JAN 2023

Yory Wurmser

CES 2023
AI, Matter, and the Metaverse Star in Tech’s Big Showcase

Contributors: Jasmine Enberg, Jessica Lis, Gadjo Sevilla

CES 2023: AI, Matter, and the Metaverse Star in Tech’s Big Showcase
For the first time in three years, CES delivered its customary crowds and hype around new technologies. But not all the
announcements were buzzworthy. We tease out five big trends that will matter most for media and marketing.

KEY QUESTION: How will the technologies announced

at this year’s annual CES influence the way people
communicate with each other and businesses?

KEY STAT: The number of exhibitors at CES have bounced

back from the effects of the pandemic—but not 100%.

Contents
2 CES 2023: AI, Matter, and the Metaverse Star in Tech’s
Big Showcase
3 AI—Including ChatGPT—Was the Talk of the Show
3 New Devices Bring a Much-Needed Boost for
the Metaverse
4 Matter Rejuvenates Smart Home Technology
4 Cars Turn Into Media Hubs
5 Satellites Bring Connectivity to New Places
6 Key Takeaways for Media Companies and Marketers
6 Read Next
6 Sources
6 Editorial and Production Contributors

Copyright © 2023, Insider Intelligence Inc. All rights reserved. Page 2

 AI—Including ChatGPT—Was the US Venture Capital Investment Activity in the
Generative AI Sector, 2017-2022
Talk of the Show billions and number of deals
$1.4
AI was everywhere at CES, powering everything from
content creation applications to machines that analyze 85
78
mood and general well-being.
$1.1

■ In the wake of ChatGPT, generative AI is all the 50

buzz. This year’s CES included the creator economy in a
big way. And a big source of discussion centered on how
ChatGPT and other generative AI tools would change 24

creator workflows and workforce. Nvidia, KIRI Engine, 13 14

$0.2 $0.2
and others amplified the buzz by displaying new video,
speech, and 3D image generations tools. $0.1 $0.1
2017 2018 2019 2020 2021 2022
■ AI lets devices sense context. Whether it was Govee’s Venture capital investment activity in the generative AI sector
light systems that change tones in response to your Number of deals

gameplay, Samsung’s smart oven that chooses the Source: PitchBook, Jan 1, 2023

appropriate baking times and temperatures based on 279838 InsiderIntelligence.com

what you’re cooking, or Landroid’s robotic lawnmower

that cuts grass (and nothing else), machines at CES
autonomously know what you want from them—and New Devices Bring a Much-Needed
do it.
Boost for the Metaverse
■ It can even detect moods. Fitness trackers were the
first big wearables more than a decade ago, but this The metaverse swung from hype to disillusionment in
year, smartwatches like the Citizen CZ Smart searched 2022. This year’s CES event in Las Vegas revealed a
for signs of stress with the help of IBM Watson. Others, slew of new devices that hint at what the metaverse
such the Evie ring, Oxa Life shirt and bra, and the could become—and what will drive broader adoption.
Nowatch smartwatch all tracked stress levels along with
other biomarkers. ■ Less bulky devices entice more than the hardcore
gamer. Notably, HTC’s Vive XR Elite delivered a cutting-
Why it matters: AI will have seismic effects on marketing
edge mixed reality experience in a light and untethered
workflows, making it easier to test ideas, create dynamic
headset. Similarly, Lumus, Vuzix, and TCL displayed
creative, and deliver more personalized messages. At the
augmented reality (AR) smart glasses that looked
same time, marketers will need to raise their awareness of its
fashionable enough for everyday wear. And screens and
risks, including biased algorithms and privacy infringement.
laptops from Breylon, 3DGM, and Asus delivered vibrant
3D experiences without a headset.

■ Price and uncertain release dates keep audience

limited. The Vive XR Elite should arrive in Q1 2023
but will cost over $1,000. Many of the other devices
will come out later this year but with professional or
hardcore gamers in mind, while smart glasses are more
concepts to display tech for niche use cases. They hint
at possibilities but likely won’t break through as mass
consumer products in the short term.

Copyright © 2023, Insider Intelligence Inc. All rights reserved. Page 3

■ A new genre of devices goes beyond vision. Haptic and Homey, displayed hubs. But the bigger opportunity
vests, gloves, and full suits from bHaptics and Owo lies in the digital interfaces controlling these devices,
add touch to virtual reality (VR), while companies which should empower virtual assistants and apps
such as OVR and Aromajoin demoed headsets with serving as digital control centers.
aroma canisters capable of producing scents. As with
headsets, they serve a niche audience of gamers or
■ Better integration could lead to more elaborate
serve as concept devices. uses. Govee, Twinkly, and Nanoleaf introduced smart
light systems that could work together, interpret
What this means: It’s too soon to write off the metaverse ambient sound or music in the room, and even present
as a fad, but it may take a few years before most consumers message or videos. Lighting has the potential to
adopt metaverse technologies—although businesses may become its own media format.
find earlier use cases.
What this means: A more integrated smart home raises the
importance of virtual assistants and opens the door for new
AR/VR Device Shipments Worldwide, 2017-2026 forms of media—and marketing—within the home.
millions
66.8
US Smart Home Device Households, by Category,
2022-2026
% of total households

40.7
38.0%
36.6%
34.8%
33.0% 33.0%
31.5%
19.1 30.5%
29.5% 32.5%
11.0 11.4 27.9% 31.0%
10.1 9.6
8.2 7.2 7.4 26.1% 29.0%

26.0% 26.0%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 21.0% 24.7%
22.8%
Note: includes standalone VR, tethered VR (PC, console, or smartphone), smartphone shell
VR, AR smart glasses, and enhanced AR 20.7%
Source: CCS Insight as cited in press release, Dec 14, 2022 18.5%
279564 InsiderIntelligence.com
2022 2023 2024 2025 2026
Security Utility Lighting Appliance

Note: households that actively use each device at least once per month
Matter Rejuvenates Smart Source: Insider Intelligence, Aug 2022
279329 eMarketer | InsiderIntelligence.com
Home Technology
The universal smart home protocol Matter was one
of the stars at CES. Launched last November, Matter
Cars Turn Into Media Hubs
solves a lot of interoperability problems that have
Most of us drive a connected car and connect to
plagued growth in smart home devices.
media—think your Spotify app. CES, however, revealed
■ Broad uptake of Matter could herald its long-term vehicles that will amp up media in innovative ways.
success. Most manufacturers displayed smart home
devices compatible with Matter, which allows devices
■ Heads up displays turn in-car AR into a reality. The
from different manufacturers to seamlessly connect and BMW i Vision Dee displayed an AR overlay that projects
operate with one another. images across the whole windshield. Continental and
Samsung’s Harman also displayed similar versions.
■ Hubs for devices will become more important. Vision Dee even allowed drivers to black out their
Although Matter gives devices a common language, windshields to be immersed in a virtual world—though
they still need to connect with each other wirelessly. fully autonomous driving is still years away.
Several manufacturers, including Samsung, SwitchBot,

Copyright © 2023, Insider Intelligence Inc. All rights reserved. Page 4

■ Concept cars let users emote through their Satellites Bring Connectivity to
vehicles. Cars such as the Afeela (a joint venture by
Sony and Honda) and BMW’s i Vision Dee included
New Places
all types of tech demos, including giving drivers the
ability to express themselves by changing the external 5G has taken over past CES exhibitions, but the big
lighting and color of the car and even reproducing facial connectivity news this year was the partnerships
expressions in the grille. between mobile networks and satellites.

■ Digital cockpits combine sensors and media. ■ Satellites could improve service to remote or
Stellantis and Amazon announced a partnership to build otherwise unconnected regions. Apple turned on
the next generation of Stellantis’ STLA SmartCockpit, an SOS service in November that connected iPhones
which will connect to media, Alexa, and an ecommerce with satellites for the first time. The system is a one-
marketplace. Amazon also introduced a way to find way emergency beacon, but other groups announced
and pay for electric charging stations, while numerous partnerships at CES: Bullitt, Motorola, and satellite
companies highlighted sensors as part of driver network Skylo announced a two-way messaging
monitoring systems that ensure driver well-being. service; Qualcomm and Iridium announced two-way
services for Android phones with a new Qualcomm
Why it matters: As with the more integrated smart home,
chip; and Garmin announced it will integrate its Garmin
next generation digital cars will expand the range of media
Response emergency service into phones using the new
consumption and ecommerce possibilities—along with the
Qualcomm chip.
opportunity for new types of contextual marketing.
■ Satellite networks will also help bring broadband
to rural areas. Even where satellite networks don’t
US Connected Car Drivers, 2022-2026
millions and % of population connect directly with phones, they will provide easy
168.5
connections to cell towers or other network edge sites
163.0
157.3 in areas that don’t have fast broadband.
151.4
145.5
■ High-speed airplane connectivity will soon be
widely available. Delta is partnering with Viasat and
T-Mobile to offer free high-speed Wi-Fi for video
55.3% 56.9% 58.5% streaming and other broadband uses on its planes. It
52.0% 53.7%
will be free for all Delta SkyMiles members.

Why it matters: Better connectivity in new areas creates

new audiences for media—and possibly new services
as well.
2022 2023 2024 2025 2026
Connected car drivers % of population

Note: ages 14+; licensed drivers who drive a connected car and have accessed its internet-
enabled features at least once in the past year
Source: Insider Intelligence, Aug 2022
277934 eMarketer | InsiderIntelligence.com

Copyright © 2023, Insider Intelligence Inc. All rights reserved. Page 5

Key Takeaways for Media Read Next
Companies and Marketers
The creator economy flexes its muscle at CES
■ Pay attention to generative AI: It’s advancing
quickly and will be transformative. Generative AI
will alter media and marketing and make testing ideas Sources
and dynamic creative easier. It will also personalize
marketing in new ways, such as in response to moods, CCS Insight
but the dangers of both algorithmic bias and intrusive Pitchbook
uses of data will grow.

■ Don’t give up yet on the metaverse. Better quality Editorial and

VR, AR, and haptics make virtual worlds feel more real.
Matter and digital cockpits do the same for the smart Production Contributors
home and connected cars. But many of these advances
Anam Baig Director, Report Editing
remain pricey or more conceptual than full-fledged
Rahul Chadha Director, Report Editing
consumer products.
Matthew Corkins Copy Editor
■ Remain wary of the hype: Consumers may not Justin DeVoursney Graphic Designer
embrace devices they didn’t request. Consumers Joanne DiCamillo Senior Production Artist
haven’t asked for the metaverse or many of the Magenta Fox Senior Chart Editor
applications in the smart home or connected cars. With Donte Gibson Senior Chart Editor
a low enough price and clear utility or entertainment Katie Hamblin Director, Charts
value, they may love them, but the potential audience for Dana Hill Director, Production
each—particularly the metaverse—remains debatable. Erika Huber Line Editor
Ann Marie Kerwin Vice President, Content
■ Explore what you can do with new media and Kyndall Krist Copy Editor
contexts. Even if many of these devices fizzle, they Na Li Director, Primary Research
may pave the road for opportunities we can’t imagine Penelope Lin Senior Copy Editor
right now. It’s probably wise to take a closer look at Wendy Malloy Director, Report Editing
metaverse technologies and new media popping up in Jennifer Merritt Executive Editor
cars, homes, and planes. Stephanie Meyer Product Specialist
Heather Price Senior Director, Managing Editor
Erika Skorstad Copy Editor
Rachel Tatarek Senior Copy Editor
Amanda Woodman Copy Editor
Julia Woolever Senior Report Editor
Ali Young Senior Copy Editor

Copyright © 2023, Insider Intelligence Inc. All rights reserved. Page 6

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