Global smart TV market growth is driven by penetration of OTT platforms and growing internet penetration
Global Smart TV Market growth is driven by growing penetration of over-the-top (OTT) platforms and increasing internet penetration. Global smart TV market is estimated to be valued at USD 421.03 Billion in 2024, exhibiting a CAGR of 11% over the forecast period (2024-2031). Furthermore, rapid adoption of streaming services and advancements in smart TV technologies can also drive the market growth.
Market Dynamics:
Global smart TV market growth is driven by growing penetration of OTT platforms and increasing internet connectivity. Rising adoption of streaming services like Netflix, Amazon Prime Video, and Disney+ among others has increased demand for smart TVs globally. This encourages TV manufacturers to focus more on developing smart TVs with advanced software and seamless connectivity. Moreover, rapid urbanization and increasing disposable income levels in developing regions can boost internet penetration. Growing accessibility to high-speed internet can boost sales of smart TVs. Technological advancements in smart TV interfaces, improved Wi-Fi/Bluetooth connectivity and voice assistant features attracts more consumers.
Rising Demand for Large-screen and High-resolution TVs
Global smart TV market growth is driven by rising demand for large-screen and high-resolution TVs. Consumers across the world are increasingly looking for bigger and better viewing experiences at home as the cost of large TV panels declines. Smart TVs with large screens of 55 inches or more witness huge demand. These offer an immersive viewing experience for watching movies, sports, and playing games. The availability of 4K and 8K resolution smart TVs that deliver ultra-sharp pictures has boosted their sales. Consumers want the big-screen TV experience combined with internet connectivity for accessing digital content and apps.
Growth of Internet Penetration and OTT Platforms
Rapid growth of internet penetration and over-the-top (OTT) platforms globally can drive the market growth. As more households get broadband internet connections, there will be huge demand for connected smart TVs that allow seamless streaming of online video content. Popular OTT apps like Netflix, Amazon Prime Video, Disney+, and YouTube have made internet-connected TVs an essential part of the digital home entertainment experience. The availability of diverse streaming content in high definition from these platforms drive more consumers to replace their regular TVs with smart TVs that run on internet-connected smart operating systems.
High Cost of Panel Production
Global smart TV market growth can be hampered due to high cost involved in manufacturing large TV panels. Producing large panels with higher resolutions requires more sophisticated technology and manufacturing infrastructure. This leads to higher costs, especially for TV brands that do not have high production volumes. For many TV brands, bringing down the production cost to make large smart TVs more affordable remains a challenge. While economies of scale help reduce prices over the long term, panel costs can put pricing pressure in the short to medium term. This restraint affects profit margins and price points in the market.
Reliance on Contract Manufacturers
Reliance of many smart TV brands on contract manufacturers in Asia for mass production can hamper the market growth. While outsourcing manufacturing lowers initial capital investment needs, it also reduces control over costs and supply chain operations. TV brands have to deal with risks such as pricing pressures from OEMs, quality issues, delays in supplies, intellectual property risks, and currency fluctuations that impact input costs. These also need to continually invest in production planning, quality control, and vendor management to avoid supply chain disruptions. This dependence restrains some players from aggressively expanding operations and realizing maximum profits in the global market.
Growth in Demand from Emerging Markets
Growing emerging markets like India, Brazil, Eastern Europe, Africa, and the Middle East can offer growth opportunities. In these regions, internet and broadband penetration is rising fast along with disposable incomes, thus, driving more consumers to opt for smart TV upgrades over regular models. Demand percentage growth will likely be much higher from emerging markets compared to developed ones. Global players can tap into this opportunity through tailored offerings, financing schemes, and well-executed market entry strategies optimizing the online and offline sales infrastructure.
Integration of Artificial Intelligence capabilities
Integration of artificial intelligence (AI) capabilities into smart TV platforms can offer growth opportunities. AI features like computer vision, facial recognition, advanced search, and virtual assistants makes TV watching more personalized and interactive. The ability to provide customized recommendations, answer questions verbally, and enhance navigation through AI will deliver a more seamless experience. It could help TV brands strengthen loyalty among cord-cutters as well. Those able to quickly update their platforms with useful AI features to address evolving viewer needs will gain an edge in the highly competitive market.
Link - https://www.coherentmarketinsights.com/market-insight/smart-tv-market-4561
Key Developments:
- In October 2022, Samsung Electronics Co., Ltd., a prominent global technology firm, launched updated versions of The Frame TV in India. This QLED TV series is equipped with Samsung's Quantum Processor 4K, which enhances picture quality through advanced 4K AI upscaling capabilities.
- In September 2022, Sony Corporation, a prominent global technology and entertainment company, unveiled the Bravia XR Master Series A95K OLED TV in India. This latest model is driven by the advanced cognitive XR processor, which enhances the viewing experience by providing immersive visuals.
- In April 2022, Samsung Electronics Co., Ltd., a prominent global technology company, launched its Neo QLED 8K smart TV lineup, which features 65-inch and 85-inch models. To boost demand for these products, Samsung also rolled out promotional offers that enable consumers to purchase the TVs at discounted prices.
- In 2021, TCL, one of the top-selling consumer electronics brands globally, partnered with Roku to introduce a 4K HDR Roku TV. This partnership aimed to improve the viewing experience by combining Roku's streaming platform with TCL's cutting-edge television technology.
Key Player:
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.
