Consumer Spending on Digital Devices, Services and Content on the Rise
Consumers worldwide will spend up to $3.4 trillion on digital devices, services and content by 2020, according to an estimate from International Data Corp. The market research firm released its forecast as part of a newly launched research program, Consumer Spending Priorities: Tech and Services, which will analyze "consumer spending across all goods and services, payment methods, and transaction channels for current and emerging technologies."
While total consumer digital spending is going up, the share of spending on devices will actually fall from 28 percent in 2015 to only 22 percent by 2020, according to a statement from IDC. Instead, consumers will focus on digital content, with spending in that area expected to rise 12.6 percent annually. In addition, spending on digital services will grow 4.9 percent annually.
"Clearly the value of the devices is derived primarily as conduits for the content and services that they transport and the applications that they enable," said Jonathan Gaw, research manager for IDC's Consumer Spending Priorities: Tech and Services program, in a prepared statement.
IDC attributes the market changes to the evolving behavior of international consumers. "Much of the change in consumer spending categories is driven by regions outside of the United States, where the shift among spending categories continues but is largely complete and the share of spending by solution type is largely stable," the firm said in a press release. "In developing countries, however, consumer spending on digital content and services, versus devices, is still gaining, while online media spending also increases in wallet share."
For more information on the Consumer Spending Priorities program, visit the IDC site.
About the author: Rhea Kelly is executive editor for Campus Technology. She can be reached at firstname.lastname@example.org.