2026 Predictions for Consumer Electronics Product Development: AI, Sustainability, and the Rise of Connected Ecosystems
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2026 Predictions for Consumer Electronics Product Development: AI, Sustainability, and the Rise of Connected Ecosystems
As we move closer to 2026, product development feels more like an evolving journey full of fresh ideas, new challenges, and real opportunities to create something better.
To kick off our annual predictions series, we turned to our own expert, Patrick Garman – Manager, Solutions & Consulting, Jama Software, for his take on what’s around the corner in the world of Consumer Electronics. If there’s one thing that stands out, it’s how fast everything is changing. New technologies are always pushing the boundaries of how products are dreamed up, built, and experienced.
In part one of this series, Patrick dives into how AI is shaking up the design process, why making products more sustainable and built to last matters more than ever, and how connected ecosystems are rewiring our expectations. He also tackles big-picture topics like data privacy and the need to build stronger, more adaptable supply chains.
Keep reading as Patrick takes a closer look at where consumer electronics might be headed, from the latest tech breakthroughs to the real-life hurdles and wins shaping the industry’s next chapter.
Curious about what’s happening in other fields? Read our predictions on Automotive, Aerospace & Defense, Semiconductors, Medical Devices & Life Sciences, and more.
Emerging Technologies
Q: What emerging technologies (e.g., edge computing, IoT, AI-driven automation, smart materials) will most transform the electronics industry in the next five years? How should companies prepare to adapt and innovate?
Patrick Garman: The next five years will be transformative for the electronics industry with innovations like modular chips, Edge AI, and AI driven engineering as the principal drivers.
Historically, chip performance has depended on how many transistors can fit onto a single die, and we are near a physical limit on this approach. Luckily, UCIe (Universal Chiplet Interconnect Express) open standard allows designers to mix and match process nodes, IP, and vendors to build tailor-made systems faster and cheaper.
Edge AI is moving intelligence and inference closer to the source of data – in the actual device. With neural processing units (NPUs) and advances in connectivity like WIFI 7 and 5G-Advanced, devices can perform sophisticated inference in real time. Consider Apple Intelligence, which runs most operations locally, only connecting to data centers or external services as needed. Edge AI means lower latency, better data privacy, and less dependence on cloud bandwidth – meaning smarter, more responsive products. For manufacturers, this also enables predictive maintenance, adaptive control, and more efficient energy use.
And finally, AI not just as a feature but as a collaborator in the design process. AI-assisted electronic design automation (EDA) is already accelerating design cycles, with early adopters reporting 2-3x productivity gains and faster time to market, often with improved design quality. These systems can learn from thousands of past layouts and simulations to guide engineers toward optimal designs faster than human intuition alone, and we are not far from reliable agentic design flows, where an AI model coordinates the entire toolchain, from schematics to verifications, autonomously.
Ultimately, competitive differentiation will no longer be based on performance and cost, but on how quickly and intelligently companies can adapt.
Sustainability and Circular Design
Q: How are sustainability initiatives—like reducing e-waste, improving recyclability, and minimizing carbon footprint—shaping product development and manufacturing strategies? What practices will define leaders in this space?
Garman: Sustainability is really starting to change how consumer electronics are designed and made. Companies are starting to think about how to make products that last longer and create less waste. That means designing things that are easier to repair or upgrade, using recycled materials, and finding ways to take apart and reuse components when a product reaches the end of its life. Some manufacturers are even rethinking how circuit boards are built so the parts can be separated more easily for recycling. On the production side, many are switching to cleaner energy sources and trying to reduce packaging and transportation emissions.
For a long time, sustainability has been more of a social cause, but now regulation is coming that will make sustainability its own requirement for products. The EU seems to be leading this charge with Sustainable Design Regulations and Digital Product Passports. I think savvy companies will be proactive in complying with the EU standards – taking the strictest state approach. In the long run, the brands that focus on making durable, repairable, and responsible products are the ones that will earn the most trust from customers.
RELATED: https://www.jamasoftware.com/webinar/agile-compliant-and-competitive-fast-trackingconsumer-electronics-innovation/
Smart and Connected Products
Q: How do you see connectivity and data analytics changing the way products are designed, used, and supported? What are the most promising opportunities for delivering value through connected ecosystems?
Garman: One of the biggest benefits is that designers no longer have to rely on assumptions about how products are used – embedded sensors and connected feedback loops provide real-world and real-time observations. This not only shortens design cycles; it reveals new use cases and patterns and supports predictive modeling so that companies can develop more reliable, efficient, and user-centered products.
This connectivity also provides benefits for consumers – over-the-air updates, edge AI, and cloud coordination allow products to adapt to users, optimize performance in context, and anticipate service needs before failures occur. HP’s ink subscription program is a good example – their connected printers track ink supply levels and proactively order replacement cartridges just in time to avoid outages.
The greatest opportunity, though, is to move from individually connected devices to connected ecosystems. When devices, analytics, and digital services share data securely, companies can deliver cross-domain experiences. Smart home hubs are just scratching the surface in terms of automation – they are still pre-programmed routines that are responsive to conditions rather than predictive or even contextual.
AI and Automation
Q: How is AI transforming design verification, testing, and quality assurance in electronics design and manufacturing? What challenges do companies face in scaling automation while maintaining flexibility?
Garman: Ultimately, AI will transform verification, testing, and quality assurance into intelligent, adaptive processes rather than static checklists. We are already seeing machine learning models that can predict where design flaws are most likely to occur, automatically generate test scenarios (a la Jama Connect AdvisorTM’s Test Case Generation feature currently in beta), and analyze simulation or production data to optimize coverage. This means faster V&V cycles without sacrificing quality – most likely increasing quality over time. Human judgement will not be replaced in our lifetime, but the efficiency gains mean engineers focused on engineering rather than administration and management.
Ethical and Responsible AI
Q: As electronics become more intelligent, how can companies ensure responsible use of AI and protect consumer privacy? What frameworks or standards are most critical for responsible implementation?
Garman: Data stewardship and privacy protection should be core design principles. Ensuring privacy and ethical use begins with transparency, consent, and control – consumers should know when AI is making decisions, what data is being collected, and how it will be used. It’s also incredibly important that AI systems are auditable – you can clearly trace outcomes and prove that they are justifiable, especially in safety-critical or consumer facing applications.
As for frameworks and standards, I recommend a strictest state approach – design for compliance with your strictest regulatory market, which today is probably the EU. The EU Artificial Intelligence Act, OECD AI Principles, and NIST AI Risk Management Framework all emphasize human oversight, transparency, and accountability, while GDPR, ISO/IEC 27701 and ISO/IEC 27001 provide a foundation for secure data governance.
Consumer Expectations
Q: With consumers expecting seamless connectivity, personalization, and sustainability, how do you see these preferences influencing the next generation of products? What innovations will drive brand loyalty?
Garman: Three pillars that influence consumer expectations and brand loyalty are seamless connectivity, meaningful personalization, and visible sustainability. The next generation of products will succeed not by adding more features, but by delivering frictionless, adaptive experiences that feel integrated across devices and ecosystems.
Products will increasingly communicate and learn from one another—phones coordinating with vehicles and wearables, appliances responding to home energy data—creating personalized environments that anticipate needs rather than react to commands. AI and edge computing will make this contextual intelligence local, fast, and privacy-preserving, while modular hardware and software platforms will allow updates and upgrades throughout the product’s life.
Sustainability will also become a defining factor in brand loyalty. Consumers want devices to be designed for longevity and repairability. Companies that combine intelligent design with ethical production—using recycled materials, energy-efficient architectures, and verifiable carbon reporting—will differentiate themselves as trusted, forward-looking brands. Ultimately, successful products will simplify ownership and offer more personal experiences.
RELATED: Buyer’s Guide: How to Select the Right Requirements Management and Traceability Solution
Supply Chain and Resilience
Q: What lessons from recent supply chain challenges can the electronics industry apply to improve resilience and reduce dependency on vulnerable regions or components?
Garman: The past few years have shown the electronics industry that running super-lean supply chains can backfire. When the pandemic and chip shortages hit, companies learned the hard way how risky it is to depend on just a few factories, regions, or single-source parts.
The big takeaway is that resilience matters as much as efficiency. Leading manufacturers are now spreading production across multiple regions, qualifying backup suppliers, and designing products that can use alternative components when needed. They’re also using data and digital twins to spot weak links early and plan around potential disruptions instead of reacting after the fact.
Modular products and standardized interfaces make it easier to swap parts or shift suppliers without starting from scratch. Teams are breaking down silos between engineering, procurement, and logistics so they can move faster when problems arise. In short, the focus is shifting from chasing the lowest cost to building smarter, more balanced supply chains—ones that can bend without breaking. Having live traceability from product requirements to parts is key to success.
Cybersecurity in Connected Devices
Q: As the number of connected devices grows, what cybersecurity threats are most pressing for manufacturers and users? How can companies build trust through secure-by-design principles?
Garman: Companies need to move from “add-on” security to secure-by-design thinking. There are probably more smart devices in market today than non-connected devices, making cyber security a top concern for consumers (and thus for companies designing products). The biggest risks come from things like hacked supply chains (where bad code slips in before a product ships), weak passwords or outdated firmware, and unprotected data in transmission.
Secure-by-design means building protection in from the start – using strong encryption, verified software updates, and secure hardware to keep data safe. It also means being clear and transparent with consumers about what data is collected and how it will be used. Conforming to standards like ISO 27001 and the NIST Cybersecurity Framework, and proactive compliance with the EU Cyber Resilience Act or US Cyber Trust Mark demonstrate a commitment to cybersecurity principles and build trust with consumers, but again, transparency is going to be key.
Regulatory and Compliance Challenges
Q: How are global regulations on safety, energy efficiency, and data protection affecting electronics innovation? How can companies balance compliance with speed to market?
Garman: Overall, governments have been slow to keep regulatory pace with technical innovations, but this is rapidly changing. We’re seeing new rules to help make products safer, more energy efficient, and to protect consumer data. Things like the EU’s Cyber Resilience Act or new energy labeling standards are pushing companies to design electronics that are not just clever, but also secure and sustainable. It does make development a bit more complicated, but it’s also forcing better design—like using parts that are easier to recycle, making software more secure, and being upfront about how data is handled.
It’s difficult to achieve compliance – especially when regulations are continually evolving – without sacrificing speed, but that does not mean it’s impossible! The key is to build compliance into your requirements management process so you have traceability from regulatory requirements to your product requirements, so you can show how you are complying, and V&V so that you can prove that you are compliant.
Future Trends
Q: What technological or market trends do you believe will still be shaping the electronics industry in five to ten years? How can companies remain agile and competitive in an era of rapid innovation?
Garman: For companies, staying competitive will mean staying flexible. That means designing products and organizations that can adapt quickly using modular architectures, software-driven features, and strong digital ecosystems that make updates easy. It also means keeping close ties between engineering, supply chain, and compliance teams so they can respond fast when technology or regulations shift. The winners will be the ones that move quickly and keep trust: innovating at speed, but with security, sustainability, and customer experience built in from the start.
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Manager, Solutions & Consulting at Jama Software
I take great joy in exploring how technology can be applied to business problems in new and unexpected ways to create fluid experiences for customers.
I hold a B.A. from Sewanee: The University of the South and an MBA from Goizueta Business School at Emory University. My professional experience includes project management, new product development, customer insights, and marketing strategy and spans the health, hospitality, transportation and logistics, public, and retail sectors.
I am based in Birmingham, Alabama, with my partner Ian and enjoy live music, cooking, coffee roasting, and spending time with our dogs Toby and Jude and our cat Isabella Rossellini.
I can be reached at garmapq@gmail.com.
I hold a B.A. from Sewanee: The University of the South and an MBA from Goizueta Business School at Emory University. My professional experience includes project management, new product development, customer insights, and marketing strategy and spans the health, hospitality, transportation and logistics, public, and retail sectors.
I am based in Birmingham, Alabama, with my partner Ian and enjoy live music, cooking, coffee roasting, and spending time with our dogs Toby and Jude and our cat Isabella Rossellini.
I can be reached at garmapq@gmail.com.
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