Lately we’ve been talking about artificial intelligence. For example, Who has wondered how consumer technology (or consumer electronics, if you prefer) is going in Italy? That is, technology at the service of large-scale consumption, and therefore used for work or entertainment. It is represented by a large variety of products, including smartphones, computers and various devices but also consoles, televisions, radios, satellite navigators, smartwatches, small and large household appliances…
An analysis by GfK tells us this. We will then discover from another report that artificial intelligence itself is going against the trend compared to the decline in consumer technology in Italy.
Consumer technology in Italy in 2023: the GfK report
The report on consumer technology in Italy in 2023 was published on Thursday 1 February on the website of GfK, the largest German market research institute and one of the largest in the world, founded in 1934.
The company continuously collects consumer electronics sales data in over 70 countries. And, we read in the report, “the data contained in this press release is based on the sell-out data of the main online and offline brands active on the Italian market during 2023.”
Numbers decreasing
We discover from GfK’s analysis that consumer technology in Italy in 2023 recorded disappointing numbers.
Not only is there a drop in turnover, but it is also more significant in percentage terms than that of the last two years. In fact, the sector recorded a 6.4% decrease, bringing the overall value of the market to 16 billion euros. Worse than 2022, when the drop compared to the previous year was 2.7%. And even worse than 2021. However, the market value is better than 2020, when the market value was 15.5 billion euros.
However, it must be said that if instead of the value we consider the units sold, the percentage gets even worse, and goes from -6.4 to -7.3%.
The decline affected both traditional sales points (which recorded -7.1%) and the online channel (-4.4%), which weighed on the total by 26.8%.
The percentages sector by sector
Consumer technology in Italy is therefore declining in almost all sectors. The only exceptions are large household appliances (+3%) and small ones (+0.3%).
Telephony fell by 2.2%, even though it was confirmed as the most important sector in terms of turnover generated.
Strictly consumer electronics (TV, home theater…) even recorded a -28.7%after the exploits of 2021 and 2022 thanks to the digital terrestrial switch-off and the TV bonuses and TV scrapping bonuses.
The Information Technology/Office, photo and home comfort sectors also fell, with a drop in the value of sales of -8.6, -6.9 and 2.8% respectively.
A comforting read
The numbers for consumer technology in Italy in 2023 certainly don’t look the best.
But GfK, looking further back, gives a partially comforting reading. In fact, we read in the report: “The sector is experiencing a phase of slowdown in demand, due both to the saturation effect resulting from the record sales recorded in the years of the pandemic, and to consumer concerns linked to the high cost of living and international crises.
If we move the time perimeter and compare the data with those of 2019, i.e. with the pre-pandemic period, 2023 records an increase in turnover of +8.3%.”
Artificial intelligence is growing rapidly
The GfK report ends with a somewhat prophetic wish: “The real challenge in 2024 will be the increasingly massive introduction of artificial intelligence in many sectors of consumer technology, as recently revealed at CES in Las Vegas, with the hope that these innovations can give a positive impulse to the market” .
And if we talked about prophetic omen, it is because another very recent report confirms the great growth of the Artificial Intelligence market in our country.
Research by the Artificial Intelligence Observatory of the School of Management of the Polytechnic of Milan, also presented on 1 February, tells us that AI in Italy recorded a +52% in 2023, reaching a value of 760 million euros.
Furthermore, it has been calculated that within 10 years the new capabilities of AI-based machines could do the work of 3.8 million people.
For now, projects related to generative AI are only 5% of the total. And, curiously, as many as 77% of Italians (compared to 73% in 2022) fear artificial intelligence. And who knows, maybe the percentage has grown precisely because of the “fault” of generative AI. However, it should be added that only 17% of those interviewed are against the entry of artificial intelligence into professional activities.
