# Key Tech Trends to Anticipate from CES 2022
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Understanding Consumer Behavior
In a recent online session titled “CES 2022 Tech Trends to Watch,” Steve Koenig, the VP of Research at the Consumer Technology Association (CTA), delves into the evolving behaviors, global trends, and key technologies anticipated this year.
Koenig highlights a notable trend where consumers are “leveling up” their technology, akin to a “home makeover.” He articulates this trend by noting that consumers aspire to achieve a “21st-century lifestyle.” This lifestyle frequently incorporates “smart technology,” as individuals invest in IoT devices to establish a connected home that caters to their preferences more effectively. These smart devices often come with “attached services” rather than being mere “dumb” gadgets.
An example of this is “connected fitness” technology, which can monitor users' progress through IoT integration or link to online platforms. Koenig points out that “research indicates that purchasing one or two smart products typically leads consumers to desire even more.” Thus, after acquiring initial smart home devices, customers are likely to expand their collection. He underscores that this trend transcends borders, making it a global phenomenon.
Emergence of Premium Brands
The rise of “premium brands” is another significant trend, which Koenig describes as “simmering” over time. He cites examples like Beats headphones and the Nintendo Switch as brands that have gained strong consumer acceptance. According to him, there is a clear consumer desire for a premium experience, with many individuals willing to spend more for it. This trend has only intensified during the pandemic, as more people seek to enhance their tech.
Additionally, the popularity of subscription services has surged. Koenig notes that “customers’ enthusiasm for services” has grown in our socially distanced reality, with the average user subscribed to around eight services. These “pandemic pivots” reflect the changes brought on by the pandemic and are expected to persist in the future.
Addressing Supply Chain Issues
A pressing concern that Koenig hopes will soon be resolved is the “supply chain” dilemma, which has significantly worsened during the pandemic. He presents a chart illustrating this escalation.
The chart indicates that shipping costs are beginning to decline, suggesting that the current trend might not persist. Koenig mentions potential technological solutions, such as the adoption of “autonomous trucks,” with several companies at CES showcasing innovations in this area.
Another significant challenge in the supply chain is the “chip shortage.” Koenig observes that some semiconductor manufacturing plants are responding by ramping up production, adding shifts to enhance output. He also notes that new chip fabrication facilities are in development, though these solutions will require years to fully address the issue.
Trends in Innovation and Industry
Koenig identifies several larger, promising trends, one of which is the rollout of 5G technology. He explains that 5G will serve as a crucial enabler for innovation throughout this decade. Unlike previous generations, this wireless technology is being driven by enterprise needs rather than consumer demands. Koenig emphasizes that the “real value of 5G” lies in its potential for enterprises, particularly in industrial IoT applications, allowing for real-time connectivity in production environments.
Moreover, data centers are increasingly migrating services to the cloud, and 5G will play a pivotal role in facilitating this transition efficiently. Another significant trend highlighted by Koenig is the advancement of artificial intelligence (AI). He notes its continuous improvement, which may lead to transformative applications and use cases. A prime example he shares is the “see and spray” capability of a new John Deere tractor showcased at CES 2022, which utilizes AI to differentiate between crops and weeds, thereby minimizing pesticide usage.
The Future of the Metaverse
Koenig envisions the Metaverse as the “next generation of the Internet,” promising increasingly immersive digital experiences. He believes this new digital landscape will be closely intertwined with our physical reality. According to Koenig, “the metaverse is closer than you think,” with foundational technologies already in place. He highlights the importance of haptics and volumetric video technology in enhancing the realism and immersion of the Metaverse. The combination of cloud technology and the robust connectivity of 5G will further facilitate this evolution.
Koenig humorously reminds the audience that “Ready Player One was set in the year 2045,” suggesting we should prepare for a future where such immersive experiences become commonplace.
Though CES 2022 has concluded, the online content and video-on-demand sessions will remain accessible until January 31. CES continues to be an insightful venue for exploring the future of technology, and it's essential to keep an eye on which trends persist and which predictions materialize in 2022.
Laura Kobylecky is a contributing writer for Tech Trends, with a keen interest in emerging technologies and cultural shifts. Connect with her on LinkedIn.