Portable audio and home automation category sales will be bright spots in a challenging 2023
TORONTO, April 25, 2023– Following tremendous pandemic-driven sales growth, year-over-year Canadian consumer technology sales are expected to decline in the low single digits through 2025, according to Circana, formerly IRI and The NPD Group. Despite anticipated declines, total market sales revenue in 2025 is expected to remain 7% above 2019 pre-pandemic levels.
Data from the latest “Future of Technology” forecast from Circana reveals that while many technology categories will experience revenue and unit sales declines in 2023, the portable audio and home automation categories are expected to be areas of growth. In fact, portable audio sales revenue in 2023 is anticipated to grow 13%, as unit sales rise 1%. Revenue from sales of true wireless headphones is forecasted to grow 19% this year, adding $115 million in new sales to the market. Home automation sales revenue will also be on the rise this year, growing 7% compared to last year. While unit sales are expected to decline, an 11% increase in average selling prices (ASPs) for the category will comprise most of this growth.
“As more consumers return to workplaces outside the home, and as economic headwinds cause others to cut back on discretionary spending, attention will continue to shift from technology products to industries like apparel and beauty,” said Dave Adamchick, industry analyst, Canada technology, at Circana. “The pandemic also pulled demand forward and disrupted the short-term technology buying cycle. We expect that shift will begin to normalize in 2024.”