Remote work and hybrid work options are here to stay. The success achieved by remote work’s “experiment” has left a permanent effect on employee priorities, and a significant percentage of the workforce will continue working remotely, driving investment in supporting connectivity hardware and software solutions.

As chip shortages and other supply chain issues that constrained the sector improve, we expect a burst of consumer spending on devices, enhancing remote work productivity. Based on a target audience of ~38 million remote working households and Parks Associates survey data measuring purchase intent, we estimate retail expenditure for external webcams and wireless routers could total over $750 million during the next six months. Additional spending is also likely to accrue in related office equipment (desks, ergonomic chairs) and electronic accessories (printers, monitors, microphones, docking stations).

Planned Spending on Equipment for Work at Home

However, these new work environments and models will take time to mature – a common theme in technology forecasting is Amara’s Law, which states one tends to overestimate the short-term impact of a change and underestimate its effects in the long run, especially for society. It is indeed possible that a recession inflicted by current macroeconomic threats will tip the balance in labor markets back towards firms, correcting employee expectations and bargaining power to historical norms.

Amid such uncertainty for the immediate term, numerous opportunities exist for firms to capitalize on current implementations of remote work:

•  Internet service providers should test “remote worker” packages combining faster speeds and value-added services like managed Wi-Fi (a key foundation), whole-home cybersecurity, and premium support. Streamlining billing practices to facilitate direct payment by employers will likely drive higher rates of employer reimbursement with benefits for all involved.
• Gateway device manufacturers and cybersecurity vendors should continue forging ISP partnerships to reflect the decreasing importance of DTC retail channel sales. They may consider participating in open-source ecosystems, leveraging other developers to expand their install base and lay a foundation for new business models based on sharing data.
• Videoconferencing providers and manufacturers should expand upon existing HaaS offerings to increase the affordability of prosumer-level solutions; they should also consider targeting upscale MDUs needing to differentiate their properties in crowded urban markets.
• Communications and collaboration platforms should leverage data analytics into new solutions optimizing worker/team workflows, especially when distributed across multiple locations. Focus on features that promote company cohesion and enable remote employee training, as these issues remain continued concerns among senior executives.

Organizations and individuals that fully grasp the immensity of this shift and develop new management practices and workflows accordingly will be those that flourish in the years ahead.

This is an excerpt from Parks Associates research library. For information on our research reports and services, please visit www.parksassociates.com or contact any of our team members.

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