Spotlight on Americans 50+
In the United States, there are millions of consumers age 50 and over who control billions
of dollars in disposable income. While Older
American Households* are similar to Younger
Households regarding their ownership and
purchase intent of many consumer electronics (CE) devices, there are a number of distinct differences that makes the Older Household unique. It is important for CE manufacturers, retailers and service providers to consider the diverse needs and desires of adults
age 50 and over because this age segment is
sizable in both their numbers and in their
spending power.
Market Size
Over 100 million people ages 50 and over
currently reside in the United States. This
segment represents nearly one third of the
overall U.S. population.
This age segment is projected to increase
to about 135 million people by 2030 and
constitute approximately 37% of the overall
U.S. population (a 5% increase).
The highest expenditures for this age segment compared to younger age groups
include healthcare, personal care, and
entertainment.
Source: U.S. Census Bureau / AARP
This AARP-sponsored analysis brief examth
ines the results from CEA’s 14 Annual CE
Ownership and Market Potential study to provide insight into technology ownership trends
among Older American Households in the U.S.
*Note: The findings contained herein are based on the analysis of head of households who are ages 50 and over, referred to as ‘Older Households’ in this report. Likewise, ‘Younger Households’ are those headed by adults ages 18-49.
Prevalence of CE Products
The most universally owned CE devices among Older American Households are televisions
(of any type) with 98% owning at least one TV, comparable to Younger Households, also
98%.
-
Of the televisions owned, a majority have a screen size of less than 40 inches (86%) on
par with Younger Households (87%).
-
Older Households are less likely to own an HDTV (62%) than are their younger counterparts (73%).
Most Prevalent CE Products
Younger Households (Ages 18-49)
April 2012
Most Prevalent CE Products
Older Households (Ages 50+)
April 2012
The Evolving Video Landscape
14th Annual CE Ownership and Market Potential
Introduction
TV (of any type)
98%
TV (of any type)
98%
TV <40 inches
86%
TV <40 inches
87%
Cell phone (not a smartphone)
72%
DVD player
82%
In-dash CD player
68%
Digital camera
82%
DVD player
66%
In-dash CD player
79%
Digital camera
65%
Multi-function printer
77%
HDTV
62%
Network router
75%
Desktop computer
62%
Notebook or laptop
74%
Multi-function printer
59%
HDTV
73%
TV 40 inches +
48%
Desktop computer
72%
LCD flat panel TV
48%
Game console
69%
Network router
47%
TV 40 inches +
62%
Notebook or laptop
47%
Cell phone (not a smartphone)
61%
Base: U.S. adults (ages 50+ n=861, ages 18-49 n=838)
Q: For each of the following [CATEGORY] products, please tell me how many you or someone in your household owns.
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Spotlight on Americans 50+
Rounding out the top five CE products owned among 50+ households, nearly three fourths own a cell phone that is
not a smartphone (72%) and approximately two thirds own in-dash CD players (68%) and DVD players (66%).
DVD players (82%), digital cameras (82%) and in-dash CD players (79%) complete the top five CE products owned
for those households under age 50.
Average Annual Consumer Spend
While spending by Older American Households on consumer electronics is considerably lower than spending
by Younger Households, the 50+ segment typically has higher income and represents a sizable share of the CE
market.
On average, U.S. adults ages 50 and over reported personally spending $415 on CE in the past year with overall Older
American Household spending at $704.
Despite having slightly lower incomes than their 50+ counterparts, those ages 18-49 tend to spend more on consumer
electronics. At the individual level, U.S. adults under age 50
reported spending an average of $766 on CE products in the
past 12 months and $1,255 at the household level.
Video Products: Ownership and Purchase Intent
Televisions are the most commonly owned CE video product
among Older American Households. In the future, HDTVs,
particularly LCD flat panel TVs, and TVs with a screen larger
than 40 inches rank highest in terms of purchase intent
among households of this age group.
Among Older American Households, televisions (of any type)
are the top CE device owned (98%), a majority of which have
screen sizes less than 40 inches (86%). Approximately six in
ten (62%) televisions owned are HDTVs, and of those, LCD
TVs are the preferred choice with nearly half (48%) owning
at least one unit. Additionally, one quarter currently own a
plasma flat-panel TV (27%) or an Internet-enabled TV
(26%).
Base: U.S. adults (ages 50+ n=817, ages 18-49 n=799)
Q: Over the past 12 months, approximately how much money has your household spent on
consumer electronics products?
Base: U.S. adults (ages 50+ n=837, ages 18-49 n=813)
Q: And approximately how much money have you, yourself, spent in the past 12 months on
consumer electronics products?
Roughly two-thirds own DVD players (66%) and digital cameras (65%).
The least owned CE video products within this segment include Blu-ray Disc players (20%), digital media players
(17%), projection TVs (10%) and 3D TVs (4%).
Looking towards the future of video products in Older American Households, purchase intent is strongest for televisions (of any type), particularly HDTVs, TVs with screen sizes larger than 40 inches and LCD flat panel TVs, along
with digital cameras.
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Spotlight on Americans 50+
Base: U.S. adults (ages 50+ n=861)
Q: For each of the following [CATEGORY] products, please tell me how many you or someone in your household owns.
Q: When, if ever, do you expect to own each of the following products?
Automotive Products: Ownership and Purchase Intent
Older Americans Households show
considerable interest in several
automotive CE products including in
-dash CD players and portable GPS
systems. Additionally, there is increasing interest in owning in-dash
navigation systems and hands-free
devices in the future.
In-dash CD players (68%) and
portable GPS systems (40%) are
the most commonly owned automotive CE devices among this segment.
Purchase intent within the next
year is highest for hands free car
kits and portable GPS systems,
with elevated interest shown for indash CD players and in-dash navigation systems within the next several years.
Base: U.S. adults (ages 50+ n=861)
Q: For each of the following [CATEGORY] products, please tell me how many you or someone in your household owns.
Q: When, if ever, do you expect to own each of the following products?
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Spotlight on Americans 50+
Computer Products: Ownership and Purchase Intent
While Older American Households
tend to own a higher percentage of
desktop computers than other
forms of computing devices, interest in and purchase intent is strong
for mobile computing devices such
as tablets, E-readers and netbooks.
Six in ten currently own desktop
computers (62%) and multifunction printers (59%). Nearly half
own notebook or laptop computers
(47%) and network routers (47%).
Looking specifically at portable
computing devices, while ownership is still relatively low, future
purchase intent shows strong interest in such devices. Among these
households, tablet computers are
most likely to be purchased sometime in the future (40%) followed
by E-readers (35%) and netbooks
(29%).
Base: U.S. adults (ages 50+ n=861)
Q: For each of the following [CATEGORY] products, please tell me how many you or someone in your household owns.
Communications Products: Ownership and Purchase Intent
While cell phone ownership (of any
type) is strong within Older American Households, they are far more
likely to own basic cell phones than
smartphones. However, future purchase intent for smartphones indicates strong potential for growth
among this population.
Nearly three quarters (72%) currently own a cellphone that is not a
smartphone. This is much higher
than ownership among Younger
Households (61%).
Their future purchase intent is
strongest for notebook or laptop
computers, multi-function printers
and desktop computers.
Smartphone ownership is considBase: U.S. adults (ages 50+ n=861)
erably lower in Older Households
Q: For each of the following [CATEGORY] products, please tell me how many you or someone in your household owns.
(28%) in comparison to Younger
Q: When, if ever, do you expect to own each of the following products?
Households. However, purchase
intent within the next year for smartphones is relatively equal to that for non-smartphones (12% versus 13% respectively), as is true for long-term purchase intent (43% versus 49% respectively), as well.
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Spotlight on Americans 50+
Subscription Services
Numerous subscription services are available to consumers nowadays and Older American Households express interest in many of the services currently available. Adoption is growing at a steady pace and future intentions suggest this area to be of particular interest among this population.
Base: U.S. adults (ages 50+ n=861)
Q: Does you household currently subscribe to any of the following services?
Q: When, if ever, do you expect to subscribe to each of the following services?
The two most commonly subscribed to services are satellite radio services and video rental/streaming services, both
by 14% of Older American Households. Additionally, one in ten subscribe to Internet phone service providers (11%)
and in-vehicle communication service providers (10%)
While one year subscription intent for these services is somewhat low, total subscription intentions are high with approximately one quarter indicating they will subscribe to such services sometime in the future.
Content
Traditional content purchases are expected to remain strong for Older Households. Digital content shows great
promise for increased future sales as more older Americans embrace newer technologies which use digital content.
Paperback or hardcover books are the most common traditional content items purchased by Older Households with
more than half (56%) having purchased at least one in the past 12 months. This is followed by DVDs (movies or television shows) at 42% and music CDs at 39%.
Purchase intent in the next 12 months for these items remains relatively consistent: 57% for paperback or hardcover
books, 43% for DVDs and 42% for music CDs.
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Spotlight on Americans 50+
Higher growth potential can be expected for digital content in the next 12 months. Adoption of newer technologies
and mobile devices in particular will lead Older Households to purchase more digital content in the near future.
Purchased Past 12
Months
Planned Purchase
Next 12 Months
Paperback or hardcover books
56%
57%
DVDs, movies or television shows
42%
43%
Music CDs
39%
42%
Video games on disc
13%
14%
Blu-ray Discs, movies or television shows
13%
16%
3D Blu-ray Discs, movies or television shows
7%
10%
Digital music
17%
19%
Apps for smartphone or tablet
17%
20%
E-Books
15%
21%
Digital movies or television shows
9%
12%
Digital video games
8%
8%
Content - Older Households (Ages 50+)
Traditional Content
Digital Content
Base: U.S. adults (ages 50+ n=861)
Q: What types of content, if any, have you purchased in the past 12 months?
Q: Which of the following types of content, if any, do you expect to purchase in the next 12 months?
In Summary
Americans ages 50 and over represent a sizable market segment for consumer electronics retailers and manufacturers to target. With well over 100 million people in this age group who spend nearly $3 trillion annually and who
have reached peak income levels, there is significant spending power to tap into for CE purchasing.
Older American Households currently own many CE devices across the various product categories. Current
ownership is highest for televisions (particularly HDTVs and TVs with screen sizes less than 40 inches), cell phones that
are not smartphones, in-dash CD players, DVD players, digital cameras and desktop computers. CEA finds older adults
are interested in new and evolving technologies and show great interest in purchasing products such as larger, more
sophisticated TVs, along with smartphones, navigation systems and mobile computing devices such as tablets, Ereaders and netbook computers. Therefore, CE manufacturers, retailers and service providers should continue to focus
on quality products and services for this age segment, as this group of consumers will continue to grow with evolving
technologies in the future.
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Spotlight on Americans 50+
Methodology
The report described herein was designed and formulated by the Consumer Electronics Association (CEA) ®. Data from this analysis
brief was sourced from CEA’s 14th Annual CE Ownership and Market Potential study. The quantitative study was administered via
telephone interview to a random national sample of 2,028 U.S. adults between January 26 and January 30, 2012 . The margin of sampling error at 95% confidence for aggregate results is +/- 2.2%. For Americans 50+ the sampling error is +/- 3.3%.
CEA members can access CEA’s 14th Annual CE Ownership and Market Potential study at
http://members.CE.org.
Non-members may purchase the full study which includes analysis and data crosstabs at
http://mycea.ce.org/
About CEA
The Consumer Electronics Association (CEA) is the preeminent trade association promoting
growth in the $195 billion U.S. consumer electronics industry. More than 2,000 companies
enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion, standards development and the fostering of
business and strategic relationships. CEA also owns and produces the International CES The Global Stage for Innovation. All profits from CES are reinvested into CEA’s industry services.
1919 S. Eads St.
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[email protected]
Find CEA online at www.CE.org.
About AARP
AARP is a nonprofit, nonpartisan organization with a membership that helps people age 50 and over have independence, choice and
control in ways that are beneficial and affordable to them and society as a whole, ways that help people 50 and over improve their lives.
Since 1958, AARP has been leading a revolution in the way people view and live life.
About AARP’s Innovation@50+ initiative:
The Innovation@50+TM initiative aims to spark entrepreneurial activity across public and private sectors. Anchored by the AARP social
mission – to enhance the quality of life for all as we age – the initiative enlists the expertise of visionary thinkers, entrepreneurs, the
investment community, industry and not-for-profits to spur innovation to meet the needs and wants of people over 50.
On the ground, the initiative catalyzes research and helps shape a marketplace ethos by promoting core, unifying principles such as
"design for all." It stimulates new business models that reflect the broad transformation in how the 50-plus life is being re-imagined.
Lastly, the initiative prepares 50-plus people to communicate with, access, engage and thrive in a new "longevity economy."
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© 2012 Consumer Electronics Association (CEA)®. All rights reserved. research.CE.org
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