Countries and companies around the globe have implemented sweeping measures to combat the effects of the novel coronavirus. As the world comes together — virtually — to flatten the curve of COVID-19’s contagion, industries prepare themselves for the ramifications of these challenging times.
Content consumption, online ordering services and digital health apps have seen upticks in use as consumers shift their behaviors and cocoon at home. Meanwhile, household spending priorities, overshadowed by economic uncertainties, may affect the performance of other tech areas.
The Consumer Technology Association (CTA)® Special 2020 Industry Forecast Update: Assessing COVID-19 Impact projects how the COVID-19 pandemic will impact sales of key consumer technology categories and highlights technologies that are well positioned to meet challenges in the months ahead.
While some companies have continued to announce releases of new smartphones, sales may see a downturn year-over-year as budget-conscious consumers reconsider switching to newer mobile phones until after the pandemic.
Long-awaited new 5G developments may also be held back until the economy rebounds, extending consumers’ anticipation for the promised network speeds perfect for at-home streaming needs.
As workers and students prepared for telework and remote learning at the outset of COVID-19, laptops saw a surge in demand.
Though supply and manufacturing shortages resulted in a forecast for a decline in sales, those decreases may be offset by demand from schools as they equip students with laptops in the Fall, in preparation for ongoing disruptions from the epidemic. Of all computing products, laptops will weather the pandemic better than tablets and desktops, which will see accelerating declines in the face of lower consumer spending.
To meet the needs of increased time spent watching TV, households may upgrade their primary sets or purchase more TVs to accommodate additional viewers in the home. However the shifting economy will blunt excitement for TV upgrades over the course of 2020.
According to CTA’s report COVID-19 Impact Study: Use of Technology at Home, many consumers are watching TV and streaming videos more often than they typically do, and more than a quarter of those surveyed also noted trying a new video streaming service.
New stay-at-home behaviors may accelerate the popularity and adoption of video streaming platforms over traditional channels, which is reflected in a positive forecast for the streaming market.
The launch of new video streaming services such as Quibi, whose CEO Meg Whitman keynoted CES 2020, also adds options for home entertainment.
Technologies such as telemedicine and apps for fighting social isolation have already stepped up to the plate to curb the effects of COVID-19. Robots are delivering food and necessities to frontline workers, and videoconferencing tools are being deployed for telework.
The consumer technology industry is resilient, thriving on the spirit of innovation to address society’s most pressing challenges. Despite the current crisis, or by facing it head-on, many tech areas are poised for growth. Intertwined with daily life, technology can adapt and emerge as a leading sector in the post-pandemic world.
Explore 2020 economic considerations and in-depth performance expectations in the full report.
In this special update to the semiannual forecast, CTA quantifies the impact that the COVID-19 pandemic will have on core consumer technology products and services, providing an early glimpse of how the virus will affect U.S. industry demand in 2020.