Gen Z drives surge in UK tech subscriptions as ownership declines
New data shows device subscriptions in the UK have risen 57% year-on-year, with Gen Z driving the fastest growth in this market shift.
Raylo, a technology subscription platform partnered with brands such as Apple and PlayStation, has released figures indicating a significant rise in demand for subscription-based access to consumer electronics. This growth, the company stated, contrasts with the slower expansion of more established digital subscription services such as music and video streaming.
The transition from outright ownership of devices like mobile phones, laptops, and gaming consoles to flexible subscription models is most pronounced among 18 to 28-year-olds. According to Raylo, this demographic now nearly doubles its subscription uptake year-on-year and subscribes at a rate 70% higher compared to older generations.
Raylo reported that 82% of its subscribers said they would have either delayed or scaled down their purchase had a subscription option not been available. In addition, customers subscribing to devices save, on average, 23% compared with traditional retail financing over 36 months.
Market trends
The company contextualised this trend within a broader national move towards subscription-based consumption. Britons have widely adopted subscriptions for software and media, with 85% of the UK population using video-on-demand services on a monthly basis according to industry data. Until recently, however, the hardware powering these services was typically bought outright through one-off payments or instalment credit arrangements that often included interest charges.
The Raylo data indicates this established approach is changing. Demand for accessing devices via subscriptions is rising rapidly, especially among younger consumers, as growth in mature subscription sectors slows.
"Today's consumers, especially Gen Z, are tech-savvy, eco-conscious, and subscription-native, already subscribing to everything from their cars to their clothes. Devices are the next category to go subscription-first, offering a more affordable, flexible, and sustainable alternative to traditional ownership. Within five years, we expect more than 50% of tech will be enjoyed this way, impacting how businesses engage this generation," says Karl Gilbert, Founder and CEO at Raylo.
Gilbert highlighted that the shift could lead to half of all consumer tech being subscription-based within five years, fundamentally altering how businesses interact with younger generations.
Industry response
Major electronics brands are adjusting to this behaviour by deepening their engagement with subscription models. Apple and PlayStation are among the companies offering devices through Raylo's subscription infrastructure. PlayStation, for instance, recently launched its PlayStation Flex offering through Raylo's platform on its eCommerce store earlier in the year.
According to Raylo, brands gain more than just revenue from this approach. Subscriptions allow companies greater oversight of secondary device markets, promoting circular reuse and contributing to supply chain efficiency at scale.
"This isn't just a Gen Z trend, but a fundamental shift in how technology is bought and sold, and a vital step toward the UK's vision of a more resilient, circular economy," adds Gilbert.
Raylo has secured over GBP £150 million in total funding to date, with support from investors such as Macquarie and NatWest. The company noted that its infrastructure supports a move from 'single-use' to what it describes as circular, customer-centric business models.
Later this month, Raylo plans to expand its reach beyond electronics by launching a partnership in the beauty and household appliance segment. This step, the company said, will bring subscriptions to new categories within the consumer sector.
The statistics released by Raylo are based on data from over 100,000 consumers and businesses between October 2024 and October 2025. These figures point towards a significant and ongoing transformation in the way UK consumers access technological products, influenced by generational preferences, cost of living pressures, and sustainability considerations.
