You'll be spending more on tech in next 5 years, warns Euromonitor
British market research firm expects the tech sector's retail value to more than double by 2021 to US$45 billion
You're likely to shell out more cash for consumer electronics over the next five years as connected hardware grows in popularity, according to Euromonitor.
The market intelligence firm noted that a shift in consumer preferences will boost both sales value and volume of high-end products such as smart wearables and LCD televisions by 2021.
"Consumers are much more sophisticated and thus, their expectations have risen too," explained Loo Wee Teck, Euromonitor's head of consumer electronics.
For example, consumers made do with General Packet Radio Service (GPRS) and third generation (3G) internet data speeds in the past but they are now demanding for Long-Term Evolution (LTE) services for high speed access, he noted.
Here are some of the products expected to be in hot demand by 2021.
Retail value of this sector is projected to hit US$45 billion in 2021, versus the estimated US$18.7 billion for 2016, Euromonitor found.
"The appeal of wearables extends beyond the niche demographics of techies and fitness enthusiasts. Consumers are buying wearables as fashion accessories and to look cool," noted Loo.
Smart wearables in particular, which include the Apple Watch, are poised to reap healthy sales.
"Value sales of smart wearables are expected to be worth more than five times as much as activity wearables by 2021," Loo said.
Unlike their smart counterparts, activity wearables such as the Fitbit fitness trackers only boast one function and don't allow for installation of third-party apps.
Sales of wireless speakers are projected to reach 73 million units by 2021, a whopping 25 per cent growth between 2016-2021.
Wireless speakers still remain a relatively niche product compared to more in-demand items like smartphones, but the product's growth isn't based on quantity.
"For consumers who buy wireless speakers, the quality of the speakers will be a primary purchase criterion. Established brands like JBL and Bose stand to benefit, as consumers are willing to fork out a higher price for proven quality," said Loo.
Retail value sales of LCD TVs are set to outperform volume sales by 2018, the report noted.
"The push for ultra-high-definition (HD) is paying dividends for TV manufacturers, as consumers are easily sold on the pretext that more pixels, i.e. higher resolution, equates to better video quality," explained Loo.
Declining cable TV subscriptions and the explosion of internet television isn't expected to derail LCD TV growth either, he added.
"The fact that consumers are watching more shows on their mobile devices will also help sales as consumers have acquired the habit of multiscreen viewing."