
Consumer Interest in Emerging Technology
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- Consumers are looking to get smart and go wireless
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- Figure 21: Tech devices expected to buy one day, August 2019
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- Figure 22: Meet the new Google Pixel Buds, October 2019
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- Figure 23: Ownership and expected ownership of wireless headphones/earphones, by age, August 2019
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- Figure 24: Expect to buy smart devices, by age, August 2019
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- Figure 25: Smart Home – Lights – Central – EN, October 2019
- Consumers are hesitant to move too quickly
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- Figure 26: Tech devices consumers will never buy, August 2019
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- Figure 27: Will never buy a VR headset, by age, August 2019
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- Figure 28: Will never buy a foldable smartphone, by age, August 2019
Attitudes towards Tech Ownership and Purchases
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- Brand plays an important role in the tech industry
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- Figure 29: Prefer to buy tech from brands I trust even if it costs more (% any agree), by age and household income, August 2019
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- Figure 30: Prefer to buy tech from brands I trust even if it costs more (% any agree), by race, August 2019
- The relevance of extended warranties in today’s digital age
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- Figure 31: Extended warranties are generally worth buying (% any agree), by age, August 2019
- Many consumers like to stay up to date on new technology
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- Figure 32: Stay informed about new technology (% any agree), by age and gender, August 2019
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- Figure 33: Stay informed about new technology (% any agree), by kids in household and gender, August 2019
An Assessment of the Smart Speaker Market
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- Comparing ownership to purchase intent
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- Figure 34: Ownership and purchase intent of voice-controlled smart speakers, August 2019
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- Figure 35: Ownership and purchase intent of voice-controlled smart speakers, by age, August 2019
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- Figure 36: JBL Instagram post, December 2018
- Figure 37: Ultimate Ears BOOM 3 + MEGABOOM 3 – Ultimate Waterproof, August 2018
- Figure 38: Marshall Instagram post, September 2019
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- Figure 39: Voice-controlled smart speaker vs Bluetooth speaker ownership, by age, August 2019
- Many people are not comfortable using voice commands
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- Figure 40: Comfortable using voice commands to control devices (% any agree), by age, August 2019
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- Figure 41: Comfortable using voice commands to control devices (% any agree), by race, August 2019
- Consumers are hesitant to trust artificial intelligence
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- Figure 42: Attitudes towards artificial intelligence (% any agree), August 2019
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- Figure 43: I trust artificial intelligence: strongly agree vs strongly disagree, by age, August 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
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