The global smart TV market was valued at US$ 143.6 Billion in 2020 and is expected to surpass US$ 436.2 Billion by 2028, registering a CAGR of 15.3% during the forecast period (2021-2028), published by Coherent Market Insights.
The increasing usage of high-speed internet, improving living standards, and rising disposable income of the developed and developing countries such as Japan and India are the major factors driving the market growth during the forecast period. For instance, according to the World Bank report, the population of India reached US$ 1,341.0 million in March 2020, from 1,327.0 million in March 2019. In addition to this, according to GSM Association, Asia Pacific had 1.7 billion internet users in 2018 and the number is expected to reach 2.9 billion in 2025. Major players based in countries such as Japan and South Korea are focusing on developing 5G technologies. The growing adoption of over-the-top (OTT) streaming is some other factor fueling the smart TV market growth across the globe. For instance, according to Coherent Market Insight analysis, the top (OTT) market is expected to reach US$ 295.2 billion by 2028 from US$ 85.2 billion in 2020 with a CAGR of 13.5% during the forecast period (2021-2028). Furthermore, the emergence of the UHD 4K and OLED technologies, which has helped in getting a better viewing experience to the consumers, is a significant factor surging the growth of the global smart TV market growth. However, the high repairing cost of smart TVs is the major factor hindering market growth during the forecast period.
Global Smart TV Market – Impact of Coronavirus (Covid-19) Pandemic
Globally, most of the countries are affected by the COVID-19 pandemic and have announced lockdown. Key manufacturers such as LG Electronics Inc. and Samsung, also suspended their manufacturing operations in countries across the Asia Pacific and Europe, drastically impacting the production of new TVs. Due to the pandemic, most of the companies are offering work from home option and after office hour’s people can save most of their time. As consumers are forced to stay at home, that have increased the demand for popular over-the-top (OTT) service providers such as Netflix, Amazon Prime, and others. The increasing demand for a paid subscriptions is driving the demand for smart TVs during the pandemic. For instance, according to the International Federation of the Phonographic Industry (IFPI), there were 443 million users of paid subscription accounts at the end of 2020. Thus, in turn, increases the demand for global smart TV in the market.
Key Trends and Analysis of the Global Smart TV Market:
- North America held a dominant position in the global smart TV market in 2020 and is expected to retain its dominance throughout the forecast period. In North America region, the U.S. holds the leading market share of over 78.6% in the smart TV market in 2020. As customers changed their preference to UHD TVs over traditional TVs, owing to their attractive design and superior image quality and this will increase the demand for smart TVs in the market. The growing demand for these smart TV has created lucrative opportunities for content providers to provide HD content and recording facilities which supports 4K visual technologies.
- Asia Pacific region is expected to show significant growth over the forecast period. The growing popularity of Over the Top (OTT), Video on Demand (VOD) platforms such as Netflix, Amazon Prime Video, and HOOQ have increased the demand of smart TVs in the region. The introduction of new display technologies such as QLED and XLED has significantly reduced the demand for LCD TVs. Furthermore, a reduction in the prices of 4K UHD resolution technology has led to a change in consumer screen size preferences. Attractive prices and features have gradually attracted consumers to move to larger display screens and increased the demand for smart TVs in the region.
- Among distribution channels, the online segment held a dominant position in the market in 2020 and is expected to retain its dominance during the forecast period. The growing adoption of e-commerce platforms such as Amazon.com Inc. and Flipkart has increased the demand of smart TVs in the market. For instance, in June 2020, Samsung, a South Korea-based multinational electronics company launched new smart TVs through various platforms such as Flipkart and Amazon with various offers and discounts in order to attract consumers in India.
- Major players operating in the global smart TV market include Samsung, Panasonic Corporation, LG Electronics, Inc., Apple, Inc., Sony Corporation, Koninklijke Philips N.V., Videocon Industries Limited, Haier Electronics Group Co, Ltd., TCL Corporation, Hisense Group, Sansui Electric Co., Ltd., Micromax Informatics, Sharp Corporation, VIZIO, Inc., Toshiba Corporation, Hitachi Ltd., Insignia Systems Inc., and Westinghouse Electric Corporation