Deloitte analyses top technology trends for 2014


14-01-2014

The technology, media and telecommunications (TMT) practice at Deloitte today announces its predictions for the technology sector in 2014. This year’s predictions cover a range of topics, highlighting developments around wearable technology, smaller tablets and the converged living room.

Deloitte forecasts that in the first quarter of 2014, the installed base of compact tablets (8.5 inch or smaller screen) will surpass the base of classic tablets (9 inch and larger screen) for the first time.

Ed Shedd, head of Deloitte's UK technology, media and telecommunications practice, comments: “Tablets are getting smaller and by the end of March 2014 about 165 million compact tablets will be in use worldwide, compared to 160 million classic tablets. The widening array of tablet size and price factors may also encourage people to own more than one tablet. In UK, 18% of consumers own both a large and a compact tablet. Getting the balance of form, function and price right that most appeals to consumers is important, especially at the lower end of the market.”

Paul Schofield, technology partner at Deloitte in Cambridge, adds: “Deloitte predicts that smart glasses, fitness bands and watches will sell about 10 million units in 2014, generating £2 billion ($3 billion). Of those, smart glasses should generate most revenues, with sales of about four million units and an average selling price of £300 ($500). Smart fitness bands should sell four million units with an average selling price of £85 ($140); and smart watches should sell about two million units at £120 ($200).”

 Key predictions include:

One became many: the tablet market stratifies

Deloitte predicts by the end of January 2014 more than half of UK consumers will own or have access to a tablet. This is more than 15 percentage points higher than the tablet penetration in June 2013 (36%).

Compact tablets are generally lower-priced, as vendors of smaller tablets are likely to have different business models than those selling larger tablets. The decline in average selling prices for tablets has led to a 50% growth in the base of tablets in the UK, with some 12 million tablets sold in 2013.

Wearables: the eyes have it

Trends such as the ageing of many nations’ populations, widening cellular connectivity and the move towards telemedicine may signal significant opportunities for wearables in the middle- and long-term.  Wearables may serve as sensors that are always in close proximity to the user, and could become a new communications system providing larger images to those with poor sight, or text to speech messages for those with failing hearing.  The combination of sensor, actuator and communicator may prove to be attractive to patient, doctor and insurance company alike.

The Converged Living Room: a plateau approaches

Global sales of smartphones, tablets, PCs, TV sets and videogame consoles will exceed £450 billion ($750 billion) in 2014, up £30 billion ($50 billion) from 2013 and more than double the 2007 total.  However, a plateau appears likely: sales are expected to continue growing, but at a slower rate and lower average selling prices than over the past 10 years, with an estimated ceiling of about £500 billion ($800 billion) per year.

 

For a full copy of the report (launched today, Tuesday 14th January) with all of the Deloitte predictions please email: Selina Abbiss or Christina Underwood or visit www.deloitte.co.uk/tmtpredictions.

The 2014 series of Predictions has drawn on internal and external inputs from conversations with Deloitte’s clients globally, contributions from Deloitte member firms’ 7,000 partners and managers specialising in TMT, and discussions with industry analysts as well as interviews with leading executives from around the world.

About Deloitte

In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited  (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please
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The information contained in this press release is correct at the time of going to press.

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Contact:    Claire Campbell                                           

01223 259357           
clcampbell@deloitte.co.uk

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The Deloitte Cambridge office comprises 8 Partners and over 250 staff who deliver a full range of professional services to the East Anglian region. As well as focussing on the life sciences and technology sectors for which the region has become so renowned, the office has long standing specialisms in other sectors including the professions, consumer business, food and agribusiness.

Deloitte LLP