Consumers are increasingly shifting to digital services as their budgets shrink, and they increasingly rely on digital products to save time, money and reduce stress, according to new research.
The new findings show that digital services are the biggest loser in terms of sales growth in 2017 and 2020, according the National Association of Broadcasters, which compiled the report.
The categories that lost the most money include physical goods and services, as well as digital services, the NAB found.
Among the big winners were online shopping, travel, retail, and health care.
NAB estimates that digital businesses are worth about $1.7 trillion in sales and have a projected total of more than $13 trillion in revenue in 2021. “
This is a key opportunity for companies that understand the value consumers can get from their products and services to capture more of that value.”
NAB estimates that digital businesses are worth about $1.7 trillion in sales and have a projected total of more than $13 trillion in revenue in 2021.
“Digital is poised to deliver the future of retail and commerce,” Cillizzi said.
The report found that digital sales will grow by more than 5 percent annually in 2021, and will be up about 30 percent from 2018.
For that reason, consumers are increasingly moving to digital-based businesses, according Cillizias report.
That’s led to an uptick in the number of companies offering digital-only offerings.
But the report said that digital companies may still have a long way to go.
“Our analysis indicates that while digital is poised for rapid growth, it’s going to take time to fully capture the benefits and become a mainstream form of commerce,” the report stated.
The NAB also pointed out that the market for physical goods is still growing, despite falling consumer spending.
The study found that the physical goods industry is worth $3.4 trillion, with a projected $2.9 trillion in revenues in 2021 and a market share of about 14 percent.
That is a significant jump from the previous report, which estimated that the industry’s market share would be around 5 percent.
But a lot of that growth is expected to come from online sales, the report states.
“In the years ahead, consumers may increasingly move from physical goods to digital purchases, and the pace of growth will be driven by digital-enabled purchases,” the study said.
“While physical goods may still be a relatively small part of the overall economy, digital and other digital services will be critical to the success of the economy as a whole.”
The NAC said that the report, “shows that digital and the services offered through digital will be a key driver of growth in 2021,” and that digital is also a key market for the physical and wholesale goods industries.