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08/31/2022

NPD: Home Electronics Sales Expected To Slow

Following two years of strong growth, The NPD Group expects consumer demand in the category to be down through the end of 2022 and into 2023.
Greg Sleter
Associate Publisher/Executive Editor
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Televisions are expected to be a bright spot as consumer demand softens for home electronics.

The wave of growth enjoyed by the home electronics segment may be coming to an end, according to a new report from The NPD Group.

In its Future of Technology forecast, NPD expects 2022 and 2023 will see 6% and 3% year-over-year revenue declines, respectively. The upcoming holiday season is also expected to see a sales slowdown when compared to 2021. 

“For the last two years consumers have relied on technology products to make their lives more comfortable and convenient while many worked, learned, and entertained mostly from home,” said Paul Gagnon, vice president, industry advisor for NPD. “Rather than waiting for promotions, or in some cases specific products, they bought what was available when they needed it. But as consumers return to more ‘normal’ behaviors and schedules we are seeing a shift back to pre-pandemic purchase patterns and believe consumers will once again be seeking out holiday deals this Q4.”

While strong sales in 2020 and 2021 pulled demand forward in a number of categories and will contribute to near-term declines for sales of computers, bright spots for holiday 2022 will include TVs, tablets, true wireless headphones, and home automation products. Television unit sales are expected to return to growth in Q4 with year-over-year unit sales up 9% as prices fall and deeper promotions are expected. Declining average selling prices will also fuel unit growth in tablets, up 11%, and true wireless headphones, up 3%. 

Home automation is another category expected to see growth, with holiday unit sales expected to rise 5% above 2021, said Ben Arnold, executive director and technology industry analyst for NPD.

“Smart doorbells and item trackers will be areas of growth in Q4, as consumers leverage holiday promotions as a reason to enter the category,” he said.