NielsenIQ anticipates a significant growth in global Consumer Tech & Durables (T&D) sales, predicting they will reach $1.29 trillion by 2025, driven by emerging markets, replacement cycles, and premium innovation. In the Middle East & Africa, the market is expected to grow by about 2% to $68 billion. In South Africa, the T&D sector is likely to be influenced by volume-driven purchases and a focus on value for the remainder of 2025.
According to Zak Haeri, managing director for South Africa, two main dynamics are influencing price pressures: the entry of disruptive Chinese brands offering competitive products across various price points, and a shift in consumer behavior towards value-oriented spending. South African consumers are increasingly prioritizing durability, quality, convenience, personalization, and affordability in their purchases.
Key trends for 2025 in South Africa include a need for compelling reasons to upgrade tech products, as many segments are saturated with consumers holding onto their devices longer. Chinese brands are intensifying competition, particularly in the television and smartphone markets, by offering superior features at lower prices. Promotional events continue to significantly impact sales, with major retail events like Back to School, Winter Sales, Christmas, and Black Friday dominating the calendar.
In the smartphone market, the prepaid segment is expanding due to value offerings, while the postpaid segment is declining, particularly in the premium market. The smartwatch market is contracting, with entry-level models gaining popularity. The panel television market is also shrinking, but opportunities remain in certain screen sizes, despite increased competition from Chinese brands. Gaming monitors, however, are experiencing growth.
