The global smart TV market accounted for USD 158.4 billion in 2018 and is expected to reach USD 293.5 billion globally by 2025, at a CAGR of 9.2% between 2019 and 2025.
A smart TV is a digital television connected to the internet, which is designed specifically for entertainment. Smart TVs can wirelessly connect to various devices, such as smartphones and smart speakers. Regular TVs can also be transformed into smart by using set-up boxes with advanced features and functions.
The global smart TV market is estimated to grow globally in the future due to the rising investments made in smart home technologies. Smart TVs are a vital part of smart homes. They include applications that are similar to those on smartphones and tablets. Smart TVs are wirelessly connected to other smart devices and can be operated using these devices as per user requirements. They also have in-built or embedded smart home control capabilities. In 2018, smart home technological investments reached about USD 2 billion as compared to USD 636.8 million in 2015. This increase will further leverage the demand for technologically advanced smart TVs in the years ahead.
The increasing adoption of “Artificial Intelligence” (AI) in smart TVs is fueling the smart TV market growth. AI-powered smart TVs can be accessed by voice commands and provide desired search results. In 2018, LG launched its new smart TVs in India that was AI-powered, which operate on the “ThinQ” AI platform. Furthermore, the major market players, such as Panasonic and Samsung, are focusing on using AI in their products.
The global smart TV market is segmented on the basis of resolution, screen size, technology, screen type, distribution channel, and end-use. HD, 4KHD, and 8KHD form the resolution segment of the global smart TV market. The 4KHD segment is expected to grow rapidly in the future, owing to the increasing adoption of 4KHD TVs for residential purposes. Below 32 inches, 32 to 40 inches, 40 to 47 inches, 48 to 55 inches, and above 55 inches from the screen size segment. The 32 to 40 inches segment is projected to hold a notable share of the smart TV market over the estimated timeframe. The technology segment includes OLED, QLED, LED, Plasma, and others. Curved and flat screens comprise the screen type segment. The distribution channel includes online, single brand stores, and multi-brand stores. Commercial and residential sectors form the end-use segment of the market.
North America is projected to grow rapidly in the global smart TV market over the estimated time period. The U.S. is considered as a key contributor in the upsurge of the market in this region, owing to rising investments made in smart home technology. Smart TVs play a major role in the “Internet of Things” (IoT) for smart homes. In 2018, more than 45 million smart home devices were installed across several homes in the U.S., which was an increase of about 21.5% from 2017. Thus, the regional demand for smart TVs will grow in the future.
The European smart TV market will expand in the future, owing to the burgeoning product demand in the commercial sector. Additionally, rising tourism activities have led to the humungous demand of smart technologies in the hospitality sector. Top hotels in Europe, such as Marriott, Westin, and Le Meridien, are adopting IoT to deliver a better and seamless experience to their guests. In 2017, Marriott announced its collaboration with Samsung to personalize their guest experience. These solutions have enabled hotels to reduce their energy consumption and increase their financial values. With government initiatives to promote tourism and high adoption rate of smart technologies in the hospitality sector, the European smart TV market is anticipated to flourish over the coming years.
Asia Pacific is likely to hold a considerable share of the global smart TV market over the estimated timeframe. China, Japan, and South Korea are considered to be the most lucrative countries in this region, owing to the presence of numerous giant market players, such as Samsung, LG, Hitachi, Sony, Toshiba, etc. China is considered as a major supplier of smart TVs. In 2017, China shipped about 33 million units of 4K TVs as compared to 15.1 million units in 2015. This number is estimated to reach 44 million units by 2020.
The Middle Eastern and African region is projected to make notable contributions toward the smart TV market over the estimated time span. Saudi Arabia and UAE are considered to be the major countries in this regional market. The residential sector is foreseen to create a huge demand for smart TVs, owing to the high disposable income of people. Watching TV on the internet is one of the most popular trends in various Middle Eastern countries. Latin America is anticipated to grow considerably in this market due to the increasing interactivity of TV services among customers in Argentina and Brazil.―Globe Newswire