AI is revolutionizing industries—but will consumers follow?
AI is captivating innovators and market analysts with the potential to revolutionize industries and drive economic growth. While still in the early stages, the spread of AI-ready machines is accelerating. In October/November alone, 43 Percent of global smartphone revenue came from AI-enabled devices. Yet, there’s significant regional diversity: 65 Percent of smartphones in developed Asia are AI-ready, while Latin America lags at 14 Percent.
AI investment is growing, but consumer demand remains low
The industry is heavily investing in AI, but are consumers keeping up? So far, AI is a minor purchase driver. Only 6 Percent of smartphone buyers in Q2 2024 chose their device for its AI capabilities, and only 12 Percent of mobile PC buyers did the same. Despite these modest numbers, there’s strong anticipation that interest will grow.
The Key to Consumer Adoption: Education and Awareness
What will it take to create buzz in consumers’ minds? Education is the missing link. The case of smart speakers offers a telling example: in 2020, 45 Percent of German consumers saw need for them, and sales have since stagnated. By 2023, smart speakers still only accounted for 32 Percent of revenue in Audio Home Systems—the same share as in 2020.
This highlights the importance for manufacturers and retailers to educate consumers on specific use cases and tasks that AI can perform. Only then will AI reach a broader audience and justifies also the call for a premium price.
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Based on a partnership between NIQ/GfK, gfu Consumer & Home Electronics GmbH and IFA Management GmbH, we provide regular information on market developments and trends in the consumer electronics and home appliances industry. Interesting insights, current market figures, consumer trends and much more will be professionally prepared for you from the sources of the three expert partners.
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