SMART TV MARKET ANALYSIS
Global smart TV market is estimated to be valued at USD 421.03 Bn in 2024 and is expected to reach USD 876.42 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11% from 2024 to 2031.
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Smart TVs provide advanced features like internet connectivity, access to streaming apps and content, and voice assistants. Rising preference for connected devices and increasing internet penetration can boost demand for smart TVs globally.
Market Driver - Increasing Demand for Converged Media and Entertainment
Evolving entertainment needs and preferences of consumers can drive the smart TV market growth. Traditional television is no longer enough to satiate the appetite of modern audiences who seek an immersive and engaging experience. These people want to access all forms of media through a single screen and smart TVs have emerged as the ideal platform to provide a converged experience.
Nowadays, viewers are used to consuming different types of content such as live TV shows, movies, web videos, music, games, photos and more across multiple devices. Juggling among different gadgets is inconvenient and interrupts the viewing experience. Smart TVs eliminate this hassle by integrating all media in one elegant package. Users can browse live TV channels, stream movies and shows online from various OTT platforms, play games, connect with mobile devices and social networks, all from the comfort of their living room.
On-demand and personalized content consumption has also become a priority for people. Smart TV software along with app stores provide endless options to watch or download content anytime, anywhere without any schedule restrictions. Compelling features such personalized recommendations, playlists and cloud recording services further enhance the fun element. Viewers can now binge-watch their favorites with ease.
The proliferation of premium over-the-top (OTT) streaming platforms during pandemic has widened entertainment options. Many people shift to online streaming altogether to cut cord from expensive cable packages. Smart TV emerges as a single gateway to access increasingly popular streaming giants Netflix, Amazon Prime Video, Disney Hotstar and more on large television screens. Seamless content discovery and integrated payment platforms boosts demand for such connected devices.
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Growing Penetration of High-Speed Internet
Ubiquitous high-speed connectivity across regions can drive the smart TV market growth. Fast and reliable internet penetration delivers on the promise of television experience beyond traditional broadcasts. It empowers smart features and unlocks true potential of online content viewing.
Globally, fiber and 5G networks are extending high bandwidth coverage to both urban and remote areas. Majority of developed economies now have access to speeds well above basic requirements for HD video streaming. Even developing regions are making rapid progress towards universal 4G/LTE coverage and rural fiberization.
As internet speeds improve at affordable costs, streaming high definition and even 4k videos on large screens become a reality. Smart TVs leverage this high-speed road through apps and built-in Wi-Fi or Ethernet to deliver entertainment satisfying modern tastes. Advanced connectivity also enables smooth gaming experience on television.
Rising internet speeds boost adoption of smart functionality to maximize home network usage. Users are more willing to pay premium for large screens that leverage the power of online world. This prompts television manufacturers to innovate smart platforms matching network advancements. Better specifications attract early technology adopters, further mainstreaming the category.
High-speed internet rollout addresses a major barrier holding back app-based features of television. As connectivity penetrates deeper worldwide, there will be huge demand for products optimized for the digital environment and online viewing.
Key Takeaways from Analyst:
Global smart TV market growth is driven by factors like rising disposable incomes in developing countries, lower prices of smart TVs as compared to previous years, and innovative features offered by brands. Many households, especially young consumers, prefer smart TVs due to its connectivity features and content options.
Data privacy and security is a major concern for users. As smart TVs become more connected to the internet and external devices, the risk of cyber-attacks increases. Lack of standardization between platforms also poses challenge as content and features availability varies drastically across brands. The ongoing trade war can also impact prices if supply chains are disrupted.
Market Challenge - High Initial Investment and Cost of Upgrading
Global smart TV market growth can be hampered due to high initial investment and cost of upgrading required for both manufacturers and consumers. Developing advanced features and functionality for smart TVs requires massive R&D expenditures. Integrating cutting-edge technologies like artificial intelligence and internet-of-things are quite expensive. These increased costs are eventually passed on to the consumers, thus, making smart TVs out of reach for price-sensitive customers. For existing smart TV users, seamless connectivity with other smart devices and access to latest entertainment applications demands frequent upgrades and purchase of new models. However, most customers are hesitant to frequently bear the expenses of TV upgrades just to access novel features. Increasing pace of technology innovations has further shortened product life cycles and prompts more frequent replacements, adding to the ownership costs. Unless these barriers related to initial investment and upgrading costs are reduced, it will be difficult to achieve large-scale penetration of smart TVs globally.
Opportunity- Expansion of Content Ecosystem
Expansion of the content ecosystem available for viewers can offer market growth opportunities. As broadband and cellular connectivity expands across the world, there is a growing market for over-the-top media services delivering video and audio content. Major players like Netflix, Amazon Prime Video, YouTube and many regional providers have started offering their vast libraries of TV shows, movies, news and podcasts that can be seamlessly played on smart TVs. This explosion of digital content from various sources presents virtually limitless options for personalized entertainment consumption on smart TVs. The interactive and connected nature of smart TVs allows seamless discovery, choice and access to such a diverse array of content anytime anywhere. Further integration of smart TVs with virtual assistants, augmented reality and voice commands can enhance the content discovery and viewership experience multi-fold. This expanding content ecosystem can boost consumer demand and ownership of smart TVs globally.
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Insights By Screen Size - Affordability and Practicality Drives 40 to 50-Inches Segment Growth
In terms of screen size, 40 to 50 inches segment is estimated to contribute the highest market share of 33.5% in 2024, owing to its optimal balance of size and affordability. This screen size category appeals to a wide range of consumers thanks to several key advantages.
From a cost perspective, 40 to 50-inch TVs strike a practical sweet spot. Their screens are large enough to deliver an immersive viewing experience but come at mid-range prices that are within financial reach for most households. As affordability is a top priority for budget-conscious buyers, the relatively low prices of these TVs help maximize their appeal.
40 to 50-inch category is sized well for moderate-sized living rooms and bedrooms. Their screens are sizable without dominating smaller spaces or requiring unwieldy large stands that would be difficult to accommodate. Whether mounting the TV on a wall or using a stand, setup and placement is generally easier compared to larger screen sizes.
40 to 50-inch smart TVs achieve the perfect balance of value and practicality. Their affordability, appropriate size for common rooms, and ease of handling have made this screen size exceptionally versatile and widely adopted among smart TV shoppers.
Insights By Display Technology - Superior Picture Quality Drives LED Technology Dominance
In terms of display technology, LED segment is expected to contribute the highest market share of 46.5% in 2024 due to its advantages for delivering high-quality images. As screen quality is a leading purchase factor, LED has cemented its status at the forefront of the display technology segment.
Relative to competing technologies, LED televisions provide superior color accuracy, brightness, and black level performance straight out of the box. Their pictures exhibit vibrant, lifelike colors and inky dark scenes without the need for extensive calibration or adjustments.
LED screens boast impressive overall uniformity with no uneven or dirty screen effect. Whether watching a movie or gaming, viewers enjoy clear, detailed pictures across the entire display without distracting hotspots, flashes, or flaws. Compared to other options, LED TVs are highly power-saving without sacrificing performance. Their efficient backlighting helps lower electricity bills, a benefit that grows more appealing to eco-conscious consumers over time.
With best-in-class images and efficient operation right out of the store, LED has proven its value for money.
Insights By Operating System - Extensive App Selection Fuels Android TV’s Popularity
In terms of operating system, android TV segment is expected to contribute the highest market share of 34.3% in 2024, owing to its extensive app ecosystem. Access to thousands of apps tailored for big-screen enjoyment has made Android OS the system of choice for smart TV fans and cord cutters.
Running Google's popular Android software, Android TV delivers seamless access to the widest selection of apps available for any TV operating system. Viewers can install practically any app these use on mobile, from Netflix and YouTube to games and fitness apps. The immense app library pairs perfectly with large TV screens.
Furthermore, as smartphones and tablets using Android far outnumber competing mobile platforms, most third-party developers prioritize creating Android versions of their apps first. As a result, Android TV enjoys the earliest availability of new and updated streaming, entertainment, and other optimized applications.
Alongside its app breadth, Android TV offers swift, smooth performance supported by Google. Its simple, user-friendly interface keeps content discovery and navigation frustration-free. Regular software updates also ensure Android TV stays fresh and compatible with new content sources over the years.
Unlimited access to the richest apps marketplace has empowered Android TV to dominate the operating system segment. Its place is secured by delivering the most integrated connected experience desired by smart TV users.
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North America has established itself as the dominant region in the global smart TV market with an estimated market share of 41.9% in 2024. The U.S. boasts high disposable income of consumers who are early adopters of new technologies. These are constantly switching to the latest TV models featuring enhanced internet and streaming capabilities. This has provided a fillip to smart TV sales. The presence of tech giants like Apple, Google and Amazon who are investing heavily in user-friendly platforms and content has widened the appeal of smart TVs. Wide availability of high-speed internet and affordable data plans have further fuelled online content consumption through these internet-connected TVs. With over 70% smart TV penetration currently, the region signifies the future of television viewing which centers around smart features and content streaming.
Asia Pacific region has emerged as the fastest growing market globally led by China and India. Massive manufacturing capabilities of TV brands in these countries coupled with competitive pricing makes smart TVs highly accessible to people. China, with its enormous consumer base, is a lucrative market already accounting for over a third of the APAC market. Government initiatives to improve connectivity in India have bolstered the demand for smart TVs among its youthful population inclined towards OTT media consumption. Local content tailored for these markets also adds to the desirability of smart TVs over regular models. The growth trajectory is further encouraged due to low smart TV penetration currently standing at around 35% indicating scope for future expansion. The changing viewing habits and increasing preference for streaming content on mobile and smart devices can boost growth of connected TV ecosystem in Asia Pacific.
Smart TV Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 421.03 Bn |
| Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
| Forecast Period 2024 to 2031 CAGR: | 11% | 2031 Value Projection: | US$ 876.42 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Amazon.com, Inc., Apple Inc., Hisense Group Co., Ltd., Hitachi, Ltd., LG Electronics Inc., Microsoft Corporation, Panasonic Corporation, Philips, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, TCL Corporation, Texas Instruments Incorporated, Toshiba Visual Solutions Corporation, and VIZIO Inc. |
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| Restraints & Challenges: |
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*Definition: Global smart TV market consists of manufacturers, distributors, and retailers involved in the production, distribution, and sales of internet-connected televisions with integrated apps and services. Smart TVs allow users to access over-the-top content from various streaming services, browse the internet, download third-party applications, and control smart home devices through voice commands.
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About Author
As an accomplished Senior Consultant with 7+ years of experience, Pooja Tayade has a proven track record in devising and implementing data and strategy consulting across various industries. She specializes in market research, competitive analysis, primary insights, and market estimation. She excels in strategic advisory, delivering data-driven insights to help clients navigate market complexities, optimize entry strategies, and achieve sustainable growth.
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