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1 Ericsson  |  10 Hot Consumer Trends 2019

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10 Hot Consumer
Trends 2019

An Ericsson ConsumerLab Insight Report


December 2018
2 Ericsson  |  10 Hot Consumer Trends 2019

Contents

Methodology About Consumer & IndustryLab


06 Awareables
This report presents insights based Ericsson Consumer & IndustryLab delivers
07 Smart quarrels on Ericsson’s long-standing consumer world-class research, design concepts and
trends program, now in its eighth year. insights for innovation and sustainable
08 Spying apps
The insights in the report are mainly based business development. We explore the
09 Enforced agreement on an online survey carried out in October future of consumers, industries and a
2018, of 5,097 advanced internet users sustainable society in regard to connectivity
10 Internet of skills
in Johannesburg, London, Mexico City, by using scientific methods to provide
11 Zero-touch consumption Moscow, New York, San Francisco, unique insights on markets, industries
12 Mental obesity São Paulo, Shanghai, Sydney and Tokyo. and consumer trends.
Respondents are advanced internet Our knowledge is gained in global
13 Eco me users aged 15−69, who have an urban consumer and industry research programs,
14 My digital twin early adopter profile with high average including collaborations with renowned
use of new digital technologies. Within the industry organizations and world-leading
15 5G automates society sample, 47 percent use virtual assistants universities. Our research programs cover
(Apple’s Siri, Google Assistant, Amazon’s interviews with over 100,000 individuals
Alexa, etc.) at least weekly, and 31 percent each year, in more than 40 countries
use augmented or virtual reality (AR/VR) – statistically representing the views
every week. of 1.1 billion people.
Correspondingly, they represent only
34 million citizens out of around 183 million
living in the metropolitan areas surveyed,
All reports can be found at:
and a small fraction of consumers globally. www.ericsson.com/consumerlab
However, we believe their early adopter
profile makes them important to consider
when exploring future trends.
Trend 10 also relies on 2017/2018
survey data from Ericsson ConsumerLab’s
analytical platform, consisting of
72,067 smartphone users aged
15–69 in 50 countries. With the much
greater reach of this survey, the trend report
ends by pointing toward the mass market.
3 Ericsson  |  10 Hot Consumer Trends 2019

Welcome to an
automated society

Automation will change the way we live and work

Technology is promising more advantages technology, the speed and reach of As digital technology spreads
than ever before. People want things to automation is now increasing rapidly. throughout society, all these hopes
be cheaper, faster, more convenient and It may already be common in workplaces, and fears simultaneously filter through
delivered to their doors at no extra cost. but what will happen when all of consumers’ minds. The perspectives
Supermarkets without checkouts; society is automated? Will a life made are staggering – and consumer views
clothes shops that take your measurements up of more automated processes still on a near-future automated society are
in seconds and carry out custom tailoring feel human? And what will our place very much the theme of this report.
in minutes; schools with increasing as individuals be when everything is
robotization of teachers and hospitals smarter, more exact and logical?
with non-human doctors; autonomous Automation lends itself to
cars; restaurants with mechanized creating an orderly society, but
menus; galleries showing art made by when conflicting yet autonomous
artificial intelligence (AI); and live music processes happen simultaneously,
performances by algorithmic composers are could it also become more chaotic?
just a few examples of future possibilities. The Ericsson 10 Hot Consumer Trends
Many of these examples may seem like 2019 reveal that people are experiencing
science fiction – but they are nevertheless mixed emotions. Almost half of the
already being realized in society. respondents in the survey think that, for
Automation refers to processes better or worse, the internet has replaced
that are performed without human many of the simple pleasures of daily life.
intervention or assistance. With digital
4 Ericsson  |  10 Hot Consumer Trends 2019

10 Hot Consumer Welcome home,


did you have
a good day?
Trends 2019
No!
Is everything ok?

01. Awareables
Six in ten virtual assistant users think
devices that understand our moods
will be mainstream in three years.

Team Pizza Team Burgers

03. Spying apps 02. Smart quarrels


Forty-seven percent of consumers Thirty-one percent of virtual assistant
think apps collect data about them users believe different smart speakers
even when the apps are not being used. in their homes will argue like families do.

Allow

04. Enforced agreement 05. Internet of skills


Always having to accept More than 50 percent of AR or VR users
data collection cookies annoys want apps, glasses and gloves that give
51 percent of consumers. virtual guidance for practical, everyday tasks.
5 5 Ericsson 
Ericsson 
|  10 Hot
|  10Consumer
Hot Consumer
Trends
Trends
2019 2019

06. Zero-touch consumption 07. Mental obesity


Around half of virtual assistant users want One in three consumers soon expect to go to
automated bills and subscriptions, as well “mind gyms” to practice thinking, as everyday
as self-restocking household supplies. decision-making gets increasingly automated.

09. My digital twin 08. Eco me


Forty-eight percent of AR or VR users Thirty-nine percent of consumers
want online avatars that mimic them exactly, want an eco-smartwatch that
so they can be in two places at once. measures their carbon footprint.

10. 5G automates society


One in five smartphone users believe 5G
will better connect IoT devices, such as
household appliances and utility meters.
6 Ericsson  |  10 Hot Consumer Trends 2019

Awareables

Your devices will soon know you


better than you know your devices.

Welcome home,
did you have
a good day?

No!
Is everything ok?

Your smartphone is likely to contain more Similarly, 52 percent want a smartwatch When devices know us this well, they will
sensors than anything else in your home. that blocks notifications when it also know our secrets. But astoundingly,
Yet advanced technology such as face understands you are busy. twice as many trust an AI device more
recognition is only used for seemingly Forty-seven percent even want an app than a human to keep their secrets.
simple things, such as unlocking your phone. that fact-checks a social media post just
But what about when your smartphone by noticing a surprised look on your face.
becomes fully aware of you; not only of
what you do, but of who you are? Today, Figure 1: Trust in humans and AI among virtual assistant users
AI can already understand your personality
Trust human Trust AI
just by looking into your eyes,1 or by hearing
your voice.
As a keeper of your secrets
Half of those currently using virtual
assistants (Google Now, Alexa or Siri, etc.),
in phones or smart speakers, think that As your insurance consultant
their smartphones will soon understand
their emotions. And 42 percent think As your clothes style advisor
smartphones will soon understand them
better than their friends do. In fact,
As your lawyer
6 in 10 think devices that sense and react
to our moods will be mainstream in 3 years.
When this happens, devices will act As a doctor checking your health
on situations rather than commands.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Imagine that you told your smart speaker
a secret and wanted it to be discreet. Base: Virtual assistant users in 10 cities globally
Fifty-six percent of virtual assistant Source: Ericsson ConsumerLab 10 Hot Consumer Trends 2019
users want a smart speaker that lowers 1
www.frontiersin.org/articles/10.3389/fnhum.2018.00105/full
its voice in such a situation.
7 Ericsson  |  10 Hot Consumer Trends 2019

Smart quarrels

Virtual assistants might argue


just like family members do.

What should I have for dinner?

Pizza

Burgers

Fight!

I win!

Burgers have been ordered, they will be


delivered to your door in 15 minutes.

Family life can often include bickering But would disagreeing assistants really
and trivial quarrels over differing opinions,
and this could extend to the behavior
quarrel? In the same way that people tend
not to talk about strained relationships 47%
of virtual assistants. when in public, people may not want to talk
47 percent of virtual assistant users
What will happen when we let different about the bickering that happens between think different assistants will give
types of virtual assistants, such as Alexa, their devices at home. It could even lead to them different answers.
Google Assistant, Siri and others, into tensions in the home and cause arguments
various devices in our homes? between family members themselves.
It turns out 47 percent of virtual
assistant users surveyed think different
Although only 31 percent think virtual
assistants in their own household would
41%
assistants will give them different answers. start quarrelling with each other like family 41 percent think it will be
In fact, 41 percent think it will be important members – 66 percent believe such family important for couples to
have compatible assistants.
for couples to have compatible assistants. scenarios will be common 3 years from now.
8 Ericsson  |  10 Hot Consumer Trends 2019

Spying apps

Many feel that the apps they use


are constantly spying on them.

$ $ $
$ $ $
$ $
$ $ $ $
$ $ $

It is not uncommon to hear people Many people also feel that they are being
describe a situation where they have been
talking about a certain product only to be
taken advantage of. As many as
52 percent of consumers think popular 52%
confronted by related advertising. Although apps collect more smartphone data than
52 percent of consumers think
there is little concrete evidence that apps needed in order to make profits. This leads popular apps collect more
listen in to your conversations, you may to more than half of consumers trying to smartphone data than needed
have experienced something similar. avoid companies that misuse personal in order to make profits.
As a result, the feeling of having data when they choose services and
someone constantly looking over your products. But even so, more than half
shoulder is becoming almost impossible still worry that apps sell their data to
to shake off. In fact, 47 percent of companies without their permission.
respondents believe many popular apps As a result, 59 percent say we need
use cameras, microphones and location global personal data protection principles.
information to collect data about their The question of individual integrity
everyday behaviors – even when the will continue to rise with the increasing
apps are not being used. digitalization of society.
9 Ericsson  |  10 Hot Consumer Trends 2019

Enforced agreement

Clicking yes to “allow cookies” has


become the new enforced pastime.

Allow

This app requires access to your:


Allow

Camera
Microphone
Location
Mood
Lorem ipsum

Dietary requirements
Sleeping habits
School report cards
Consent
Bank records
Internet history
Darkest secrets

Whatever

Authorize

Accept all Accept some

With an increasing number of websites cookies and data collection, whereas In fact, 47 percent think the internet
wanting to collect our information, 51 percent are annoyed by it. needs a new business model beyond
browsing the internet has turned into Trying to cajole consumers into agreement advertising. And as many as 42 percent
a real chore. Although the EU initiative might in fact be counter-productive. In say the internet needs to be changed
to protect user data and integrity has our survey, 46 percent of consumers say fundamentally if it is going to be a
consumer benefit in mind, it has set that having to agree to so much makes force for good in society again.
off a global epidemic of companies agreement enforced and worthless.
trying to get consumers to sign away Instead, it only creates mistrust.
their rights to personal data. The major business model behind this
The result of this is consumer fatigue. is to serve up personalized adverts to the
More than half think there should be a users. But that in itself becomes a problem
single standardized agreement that all when 49 percent say they often have to
companies would have to use, allowing wait for an ad to load before they can
a choice over which level of personal data view a web page. This begs the question:
use consumers accept. Only 8 percent are is the internet broken?
comfortable with always having to accept
10 Ericsson  |  10 Hot Consumer Trends 2019

Internet of skills

Using AR/VR to structure reality will


let us instantly master almost anything.

With increasing internet use, a


Figure 2: Percentage of AR or VR users interested in services
gradually diminishing understanding
of physical things is affecting all of us. A pair of glasses that help you repair almost
We don’t know what to do when there anything in your household by giving
is no app to start or screen to swipe. on-screen instructions
Almost half of all respondents agree An app that gives hands-on help to cook
food by mapping onto your stove and kitchen
that those who spend too much time
utensils
on the internet seem to forget how to An AR experience that maps onto your own
do even simple things in real life. body and teaches you to dance
But now the internet is about to
literally step into the physical world, and A smartphone app that digitally shows
everything from tying shoes to pumping air into
help us fix that broken chair, even if we
a bike tire
have never used a hammer before. Or Gloves that can guide your fingers when
help us cook the best food imaginable repairing things or even when sewing on a
even if we normally fail with missing shirt button
instant noodles.
Imagine a YouTube video that 0% 10% 20% 30% 40% 50% 60% 70%

interactively personalizes instructions to


Base: AR or VR users in 10 cities globally
help you do something you have never tried Source: Ericsson ConsumerLab 10 Hot Consumer Trends 2019
before. Eighty-two percent of AR/VR users
believe that this type of instruction will be
mainstream in only three years. help you repair almost anything, With instructions that adapt digitally to
But AR and VR offer possibilities far and 56 percent even want to learn any task at hand soon to be available
beyond that. Sixty percent would like how to dance using an instructive on demand, we will likely see the
glasses with on-screen instructions that AR experience. creation of a whole internet of skills.
11 Ericsson  |  10 Hot Consumer Trends 2019

Zero-touch consumption

Virtual assistant users would like to fully automate


many boring aspects of consumption.

Home assistant
“Utility bill has
automatically
been paid”

Home assistant
“Washing up
liquid low, I have
ordered more”

Shopping can be aspirational, social and Maybe an assistant could actually be


fun. It can also be an everyday chore that
has to be done – or there won’t be anything
smart enough to fix itself if it breaks
down? Fifty-two percent want virtual 47%
in the fridge to cook for dinner. assistants to manage warranty repairs
47 percent would like a virtual assistant
People are increasingly expecting of household electronics. to handle all their finances, including
new technology to automate the boring Some of this household automation tax declarations.
elements of life, and in the process, might seem a bit alien, as one considers
hopefully allow us to spend more time that humans are of course still the
on interesting things. For example, not ultimate beneficiaries. But zero-touch
everyone finds going to the supermarket consumption without human intervention
to buy groceries stimulating – 49 percent might happen sooner than we think.
of virtual assistant users would like to In fact, 7 in 10 current virtual assistant
automate household restocking of users think these types of automated
generic items. consumption will be commonplace in
Keeping track of bills for gas, electricity only 3 years’ time.
and water and paying them when they are
due is another tedious task that 55 percent
would like to automate. Forty-seven percent
would in fact like a virtual assistant to handle
all their finances, including tax declarations.
12 Ericsson  |  10 Hot Consumer Trends 2019

Mental obesity

Automation of decisions could make us mentally lazy.

Toast or cereal? What if you couldn’t virtual assistant that decides when they

31%
even decide what to have for breakfast should visit a doctor, dentist or hairdresser.
without asking a digital device Today’s screen age has made us lazy as
for advice? we aren’t required to move. Anything we
31 percent of consumers believe
This could become a reality, given that want is just a click or a swipe away, and
that we will have to go to “mind
34 percent of virtual assistant users would many of us exercise our bodies less than gyms” to practice thinking.
trust an AI as their nutritionist, but only we need. But we may be on the cusp of
25 percent would trust a human. this laziness spreading to our minds too.
Eating right makes you feel better, With digital decision support in increasingly
but automating such decisions might more areas of everyday life, one-third
also take you down a path where you of consumers think virtual assistants
no longer know how you feel. In fact, will make people forget how to make
57 percent say they want a smartphone their own decisions.
that knows when they are becoming ill In fact, 34 percent already believe
before they notice themselves, and critical thinking will disappear due to
54 percent would like a smartwatch that the overuse of virtual assistants. And
senses when they are getting stressed 31 percent of consumers also expect
before noticing it themselves. that we will have to go to “mind
Would this lead to people attending gyms” to practice thinking.
medical appointments without knowing  
why? Forty-three percent would like a
13 Ericsson  |  10 Hot Consumer Trends 2019

Eco me

Self-knowledge now means minimizing


your environmental impact.

The idea of monitoring your vitals has been However, awareness is one thing and This might also entail digital holiday
in the public eye ever since smartphones acting on it is something else. This is souvenirs and a rise in status of digital
went mainstream. But when the first where automation comes in. For example, items compared to physical.
generation of wearables did not live up 4 in 10 would like a virtual assistant Our shopping habits also need to
to high consumer expectations, the interest that environmentally optimizes indoor change and change fast. As many as
in self-quantification also took a hit. temperature and water use. 68 percent think virtual assistants will help
Now wearable technology has matured In other cases, abstaining from action is almost everyone avoid products with big
and interest is returning, albeit with a twist. more important. Hence, 75 percent think that environmental impact within the next
Wellbeing today is as much about CO2 digital commuting, as opposed to physical 3 years. And almost half would support a
as it is about calories. commuting, will be mainstream in 5 years – digital eco-currency that gives them extra
People are increasingly connecting to lessen its environmental impact. Changes money when they shop and commute in
their own health to a healthy environment. will also apply similarly to private life; environmentally friendly ways.
As a result, 39 percent of respondents would 78 percent believe that in the same 5-year
now like an eco-smartwatch that measures time frame, VR holidays as a replacement
their daily carbon footprint. for physical holidays will become
mainstream for environmental reasons.
14 Ericsson  |  10 Hot Consumer Trends 2019

My digital twin

Avatars will let us be in two places at the same time.

Being in two places simultaneously know when politicians and celebrities as 49 percent believe customer service
might sound like magic, but in reality, we are real and when a digital avatar just and support functions will eventually
already are – often on a daily basis. Even acts like them. use only avatars instead of people
when making a simple phone call, we are This blurring of what is real and what – an area that today is already highly
physically in one place and yet are mentally is digital will have some merits. Around focused on automation.
engaged in a conversation taking place half would like avatars that can represent And AR/VR users believe lifelike avatars
somewhere in the ether. This also goes for them in different places at the same time, are coming soon. More than half think
many situations on the internet, such as in such as at work or school, as well as at avatars will be commonly used in online
a chat or game. social gatherings. meetings in only a year, and as many already
But with avatars becoming increasingly But 46 percent also worry that they want to use avatars in this way.
realistic, it may become difficult for others will be held responsible if their avatar
to judge if we are in a certain place or not. In does something illegal – which could be
fact, 48 percent of AR/VR users think avatars dangerous since as many also believe fake
will mimic their face so well that it will be avatars could steal their identity.
no different to looking in a mirror. This It might be a long time until avatars
won’t only apply to ordinary people. Thus, become our true digital twins. But it is a
47 percent predict that it will be difficult to direction we might end up going in,
15 Ericsson  |  10 Hot Consumer Trends 2019

5G automates society

Smartphone users globally expect 5G to have


a big impact on societal internet infrastructures.

Smartphone users across 50 countries Figure 3: Share of consumers who think the following services will benefit the most from 5G
have high expectations of 5G to mobilize
and automate many areas of everyday life. Home security alarms
While they see communication benefitting
VR online shopping
most from upgraded mobile networks, they
also believe that 5G will support automation Self-driving cars
in a variety of ways.
Not only do 37 percent predict 5G will Electricity, gas and water meters that connect
to the internet
better enable home alarms but 23 percent
Refrigerators, stoves and washing machines
believe it will benefit self-driving cars that connect to the internet
too. One in five also see a long list of IoT Household robots that do laundry, etc.
devices made more useful by 5G including
electricity, gas and water meters, as well as
0% 10% 20% 30% 40%
refrigerators, stoves and washing machines.
Smartphone users globally also think Base: 72,067 smartphone users aged 15–69 in 50 countries
AR/VR applications will be improved. Source: Ericsson ConsumerLab analytical platform 2017/2018
Specifically, 32 percent see VR shopping
benefitting from 5G, and 21 percent automation by becoming an intelligent hub and smart glasses fourth, all of which are
also expect mobile use of AR/VR for IoT devices. In fact, respondents in our devices that point toward an increasingly
headsets in general. urban early adopter study ranked the AI automated future.
In order for such services to reach the phone as the No. 1 tech device that people Still, iconic products are typically the first
mass market, 5G will need an iconic device everywhere will buy, in a list of of their kind, so the 5G device that actually
that resonates with consumers. While the 12 future-oriented devices. defines the next era may yet surprise us all.
iPhone defined the mobile internet, it Furthermore, respondents ranked
might take an AI phone to define mass self-driving cars second, AR phones third
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