The news: Cost-conscious consumers are heavily scrutinizing product value and brand offerings before making tech purchases.
Despite this buying criteria, NIQ expects the global consumer tech and durable goods market will grow 5.1% YoY in 2026, reaching $1.4 trillion.
NIQ predicts telecom, which includes premium smartphones, will be the market’s growth leader with sales value rising 8% YoY. Smart domestic appliances like vacuum cleaners are adding to the tech division sales increase, with 7% growth.
Digging in: Consumers are no longer upgrading devices as soon as new models are released, adding pressure for tech brands to prove why each new device deserves the sale. Purchases are rising in value but declining in volume YoY, per NIQ.
Simply including AI features may not be enough to create demand. To stand out, AI needs to graduate from an additional feature to a concrete justification for purchase, such as by offering personalization and demonstrable utility beyond surface-level assistance like sending texts or adding events to calendars.
Recommendations for consumer tech marketers: Shift product marketing from stating what’s new to showing what’s worth paying for. This is particularly important with AI-powered hardware, as abstract productivity claims may hold little weight when consumers are holding off on buying tech items.
Develop marketing strategies that can answer key consumer questions about which purchases are worth the price and why they should be bought now to stand out amid disciplined shopping behavior. Marketing long-term benefits like battery life, energy efficiency, or interoperability with third-party software may encourage transactions.
Longer consideration windows add to the importance of search advertising, retail media, customer reviews, and creator demonstrations, especially since value propositions and promotions influence product decisions.
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