Development of demand
CES in Las Vegas remains the flagship event that marks the year for the technology market. In anticipation of the 2025 edition, GfK presents a forecast study that reflects the ongoing pressures shaping global tech demand. The 2023 results highlighted a tough year for the global technology and consumer durables market, driven by persistent inflation, market saturation from the pandemic, political tensions, and wary consumer sentiment. These factors contributed to a projected 3 percent decline in the T&D sector versus 2022, according to Ines Haaga, a GfK Insights specialist in Consumer Technology and Durables.
Revenues in 2023 were slightly negative overall but remained above pre-pandemic levels seen in 2019. The gains were concentrated in IT and small appliances, which posted notable increases of 16 percent and 21 percent, respectively, while the Consumer Electronics segment faced a continued downturn.
Development of demand
GfK Consumer Life price sensitivity emerged as a major driver behind purchasing choices in 2023. While many households tightened budgets, higher-income buyers with more resilience to crises also played a critical role, helping premium categories stay above average. Demand for household appliances with life-supporting functions, such as wet and dry vacuums, remained robust, rising by 2 percent through the first ten months of 2023 even as overall vacuum sales slipped by 2 percent. Likewise, lifestyle-focused products like air fryers, favored for healthier cooking, surged by more than 42 percent, outpacing the 38 percent growth seen in standard fryers. Bluetooth keyboards, supporting organized home offices, grew by over 17 percent while general market growth hovered near 2 percent.
These patterns show a clear shift toward products that blend health, convenience, and efficiency with everyday use, as consumers seek value and practical benefits in their purchases.
Predictions for this year
Looking ahead, a return to growth is anticipated in the global T&D market, though at a more modest pace than before. The following trends are expected to underpin 2025 performance:
Substitution cycles are expected to revive after years of decline, particularly in fast-growing segments such as smartphones and laptops. This supports renewed purchases in the telecom category, with premium devices likely to remain a focal point for consumers seeking superior performance and longer life spans.
Long-term sales analyses show that television sales tend to spike ahead of major sports events, suggesting notable boosts around global events like the Olympics and other large championships in 2025. Inflation is projected to ease further, lifting consumer confidence in several regions, though interest rates may stay elevated—posing a hurdle for both households and businesses seeking financing.
Price will continue to influence buying decisions in 2025. Promotional activity from the previous year indicated that offers drive sales, but sellers and manufacturers should emphasize brand value and features that deliver clear value. The goal is to balance pricing with meaningful product advantages, rather than competing on price alone.
[GfK Insights]