The Indian TV market is seeing a major preference for UHD sets, with this category increasing its share in the pie.
The television industry is in constant motion in a quest to unveil the next must have features to keep consumers interested in the very competitive TV market. Over the years technology trends have come and gone, while others are currently dying a slow death and on the way out.
The consumer had over the years transitioned from SD to HD, from 352 lines to 720 lines of resolution. 2017 saw the viewers opting increasingly for ultra high definition (UHD), which offers more frames per second, higher pixel resolution, greater color depth, and high dynamic range (HDR). The 2017 market constituted 8 percent UHD, 40 percent full HD, and 52 percent HD. And 2018 is expected to be the year when UHD shall really take off, and the UHD share seems poised to increase to 20 percent. The 720p HD sets, may lose share to 1080p full HD ones. While full HD, delivering 8-bit color depth will lose out to 10-bit color depth, UHD. There is a strong preference for larger screens too.
The Indian FPD market in 2017 is estimated at 12 million sets. Samsung, LG, and Sony dominate with a combined market share of 73 percent. In 2017, Videocon group, including Sansui and Philips brands suffered a major setback. Other aggressive brands continue to be Panasonic, Intex, Micromax, Onida, and Haier. Brands, which could be seen jostling for space at the retail, counters included VU, Daiwa, Wybor, Akai, Truvison, Mitashi, Daenyx, Skyworth, and T-Series. The unorganized and grey market has a steady one million sets market share.
The Indian TV market represents the biggest category in the Indian consumer electronics market with overall penetration of 60 percent in the country. There has been a significant rise in the number of TV households in India, from 119 million in 2011 to 183 million in 2017 and this is expected to increase to 200 million households in 2024. The market is expected to see continued growth, contributed by replacement demand, increasing preference for a second TV in households, upgradation to a newer technology/advanced model, and more purchases in the rural regions.
Numerous foreign and local brands are entering the market and this enhances the competitive spirit by ushering wide range of offerings at varied price points. Global giants are facing competition from home grown Indian companies.
Innovative retail marketing initiatives, such as the exchange programs, bundled offers, attractive discounts, easy financing and zero down payment schemes, freebies and extended warranty services are fuelling consumer spending. The rapid proliferation of e-commerce/m-commerce and e-tail has contributed to a higher penetration in urban and semiurban centers. Online retail has gradually made its niche in the market, generally with exclusive brands not offered in brick-and-mortar stores.
The global TV market is expected to grow at a CAGR of 9.62 percent in the next 5 years. The global TV market is segmented into two segments – LCD TVs and OLED TVs. The LCD TVs segment dominates the market, owing to its extensive demand from China because of the ultra-low manufacturing cost and growing number of government subsidies. The global shipments of branded LCD TV sets for 2017 are estimated to be 210 million units. For 2018, the shipments will grow by 3.9 percent to 218 million sets. UHD TVs are expected to dominate the market for the next 4 years. Some of the major factors responsible for the increasing revenue shares in the market’s segment is the growing demand for technologically advanced products plus its additional features such as better picture quality with four times higher resolution of HD TV, a wide field of view, and extended color range.
The TV market is highly competitive and diversified due to the presence of a large number of regional and international vendors across the globe. These vendors are increasingly competing against each other based on factors such as features, technologies, displays, and prices. Furthermore, these vendors are also increasingly focusing on investing heavily in planning, designing, developing, acquiring new players, and expanding their existing facilities. However, the changing consumer preferences for screen sizes and technology lead to the imbalance in demand and supply of display panels and driver integrated circuits (ICs), which poses a challenge to manufacturers. The undercapacity or overcapacity by electronics device manufacturers leads to fluctuations in demand for semiconductor components, which leads to increased inventory thus affecting an overall revenue of the market.
By region, APAC will continue to dominate the market for the next 4 years. One of the major factors responsible for the market’s growth in the region is the growing demand from end-users in China as APAC is the manufacturing hub for UHD TVs. Chinese TV manufacturers have been on the rise globally for several years now.
Advancements in Display Technology
After years of television innovations that either had little to offer the average consumer or introduced more problems than they solved, 2017 saw manufacturers get back to focusing on making great looking sets. There is a whole host of new technologies that needed new hardware to take advantage of it. From 4K, to HDR, 10-bit color depth and wide color gamut, there is a dizzying array of different specifications that TV manufacturers have been adapting to certain extents over the course of the year. 2017 was also the year when almost every manufacturer embraced OLED as their panel type of choice for their high-end sets.
The Road Ahead
In 2018, attention has turned to the most profitable market segments, including larger screen sizes and advanced technologies like OLED, QDs, 4K, and HDR, each of which helps boost average selling prices and profits. More brands are expected to enter the OLED TV market in 2018 with a growing field rate. Increasing penetration of ultra-high-speed Internet, particularly in developed regions including metropolitan cities is favorably impacting the 4K UHD TVs market growth. There will be several changes to file formats and delivery methods in 2018, due to the nature of 4K UHD deliverables and the size of the respective data sets. HDR content will also become more ubiquitous. Penetration of smart TVs will achieve relative parity with streaming media players as platforms delivering apps to TVs. The spending on next-generation large-screen televisions will increase. The year will also bring further exploration into other aspects of the technology, as 22.2 and object-based audio systems become more viable.
Based on market research conducted by TV Veopar Journal in February 2018.