Tech industry outlook: How AI, Windows Refresh, media tablets, and gaming present opportunities
Gaming products keep up their success story in 2024 while AI PCs and media tablets represent areas for growth
Gaming products continue to thrive in 2024, mirroring the growing popularity of gaming as a lifestyle. Even though the market has faced a downturn in gaming, with Mobile PC revenue declining 10% (in USD), these devices continue to outperform the market growth of non-gaming PCs. The rising adoption of gaming is also evident in the high revenue growth (13% in USD) of monitors with refresh rates of 120Hz and above.
Meanwhile, the demand for gaming peripherals like keyboards and mice continues to rise, recording positive revenue growth of 7% and 10% respectively. The increasing demand for peripherals is driven by a preference for cordless Bluetooth keyboards (+43%) and mice (+32%), and compact form factors for keyboards (+23% revenue growth for devices with a tenkeyless layout).
Mobile PCs: Windows refresh and Artificial Intelligence (AI) to provide growth opportunities
The outlook for mobile PCs is promising with a return to growth expected due to the upcoming Windows refresh and advancements in AI.
The scheduled discontinuation for Windows 10 support is expected to boost the IT market as many consumers and businesses still use these older Windows versions. Windows 12 will have additional hardware requirements which older devices might not be able to meet. Moreover, the new Windows version is expected to integrate advanced AI capabilities which corresponds with manufacturers’ efforts to drive sales with AI PCs. These are specifically designed to efficiently handle AI & machine learning tasks, and are equipped with specialised hardware such as neural processing units (NPUs) in addition to CPUs and GPUs.
For the moment however consumers remain relatively unaware of the benefits with only 22% of Germans confirming they have heard of AI PCs. With tailored messages showing tangible benefits and solutions, AI awareness and willingness to buy will improve significantly.
Media Tablets: A “bright spot”
While Mobile PCs have not yet returned to growth, Media Tablets stood out with a positive demand in units (+14%) and revenue (+3% in USD). Their success was driven by demand for better specs: Bigger 9-inch screen sizes (+5% in USD) and devices with 8 GB RAM (+14% in USD).
Even though demand for better performance has driven the market, most consumers see Media Tablets as a reasonably-priced alternative to Mobile PCs which can be used for lighter tasks like watching videos or web browsing.