Traditional television and video streaming neck and neck for the first time – Use of digital voice assistants continues to rise – Bitkom trend study shows 1 percent decline in sales

The world of consumer electronics is changing. While total sales are declining slightly after the pandemic-induced high, technological developments in artificial intelligence (AI) are creating new momentum – from smart audio and video use to digital voice assistants. This is illustrated by the latest trend study by the digital association Bitkom, “The Future of Consumer Technology 2025,” which was presented in the run-up to the IFA.

Sales consolidate after coronavirus boom

According to Bitkom’s forecast, the consumer electronics industry, which includes televisions, audio devices, and digital cameras, will see a one percent decline in sales to 7.8 billion euros this year, down from 7.9 billion euros last year. This continues the trend of recent years: after peaking at €9.3 billion due to the pandemic, the market volume is now shrinking for the fifth year in a row.

“Demand is returning to pre-pandemic levels after the boom of the pandemic years. Many households have renewed their technical equipment in recent years, so the need for new purchases is currently lower. Added to this are economic uncertainties that are dampening consumers’ willingness to buy. We see growth potential primarily in new game consoles and AI-based technologies,” explains Bitkom Presidium member Olaf May.

Significant growth is expected for game consoles, with sales expected to rise by 38 percent to €1.07 billion. However, flat-screen TVs remain the biggest revenue driver with 2.85 billion euros, even though they have seen a decline of 8 percent. Audio devices are also losing ground, with sales falling by 12 percent to 830 million euros. Accessories for audio and video amount to 1.63 billion euros (-3 percent). Sales of digital cameras (€570 million) and other consumer technology such as Blu-ray and DVD players, media sticks, set-top boxes, and interchangeable lenses (€850 million) remain relatively stable.

Television and streaming: two worlds collide

A key finding of the study is that, for the first time, people in Germany are using traditional television and video streaming with almost equal frequency. While 86 percent of respondents aged 16 and over watch linear television programs via cable, satellite, or antenna at least occasionally (2024: 92 percent), 87 percent already stream videos, films, or programs via the Internet (2024: 86 percent).

“We are observing a clear trend: traditional TV usage is slowly declining, but remains at a high level. At the same time, streaming services are continuing to catch up. This is reinforced by regulatory changes such as the elimination of the ability to pass on cable connection costs in rental apartments, which has forced many households to choose alternative reception methods,” explains May.

How content is consumed depends heavily on age: while 50 percent of 16- to 29-year-olds prefer on-demand formats, 48 percent of streaming users aged 65 and over continue to be predominantly oriented toward fixed broadcast times. In addition, the boundaries between the two worlds are becoming blurred: TV stations offer on-demand services via media libraries, streaming services integrate linear content, and new FAST channels – free, ad-supported Internet stations – are becoming increasingly established.

AI revolutionizes the world of film and music

The population expects AI to bring about major changes, particularly in the areas of film and accessibility. 56 percent believe that films and series will be more accessible to deaf or blind people in ten years’ time – for example, through automatic subtitles, audio descriptions, or sign language avatars. Forty-three percent believe that in a decade, the majority of films will be AI-generated. And just under a third think it is realistic that AI avatars will present the news in the future.

While 67 percent see AI content as a threat to the traditional film industry, 29 percent would find it acceptable for an AI-generated film to win an Oscar. “Artificial intelligence has long since arrived in moving image production – whether in personalized recommendations, automatic subtitles, real-time optimization of image and sound, or even the first AI-generated presentations and scripts,” says May.

The music world is also affected by these developments. Forty-four percent of respondents expect that in ten years, the majority of music will be generated by AI. Seventy percent see this as a threat to the established music industry, while a third would use AI themselves to compose their own pieces.

Audio remains indispensable

Regardless of AI, audio streaming remains an integral part of everyday life: 85 percent of Germans aged 16 and over use such services. The most widely used are streaming services (65 percent) and video platforms (64 percent), followed by internet radio (32 percent), podcasts (30 percent), and audiobooks (20 percent). However, traditional radio remains at the top – 92 percent of the population listen to it at least occasionally. CDs and records are used by 10 percent.

Voice assistants in everyday life

The use of digital voice assistants is growing particularly strongly. Sixty-two percent of Germans now use voice control at least occasionally – an increase of nine percentage points over the previous year. It is particularly popular among younger people, but older target groups are also increasingly discovering its advantages.

The smartphone is the most important device (91 percent of users), followed by smart speakers (79 percent), assistance systems in cars (68 percent), and tablets (58 percent). Even televisions, smartwatches, and streaming sticks are increasingly being controlled by voice.

The applications range from entertainment and everyday organization to mobility. Users start music and calls via voice command, control household appliances, have weather reports or traffic information read aloud to them, and navigate through cities.

AI as a driver of new voice assistance

The future of voice control clearly lies in its connection with artificial intelligence. Almost half of those surveyed would like to use an AI voice assistant that creates meal plans or suggests gifts. Many would like support in learning new skills or organizing appointments with family and friends.

“We are currently experiencing the transition from reactive voice commands to proactive assistants. Future systems will not only execute commands, but also actively make suggestions and think along in natural language. Voice assistants are thus evolving from a nice gadget to a personal everyday companion,” says May, describing the outlook.

At the same time, new types of devices are emerging, such as smart glasses that are voice-controlled and already offer initial AI functions. Four out of ten Germans are open to using such smart glasses. “These devices are not yet widely available, but in a few years they will be equipped with augmented reality functions and will develop into wearable everyday assistants,” says May.

Outlook

With its trend study “The Future of Consumer Technology 2025,” Bitkom offers comprehensive insight into the current state of the industry – from sales developments and usage trends to the future prospects of AI, AR, VR, and the metaverse. The data underscores that while sales are stagnating or declining slightly, technological innovation is creating a new dynamic that will have a lasting impact on the consumer electronics market.

The complete study is now available free of charge at www.bitkom.org/zukunft-consumer-technology.