Consumer Tech Growth to Slow in 2026 as Demand Shifts to Europe and MEA

NielsenIQ and CTA forecast near-flat global T&D sales in 2026, with regional divergence and value-driven consumers shaping market dynamics.

Global sales in the consumer technology and durable goods (T&D) sector are expected to level off in 2026 following a solid 2025, according to a new market outlook released by NielsenIQ (NYSE: NIQ) in collaboration with the Consumer Technology Association (CTA). The report, published on Jan. 4, 2026, projects worldwide T&D sales of roughly $1.3 trillion in 2025, an increase of 3% from 2024, with 2026 sales value anticipated to hold steady at an estimated -0.4% year over year.

While the global picture is close to flat, the real story lies in regional and sector performance. Consumers remain careful with their spending and prioritize value for money, focusing on products that offer enhanced performance, convenience, energy saving, or durability, the report found. Brands and retailers that align pricing, innovation, and experience with region- and category-specific demand are expected to gain market share.

Regional Growth Diverges

The strongest growth in 2026 is forecast for Eastern Europe (+5%), followed by Western Europe (+3%), the Middle East and Africa (+3%), and Latin America (+2%). North America is expected to hold steady, while Asia-Pacific is projected to decline 3%, with China down 5% due to elevated baselines from recent trade-in subsidy programs.

Julian Baldwin, President of Tech & Durables at NIQ, said in a statement: “In 2025, global Consumer Tech & Durable goods purchases grew by a solid 3%. Growth is expected to slow in 2026, but most regions should remain stable or see modest gains. The exception is China, where elevated baselines from recent trade-in policies will weigh on performance.” He added that the next phase of growth will rely less on broad market recovery and more on how effectively brands tailor innovation, pricing, and features to meet local consumer expectations.

Category Trends and Consumer Drivers

Sector-level trends show small domestic appliances (SDA) growing, IT and office equipment posting modest gains, major domestic appliances remaining stable, and telecom and consumer electronics experiencing slight declines. Replacement cycles for PCs and smartphones, combined with premiumization trends such as AI-native PCs, Mini LED/OLED TVs, built-in appliances, and smart home appliances, are expected to drive demand. The 2026 World Cup provides a boost for TV sales, while open-ear headsets sustain momentum and AI-enabled features with clear use cases offer premiumization potential.

The report emphasizes that value-for-money remains a top priority, meaning product benefits must be both highly relevant and visible to shoppers. Affordability and accessibility are also seen as key factors driving AI adoption globally.

International Context and Policy Factors

The outlook comes amid evolving trade policies, including U.S. tariffs, China’s trade-in programs, and the expanding presence of Chinese brands entering new markets. These factors are reshaping global supply chains and competitive dynamics. The regional projections suggest a rebalancing of consumer demand away from Asia-Pacific toward Europe and emerging markets in the Middle East and Africa, reflecting broader shifts in global economic momentum and trade flows.

Steve Koenig, Vice President of Research at CTA, said: “Despite easing inflation and resilient demand in many regions, risks from tariffs and supply chain disruptions persist. Consumers remain value-driven but are prepared to spend where they see compelling product features. Built-in Artificial Intelligence continues to present strong opportunity as a product differentiator, but adoption will depend on clear use cases that illustrate direct benefits and ROI.”

Verified Analysis

The forecast is based on long-term and current trend data, with an assumption that China will maintain a level of financial support for its domestic market in 2026, though not to the extent seen in 2025. The data does not account for unforeseeable geopolitical shocks or sudden macroeconomic shifts. While the global top-line figure is nearly flat, the regional and category variances present opportunities for companies focused on high-potential markets and product segments.

The collaboration between NIQ and CTA provides a comprehensive view of the T&D sector, combining consumer intelligence with industry expertise. Their analysis highlights that value-driven consumer behavior is expected to persist, but willingness to pay for compelling features, especially AI-enabled ones, remains intact.

Future Developments

Looking ahead to the next two to five years, growth in the T&D sector will increasingly depend on identifying regional opportunities by both volume and value. Policy factors, including tariff structures and subsidy programs, will influence production, pricing, and trade flows. Advances in AI, smart home technology, and energy-efficient appliances are expected to sustain innovation-led demand. Competition from Chinese brands in international markets may intensify, with affordability and accessibility playing a central role in AI adoption.

The global market’s path will be defined not by a broad recovery but by strategic regional focus and consumer engagement. Companies that adapt to local preferences and demonstrate clear product benefits will be better positioned in an environment of moderate growth and shifting demand patterns.

Conclusion

The 2026 Consumer Tech & Durable Goods outlook from NIQ and CTA paints a picture of a market in transition. Following a year of 3% growth, the sector is set for a period of stabilization. Regional divergences, category variations, and consumer emphasis on value will shape competitive strategies. As the industry gathers for CES 2026 in Las Vegas from Jan. 6–9, these insights will inform business planning and investment decisions across the global technology ecosystem.

This article is based on a press release distributed by Business Wire on behalf of NielsenIQ. The information has been reviewed and presented in accordance with GlobeNewsAgency.com editorial standards. Figures and quotations are as provided by the issuing company.