10 technology trends driving the transformation of consumer behaviors and markets

As digital transformation takes root in the consumer ecosystem, companies must extend and deepen their relationships with consumers to better understand their wants, needs and aspirations.

“Technology is bringing huge changes to the way consumers live their lives, and technology companies, from hardware vendors and developers to service and infrastructure providers, need to think seriously about the impact of these changes on their future offering.”said Tom Mainelli, group vice-president. Chairman of Hardware and Consumer Research at IDC. “IDC believes that organizations need to redefine their mission to be more relevant to the individual in order to pursue a successful future. This new approach requires rethinking the operating models and cross-functional business models of the company to better understand and enable collaboration and collaboration with neighboring companies and industries. »

To that end, IDC has identified 10 technology trends – plus a bonus eleventh! – that support the transformation of consumer behavior and markets:

  1. New pricing and business models – subscriptions, packages and loyalty: Hardware products, in addition to media and services, are moving towards a subscription model.
  2. About body ecosystems – phone + wrist / hand + ears: Gradually, more and more people will use multiple devices that act as integrated ecosystems.
  3. Wireless and broadband connectivity – 5G, Wi-Fi 6, Bluetooth, WAN and more: Digital connectivity will become more reliable, responsive and hassle-free for a more immersive and immersive experience.
  4. Augmented and virtual reality: Retailers have struggled to develop augmented reality and virtual reality that consumers will widely accept. Over the next five years, retailers will crack the improved audio code, fine-tune augmented reality for phones, smart glasses and virtual reality glasses.
  5. A growing range of digital devices to increase productivity: Many people start with a smartphone, and many will start using an integrated digital services platform on their computer, tablet, smart speaker, and virtual office service.
  6. Consumers mix professional and personal devices, services and spaces: the pandemic has accelerated the consumerization trend, as working from home and contactless workflow has led to increased use of personal technology in the workplace.
  7. Smart connected products – body, home, transport, IoT: IoT technology offers a wide range of smart and connected products that improve or modify many experiences, especially in the field of well-being.
  8. Digital/personal cloud services for lifetime, security and privacy: The solutions will help consumers manage the unruly and messy mix of personal services and experiences by streamlining password management, financial monitoring and security services.
  9. Digital media, social media and advertising collide: Consumers benefit from digital streaming and the creative economy while avoiding advertising that challenges business models.
  10. digital currency – Wallets, payments, currencies and crypto: Asian consumers are already bogged down with super-apps for payments, while the pandemic has pushed western consumers from cash to cards, tap to pay and digital wallets, but not to great apps. Many other changes are on the horizon.
  11. AI and ML infrastructure will enable new consumer services: Consumers do not benefit from artificial intelligence and machine learning, but from the fascinating experiences that these technologies make possible. Advances will enable experiences such as selective listening and highly personalized media.

The IDC Future Consumer framework focuses on eight consumer segments: entertainment, housing, travel and dining, personal mobility, money, shopping, lifelong learning, and wellbeing.

IDC recently hired Frank Gillett to lead its Future Consumer Agenda service. In addition to setting the direction of the Future Consumer research agenda, he will work with IDC analysts to illustrate how changes in the consumer landscape will impact consumer-facing businesses, technology providers, and other organizations, and will shape future business and social outcomes. Gillett has 26 years of experience as an industry analyst, most recently as Vice President and Principal Analyst at Forrester Research. He has extensive experience in researching, forecasting and advising on technology innovations that drive new business strategies, service-oriented products, customer behavior and consumer trends.

“Digital transformation is happening across the entire consumer economy, which accounts for two-thirds of all global economic activity. This transformation is creating ever-deeper relationships with consumers, causing disruption and change that will take place. ripple through markets and supply chains” Says Frank Gillet, vice president of research, Future Consumer at IDC. “To understand consumer transformation, IDC will take a holistic approach to go beyond technology and markets. Future consumer services will use a common framework focused on eight consumer activities. they use technology to transform the activities of life.”

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