The Connected TV market is expected to register a CAGR of 15.52% during the forecast period (2021 - 2026). The ongoing COVID-19 outbreak has adversely affected the display industry, with manufacturing operations temporarily suspended across significant manufacturing hubs, leading to a substantial slowdown in production. Major manufacturers, including Samsung, LG, and Xiaomi, have suspended their manufacturing operations in China, India, South Korea, and European countries.
- A connected TV refers to a TV that helps users to watch videos with the help of internet connectivity. These are designed to provide a more immersive experience for viewers by delivering interactive features such as social networking, web browsing, video-on-demand, and video streaming, along with regular television content.
- Additionally, the preliminaries of the fourth industry generation, connected TV manufacturers are competing for the latest innovations in the user interface, content aggregation, and application development, such as smart TVs come with an operating system that can run apps and widgets, which can stream videos and music. Set with unified internet capabilities, smart TVs offer numerous advanced computing abilities and connectivity. Smart TVs' current capabilities allow consumers to search, chat, browse, share, update, and download content, driving the market for connected TVs.
- The 4K UHD segment is expected to see significant growth over the forecast period. The drop in the prices of these TVs is drawing customers and triggering demand across emerging economies. The increase can be associated with innovative features, such as high resolution and high picture quality, with Dolby Digital sound that provide theater experiences on larger screen sizes. The adoption of innovative technologies, such as Quantum dot LEDs (QLEDs), across the Ultra-high-definition (UHD) in 4K TVs, is expected to fuel the segment demand period. Televisions belonging to this range have high penetration rates when compared to the others. 4K TVs also pack in screen technology, such as high dynamic range (HDR) and wide color gamut (WCG).
- Further, the growing demand for online streaming has opened opportunities for service providers to venture into the Over the Top (OTT) space and distribute content via the internet. (OTT) content players, such as Netflix, Amazon, Hotstar, Sony Liv, and several other streaming services, are increasing their spending on marketing and local content to expand customer base by luring them away from DTH and TV Cable services. Many of these platforms partner with broadband providers to get the existing data users onboard by offering free bundled subscriptions. These continued efforts, coupled with changing consumer behavior, are driving the increased demand for the connected TV market.
- Additionally, the increasing significance of smart TV in the IoT ecosystem owing to features like ambient intelligence, automatic user assistance, and the rising disposable income of the people is further boosting the market growth.
Key Market Trends
Smart TV Accounts for the Largest Market Share
- Smart TVs are enhanced with advanced features and applications compared to other televisions. In addition to this, Apple and Roku are developing their own operating systems for the smart TV. For instance, Tizen developed by Samsung Electronics Co. Ltd. and WebOS by LG Electronics enables users to download applications from their store along with helping them to access online streaming applications.
- Further, using Android as an operating system by various smart TV brands has made it easy for viewers to access major OTT platforms such as Netflix, Amazon Prime, and Hotstar. The Android OS also provides access to major Android applications like Facebook, Twitter, and Youtube.
- Moreover, these TVs support voice commands, which the viewers can access with the help of BlueTooth remotes. For instance, Sony's One-Flick remote has an inbuilt mic that allows users to search anything via voice commands. Along with the applications, Android also offers in-built games, music, and movies.
- In April 2020, Sharp announced two new 8K smart TVs for the Japanese market, Sharp Aquos 8T-C70CX1 and Sharp Aquos 8T-C60CX1. They feature 70-inch and 60-inch 8K panels, respectively. The company will be only manufacturing 2,500 units, and they will go on sale in April. The TVs come with a Sharp Medalist Z1 image processing engine and Rich Color Technology Pro to offer vibrant and realistic colors and right viewing angles. Both the TVs come with two HDMI 2.1 ports for 8K 60 Hz and 4K 120 Hz video inputs. The TVs also support dedicated 8K sports mode and can to upscale 4K content to 8K. They are even certified for HDR10, Dolby Vision, and HLG. Further, these TVs also come with 70W (2.2.2) speakers powered by Eilex PRISM.
- Additionally, in March 2020, LG Electronics (LG) announced the sale of its 2020 TV lineup, led by 14 OLED models, which includes the GX Gallery series, real 8K ZX models, and 4K Ultra HD TVs. LG is taking the viewing and gaming experience into new territories to be followed by Europe and other markets.
Asia Pacific Accounts For the Largest Market Share
- Asia-Pacific is the dominating market for smart TVs. It is expected to continue its dominance over the forecast period, owing to increasing demand for smart TVs by end-users and the emerging economies of India, China, and Japan. The increasing net disposable income of consumers has been a significant factor for continued demand in the region. The growth is also attributed to the rising popularity of OTT platforms, such as Amazon Prime Video, Netflix, HOOQ, and others, across this region.
- The presence of the Chinese players has been critical in the competitive pricing of products in these markets, many of which have entered into partnerships with e-commerce platforms to offer their products. Third-party service providers have helped in assuring that consumers opt for these products, allowing the market indirectly.
- In Asia-pacific, India is the most attractive market for vendors. In July 2020, Samsung launched the smart QLED 8K TV line in India. It has an Active Voice Amplifier technology that recognizes exterior noises and increases the volume of voices in content accordingly if surrounding conditions become too loud. In June 2020, TCL launched its latest smart QLED TV series in the Indian market. It features a pop-up camera, Dolby Vision, and Dolby Atmos support. The new innovative launches of smart TVs has boosted the growth of the Connected TV market in this region.
- Moreover, the shifting consumer preferences toward online content due to the increasing proliferation of high-speed internet in most parts of India provides an impetus to the market growth. Substantial investment flows by video streaming media companies, like Netflix, Amazon Prime, and Hotstar increased Pay-Tv subscribers.
- Further, in July 2021, Daiwa has announced the launch of a new 4K UHD smart TV powered by webOS TV. The 50-inch smartTV is powered by webOS TV, with ThinQ AI voice assistance and Magic Remote.
The Connected TV market consists of several players. With a prominent share in the market, these significant players focus on expanding their customers globally. This industry is being viewed as a lucrative investment opportunity due to the enormous consumer interest gained recently. The companies invest in future technologies to gain substantial expertise, which would enable them to achieve a sustainable competitive advantage. Some of the recent developments in the market are:
- March 2021 - tvScientific announced the launch of its Connected TV (CTV) buying, measurement, and attribution platform, built for businesses of all sizes that value performance media. The tvScientific platform was designed for performance marketers, media agencies, and companies to utilize the rapidly growing and engaged CTV audience. It helps to combine the powerful viewing experience of TV advertising with the capabilities of SmartTVs. Additionally, tvScientific can help businesses to buy and measure advertising performance.
- August 2020 - KERV Interactive, the multi-award-winning interactive video company revolutionizing digital advertising performance with its patented technology, has launched a Connected TV product that can dynamically insert QR codes seamlessly into video assets. The Connected TV product enables brands and content creators to showcase specific products, offer relevant information, and provide contextual shopping opportunities.
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Table of Contents
1.2 Scope of the Study
4.2 Industry Stakeholder Analysis (Smart TV Manufacturers, Middleware providers, Streaming Media player vendors, Suppliers/Distributors, End-users)
4.3 Connected TV - Technology Landscape (Smart TVs, Streaming Players, Gaming Consoles (for streaming)) - includes a market estimates and geographical view of the gaming consoles
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5.1.1 Growing internet penetration and anticipated shift from conventional TVs
5.1.2 Industry collaborations and favorable market conditions (shift from internet TV to smart TV)
5.2 Market Challenges (Cost issues and competition from alternative mediums)
5.3 Impact of COVID-19 on the Market
6.1.1 Smart TV
126.96.36.199 Smart TV Market Overview and Estimates (in million units, 2019-2026)
188.8.131.52 Smart TV Market breakdown by key OS (Android, Tizen, WebOS, Roku, Firefox, etc.)
184.108.40.206 Key shifts and trends in Smart TV Resolution - 4K, Ultra, 8K, etc.
6.1.2 Streaming Media Player - Market Overview and Estimates (in million units, 2019-2026)
6.2 By Geography
6.2.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
6.2.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7.1.1 Samsung Corporation
7.1.2 LG Electronics
7.1.5 Sony Corporation
7.1.7 Vizio Inc.
7.1.8 Haier Group
7.1.9 Sharp Electronics
7.1.11 Xiaomi Corporation
7.1.12 Amazon (streaming media player - Fire TV)
7.1.13 Apple (streaming media player - Apple TV)
7.1.14 Roku (streaming media player - Roku)
7.1.15 Google (Chromecast)
A selection of companies mentioned in this report includes:
- Samsung Corporation
- LG Electronics
- Sony Corporation
- Vizio Inc.
- Haier Group
- Sharp Electronics
- Xiaomi Corporation
- Amazon (streaming media player - Fire TV)
- Apple (streaming media player - Apple TV)
- Roku (streaming media player - Roku)
- Google (Chromecast)