Digital Consumer Trends: Adoption of Digital Devices and Services Plateauing

Rotterdam, 11 December 2024

Smartphones have become indispensable, with 97% of users reporting daily usage. In contrast, VR headsets remain a niche product. Only 6% of consumers own a VR headset, and only a limited proportion (12%) of those also use the device daily. Although only a third of the Dutch (34%) own a smartwatch, the majority of owners (68%) make use of the device daily.

The adoption of smart devices in the home is growing slowly. Of the respondents, 88% now have some sort of connected device at home. The smart TV is by far the most widespread: 70% of households have a smart TV (2023: 69%). About a third of households have (access to) a video streaming device (35%) and wireless speakers/soundbar (33%). For other smart devices, such as smart thermostats, smart lighting systems and smart security systems, usage remains relatively low, with less than a quarter of households owning or having ready access to these devices.

Reliability and in-home coverage matter most to consumers
 

Broadband satisfaction levels continue to nudge upwards, with 85% of consumers being at least fairly satisfied. For many households, reliability and in-home coverage matter more than broadband speed. It is remarkable that almost 40% of consumers do not know what their home broadband speed is.

In the past four years, the possibilities around mobile 5G for consumers have expanded. However, the perception of 5G as a superior technology relative to 4G has barely changed. A slight majority of respondents (51%) consider 5G as superior, with 60% of men holding this view and 38% of women. About 45% of consumers notice little difference. This underscores the challenges the telecom industry faces in positioning 5G as a premium service.

Digital subscription market is maturing quickly

The market for digital subscriptions to video, music, TV, sports, news, games, books, podcasts and the like, has slightly grown in 2024. Video and music streaming remain the most popular categories.

The market for video streaming services is maturing quickly. Half of consumers (50%) have not changed their subscription(s) in 2024. 26% of consumers have subscribed or re-subscribed to a video streaming service. One in ten consumers (10%) has cancelled a subscription, but intends to re-subscribe in the future. Cost and insufficient usage were the main reasons for 20% of users to cancel their subscription to a video streaming service.

Rising adoption of AI, consumers increasingly critical and aware of challenges
 

The research shows a rising adoption of generative AI, as well as a growing awareness of associated challenges such as providing biased responses. Compared to a year ago, confidence in GenAI's reliability has fallen significantly. In 2024, only one in five users agrees that generative AI always provide factually accurate answers, compared to 39% in 2023. While nearly half of Dutch adults (48%) are using GenAI for work, most employers are not yet actively encouraging the use of the technology.

Noteworthy is also the increasing caution and scepticism about music produced by generative AI. Around 42% of respondents say they are less inclined to listen to music if they know it was produced by generative AI, up from 28% in 2023.
 

One in three Dutch consumers uses a second-hand device
 

From a sustainability perspective, the findings from the survey are encouraging. One in three Dutch consumers now uses a second-hand or refurbished digital device. Moreover, almost half of the smartphones (46%) in use in the Netherlands are at least 4.5 years old. This also slows down the market growth for mobile phones.

Scepticism about the companies' eco credentials remains high, with only 27% of respondents who trust that tech companies are transparent when declaring their carbon footprint. 62% of respondents feel that companies often overstate their "green" image.

The number of people who regularly have conversations with family or friends about the carbon footprint of different activities has increased from 15% in 2023 to 21% in 2024. These conversations are mainly conducted by young people aged 18-24 (32%). Remarkably, young people also tend to be more sceptical about their own impact on CO2 emissions, whereas older generations think that changing their emissions can make a difference.