28 May 2019

New IDC Report Expects Asia/Pacific* Consumer Spending on Technology to Reach USD 468.8 Billion in 2019, Led by Communication and Entertainment Focused Use Cases

SINGAPORE, May 29th, 2019 – Asia/Pacific* consumer spending on technology will reach USD 468.8 billion in 2019, an increase of 4.2% from the year, according to the inaugural release of the IDC Worldwide Semiannual Connected Consumer Spending Guide. Consumer purchases of traditional and emerging technologies will showcase its rise over the forecast period (2018-22), with a five-year compound annual growth rate (CAGR) of 4.0%.

“Connected experiences are diversifying into new touchpoints. Use cases such as communication, entertainment, home automation, managing personal well-being and lifestyle now spreads across devices such as mobile, tablet, smart speaker, and robot. Digital journeys will be fragmentized as new devices proliferate, and organizations will be expected to string these touchpoints into coherent experiences,” said Lawrence Cheok, Senior Research Manager at IDC Asia/Pacific.

Traditional technologies including personal computing devices, mobile phones, and mobile telecom services will account for more than 97% of all consumer spending in 2019. Mobile phones will represent more than half of this amount throughout the forecast, followed by mobile telecom services. Traditional technologies spending is projected to grow relatively slow with a CAGR of 3.4% during 2018-22.

On the flip side, emerging technologies, including AR/VR headsets, drones, robotic systems, smart home devices, and wearables, will deliver strong growth with a five-year CAGR of 28.2%. IDC expects nearly 5% of all consumer spending will be for these emerging technologies by 2022. Smart home devices and smart wearables will account for more than 46.3% of the overall spending on emerging technologies in 2019. Smart home devices will also be the fastest growing technology category with a five-year CAGR of 38.0%.

Communication and Entertainment are the two largest use cases for consumer technology, representing nearly 70% of overall spending in 2019. Traditional voice and messaging services joined by social networking and video chat are the drivers of communication use case. Entertainment use case led by photo or video sharing/editing followed by listening to music and downloading and play online games. However, augmented reality games use case will see the fastest spending growth with more than 100% CAGR and home automation (82.3% CAGR) during the forecast period.

“In the millennial’s era, we see the smartphone expanding beyond voice calling and social media. From a technology standpoint, we are seeing more consumers use smartphones to manage day-to-day activities from a smart TV to home automation,” said Ritika Srivastava, Associate Market Analyst at IDC Asia/Pacific.

“From a geographical standpoint, adoption of connected technologies in Asia/Pacific* varies as countries like China, South Korea, and Singapore are ahead of the curve in the connected consumer ecosystem. Meanwhile, India and Vietnam are gaining momentum in terms of adoption,” adds Srivastava.

The Worldwide Semiannual Connected Consumer Spending Guide quantifies consumer spending for eighteen technologies in nine categories across nine geographic regions. The guide also provides spending details for 24 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.

For more information about IDC's Spending Guides, please contact Monika Kumar at mkumar@idc.com.

About IDC

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

*excluding Japan