Connected TV Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Connected TV Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Connected TV Market size is expected to grow from USD 8.20 billion in 2023 to USD 15.24 billion by 2028, at a CAGR of 13.20% during the forecast period (2023-2028).

Connected smart TVs are accountable for transforming the television industry by offering a broad spectrum of innovative features through internet-connected services unavailable with traditional CRT televisions. These smart TVs have Wi-Fi capability or an Ethernet port that allows users to stay connected to the internet.

Key Highlights

• Consumer viewing habits are shifting due to streaming media devices like Apple TV, Amazon Fire TV, and Google Chromecast. Several manufacturers collaborate with OTT (over-the-top) content and device suppliers to deliver built-in functionality without needing a set-top box. For instance, TCL Corporation and Roku Inc. collaborated to launch a 4K HDR Roku TV.
• In addition, makers of linked TVs are fighting for the newest advancements in user interface, content aggregation, and application development. For instance, smart TVs include an operating system that can run widgets and apps streaming videos and music. Smart TVs provide a wide range of sophisticated computing capabilities and connections, all set with unified internet capabilities. Consumers can currently search, talk, explore, share, update, and download material on smart TVs, propelling the demand for linked TVs.
• Moreover, fast global digitization has substituted old TV screens for digitized and smart alternatives, propelling market development. Furthermore, growing consumer per capita earnings and convenient product accessibility in countries like the United States have boosted demand for smart connected TVs.
• 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.
• Due to their resemblance to a computer or a smartphone, linked TVs might crash and freeze. Customers' growing worries about data breaches and unauthorized access to the camera or microphone brought on by internet connectivity may restrain the market expansion for connected TVs during the assessment period.
• The COVID-19 pandemic has drastically affected the lifestyles and routines of all consumers. Shelter-in-place orders and work-at-home mandates have driven in-home video consumption to unprecedented levels. The growing number of smartphone users in emerging economies has acted as a significant catalyst for smart connected TV as users look to continue their streaming content consumption on larger screens when at home.

Connected TV Market Trends

Smart TV Accounts for the Largest Market Share

• Compared to traditional televisions, smart TVs are upgraded with cutting-edge capabilities and applications. Furthermore, Apple and Roku are creating operating systems specifically for smart TVs. For instance, WebOS by LG Electronics and Tizen, developed by Samsung Electronics Co. Ltd., allows customers to download programs from their stores and access online streaming applications.
• As viewership of online material has grown dramatically in recent years due to high-speed broadband access has increased. Furthermore, the expanding electronics sector has started merging different technical advancements, including voice command and computational intelligence, with growing demand for intelligent gadgets, including smart connected TVs.
• Furthermore, viewers can now easily access popular OTT services like Netflix, Amazon Prime, and Hotstar, thanks to various smart TV brands employing Android as their operating system. Major Android applications like Facebook, Twitter, and Youtube are also accessible through the Android OS.
• Additionally, with Bluetooth remotes, viewers may access voice commands on these TVs. For instance, the One-Flick remote from Sony has an integrated microphone that enables voice searches for anything. Android includes built-in games, music, and movies and its application store.
• Besides, the easy availability of multiple streaming media devices, such as Apple TV, Amazon Fire TV, and Google Chrome cast, is estimated to change people's experiences and view patterns. It is set to further result in the rapid shift of manufacturers towards partnerships and collaborations with content providers and OTT device producers for developing inbuilt features in their TV sets.

Asia Pacific Accounts For the Largest Market Share

• The increasing net disposable income of consumers in Asia-Pacific has been a significant factor in the demand for smart TV. In addition, the rising popularity of OTT platforms, such as Amazon Prime Video, Netflix, HOOQ, and others, across this region further drives the market growth. For instance, in July last year, Panasonic announced the launch of its new range of made-in-India Android televisions, JX and JS series, with 11 unique models across 4K and Smart TV portfolios such as JX850, JX750, JX650, and JS650, among others, with a screen size ranging from 32-65 inches, targeted at enhancing the viewing experience for its customers. The new Android TV range supports the powerful OTT platforms available in India.
• Furthermore, growing internet penetration contributes to an increase in smart TV sales, fueling market growth. Moreover, according to IBEF, the market size of the OTT video streaming market of India is predicted to reach USD 5 billion by 2023. India is projected to become one of the top 10 international OTT markets, with USD 823 million by the end of the current year.
• Households in India are on the verge of a transition, with a shift in preference from traditional TV sets to smart TV sets. The rising income levels, increased awareness, adoption of new technology, and increased internet penetration are attributed to changing the lifestyle of the middle-income population. Furthermore, government initiatives, particularly in tier-II and tier-III cities, are some of the critical factors expected to boost the expansion of the Indian smart TV market during the forecast period.
• Moreover, the shifting customer preferences toward online content due to the increasing proliferation of high-speed internet in most areas of India provides an impetus to market growth. Significant investment flows by video streaming media companies, like Netflix and Amazon Prime, and Hotstarincreased Pay-TVsubscribers. Further, Daiwa recently announced the launch of a unique 4K UHD smart TV powered by webOS TV. The 50-inch smartTVis powered by webOS TV, with ThinQAI voice assistance and Magic Remote.

Connected TV Industry Overview

The Connected TV market includes several players. These large firms, holding a significant market share, concentrate on growing their international consumer base. Due to the recent surge in consumer interest, this industry is seen as a viable investment prospect. The businesses invest in emerging technology to develop substantial expertise that will provide them with a long-term competitive advantage.

• November 2022 - Samsung India announced the launch of Frame TVs in India. The latest smart TVs come with customizable bezels, matte displays, and art modes.
• July 2022 - LG Electronics has launched a range of AI ThinQtelevisions with built-in Amazon Alexa, Google Assistant, and Apple AirPlay2 in India.

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• The market estimate (ME) sheet in Excel format
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