Gartner Says Consumers Will Spend $2.1 Trillion on Technology Products and Services Worldwide in 2012
STAMFORD, Conn., 26 July, 2012 — Consumers will spend $2.1 trillion worldwide on digital information and entertainment products and services in 2012, according to Gartner, Inc. This amounts to a $114 billion global increase compared with 2011, and spending will continue to grow at a faster rate than in the past, at around $130 billion a year, to reach $2.7 trillion by the end of 2016.
The $2.1 trillion consists of consumer spending on mobile phones, computing and entertainment, media and other smart devices, the services required to connect these devices to the appropriate network, and the software and media content that are consumed via these devices.
"The three largest segments of the consumer technology market are, and will continue to be, mobile services, mobile phones and entertainment services," said Amanda Sabia, principal research analyst at Gartner. "There are two product classes, which in terms of absolute dollars are significantly smaller, but offer tremendous growth by 2016. These are mobile apps stores and e-text content. We fully expect consumers to more than triple their spending in these latter two categories by 2016."
Mobile services are expected to generate 37 per cent of total worldwide consumer technology spending in 2012 — that is $0.8 trillion — rising to almost $1 trillion by 2016. Mobile phones will account for 10 per cent of total spending in 2012 — that is $222 billion — rising to almost $300 billion by 2016. Similarly, entertainment services — cable, satellite, IPTV and online gaming, will account for 10 per cent of total consumer spending on technology products and services in 2012, at $210 billion, rising to almost $290 billion in 2016.
Gartner predicts that consumer spending on mobile apps stores and content will rise from $18 billion in 2012 to $61 billion by 2016, and that spending on e-text content (e-books, online news, magazines and information services) will rise from $5 billion in 2012 to $16 billion by 2016.
“Our research consistently shows that consumers are willing to pay for content they deem “worth it”,” Ms Sabia said. “However, our research has also found that consumers are willing to tolerate an ad-supported business model in exchange for free functions and content such as personal cloud storage, social networking, information searching, email, IM, person-to-person (P2P) voice (Skype and mobile voice over IP [VoIP]), streaming/downloading video and musical content when accessing the Internet."
The inter-relationships among the various segments are getting more critical. For example, new multidevice rate plans being announced by US mobile carriers are enabling consumers to get more from their devices. These persistent connections to more phones, tablets and mobile PCs will increase the value of entire ecosystem and will drive hardware sales. Partnerships among vendors in different segments are needed to build the bridges among the various platforms and deliver simpler solutions.
Additional information is available in the Gartner report "Market Trends: Worldwide Consumer Tech Spending." The report is available on Gartner's website at http://www.gartner.com/resId=2058016
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in 12,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 5,200 associates, including 1,280 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com