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Key Insights from AARP’s “2023 Report on Tech Trends and Adults 50-plus"

By Mark Ogilbee posted 01-26-2023 05:38 PM

  


Earlier this month, AARP released its “2023 Tech Trends and Adults 50+” report, an annual deep dive into the state of AgeTech, where things are heading, and opportunities for growth. It's teeming with data that can help startups and other organizations in the AgeTech space develop and iterate on their products and services.
 Here are some of the report’s key takeaways, broken down by category.  

   Market size

    •           • The 50-plus market in the U.S. is large and growing.
                • 47% of the adult U.S. population drives $8.3 trillion in economic activity each year.
       
         Tech purchases 

    •           • More than 7 in 10 older adults made a tech purchase in 2022, including 72.9 million smartphones, 49.6 million tablets and 23.5 million wearable devices. 
    •           • In 2022, U.S. adults 50-plus spent $912 on average on tech, an increase of 130% compared to pre-pandemic levels. 
    •           • By 2030, spending on tech by older adults is projected to be more than $120 billion. 
    •           • In 2022, adults 50-plus contributed $1 trillion dollars to global communications spending. This is projected to grow to $2.9 trillion in 2050. 

     

    •      Narrowing gap vs. younger consumers
    •           • Adults 50-plus are closing the gap versus younger consumers: 91% of adults aged 18–49 own cell phones, compared to 86% of adults 50-plus; 60% of adults aged 18–49 own tablets, compared to 59% of adults 50-plus; and 27% of adults aged 18–49 use smart home technology, compared to 24% of adults 50-plus. 
    •           • Tech use across categories is growing: From 2019 to 2022, cell phone usage is up 3% (to 91%) for ages 50–59; up 6% (to 87%) for ages 60–69; and up 18% (to 80%) for ages 70–79. 

     

    •      Growth in cell phone usage
    •           • Among adults 50-plus, the top uses for cell phones include text, instant messaging and email (91%); directions or traffic information (77%); internet access (73%); news (69%) and social media (67%). 

     

    •      Tech motivators 
    •           • Family and entertainment are the top motivators for adults 50-plus. 
    •           • 78% rely on technology to stay in touch with friends and family. 
    •           • 65% use smart TVs, 37% use connected devices such as Apple TV, and 26% use smartphones for streaming entertainment. 

     

    •      Home tech adoption 
    •           • Between 2017 and 2022, home tech adoption among those 50-plus has risen 17%, to 24% — nearly matching the 27% of those under 50 who use home tech. 
    •           • The percentage of those 50-plus who use home tech every day is high: 78% for those 50–59; 88% for those 60–69; and 78% for those 70-plus. 
    •           • There is an opportunity across ages for a mindset shift on tech that exists for home safety: Among those 50-plus, 37% are unaware of smart, robotic devices used for companionship and entertainment; 25% are unaware of sensors that detect if someone falls and calls for emergency help; and 23% are unaware of electronic systems that let loved ones know they are OK or if daily routines change. 

     

    •      Health and tech
    •           • 42% of adults 50-plus agree that technology enables a healthy life. 
    •           • 21% of older adults either currently use tech to improve their health and well-being, or are interested in using it. 
    •           • Adults 50-plus use a variety of health apps: 34% for exercise; 22% for nutrition; 20% for weight loss; and 17% for sleep. 

     

    •      Purchase drivers
    •           • People 50-plus are a key market for tech replacement and gift-giving. 
    •           • Purchase triggers for tech items among older adults: 40% to replace an older or broken similar item; 19% for a new household item. 
    •           • 65% of people 50-plus say they are likely to purchase a tech gift; that’s equivalent to 80.5 million adults aged 50-plus in 2023. 

     

    •      Barriers to adoption
    •           • 68% of adults 50-plus feel that tech is not designed for their age group in mind. 
    •           • Tech must do more to address the barriers that older consumers experience, including design and user experience, awareness and interest, and cost and acquisition. 

     

    •      Marketing to people 50-plus
    •           • When showing older people using technology, show images that signal comfort and confidence. 
    •           • Choose images that accurately depict how older adults use technology. 

     

    Interested in learning more? You can read the full report here. 


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