The smart TV market size stands at USD 244.4 billion in 2024 and is anticipated to surpass a valuation of USD 674 billion by 2034. The smart TV market expansion is estimated at a CAGR of 10.7% from 2024 to 2034.
Smart TV ownership is set to cross 1.1 billion households globally by 2026, representing 51% of all households. The availability of the internet across the globe is one of the primary factors behind the high demand for smart TVs. With the availability of cheaper and faster internet connections, more households can watch and download high-definition videos, surf the Internet, and run other applications on their television sets.
Such increased connectivity allows consumers to engage and optimize the use of the functions offered by smart televisions, hence boosting the market. Smart TVs are especially popular in areas where the internet connection is advancing quickly. Market trends in smart TVs suggest that consumers are interested in using the internet functionality for entertainment, education, and communication on their smart TVs.
Impact of streaming services on the smart TV market is at an all-time high. An estimated 70% of smart TV owners use their devices for streaming. SVOD (Subscription Video on Demand) platforms like Netflix, Amazon Prime Video, Disney+, and Hulu have changed the paradigm of media consumption. Around 76% of smart television owners use of Netflix for streaming various shows.
These services provide extensive collections of films, television programs, and special material and are less expensive than most cable or satellite television services. Many of these services can be accessed through Smart TVs and thus, do not require additional streaming devices to operate.
The fact that almost all streaming applications and services can be accessed from a smart television makes it an attractive option. With a growing amount of content being made available on streaming services, the demand for smart TVs also rises.
Technology has greatly advanced, making smart televisions more capable. Technological improvements such as 4K and 8k resolutions, OLED and QLED panels, improve picture quality and make these TVs a more valuable purchase. Also, advancements in processors and operating systems lead to enhanced performance and user interfaces. The industry is also witnessing a rise integration of embedded features.
These include voice control, AI recommendations, and compatibility with virtual assistant services like Alexa, Google Assistant, and Cortana. As technologies advance and get cheaper, the smart television industry is likely to benefit.
| Attributes | Description |
|---|---|
| Previous Valuation in 2023 | USD 219 billion |
| Current Valuation in 2024 | USD 244.4 billion |
| Forecasted Valuation in 2034 | USD 674 billion |
| Value CAGR (2024 to 2034) | 10.7% |
Industry Witnesses a Rise of Cloud Gaming Service Integration
Cloud gaming services such as Google Stadia, NVIDIA GeForce NOW, and Xbox Cloud Gaming are changing smart televisions into gaming powerhouses. This makes it possible for the users to engage in high-quality gaming experience without having to own a separate gaming console or high-end computer.
In this model, games are run straight from the servers and anyone with a device connected to the internet can play any of the available games. This is more attractive to casual gamers and people who want to engage in gaming without having to invest in peripherals. The flexibility in service delivery and cost reduction are the main factors behind the adoption of cloud gaming leading to increased smart TV sales for compatibility.
In October 2023, Netflix began testing its cloud gaming service in the United States after previously launching limited trials in the United Kingdom and Canada.
Demand for Eco-friendly Models is Higher than Ever
Currently, sustainability and energy efficiency have become significant growth factors influencing the smart TV market. Smart television manufacturers are leaving no stone unturned as they aim to remove superfluous energy consumption and use materials that are environmentally friendly. These TVs are designed to be energy efficient and can offer functions such as power-saving modes or auto-brightness control.
The concept of green products, which benefit the environment, is fascinating to customers who prefer to improve their environmental sustainability and become more environmentally friendly. Also, meeting energy standards in different regions allows manufacturers to sell products in various parts of the world without violating laws. As the concerns for environmental conservation rise, the emergence of more sustainable models can help the industry flourish.
In May 2024, Google announced the Android 14 for TV at its I/O developer conference. The updated OS aims to enhance performance, reduce power consumption, and introduce features like picture-in-picture support.
Higher Internet Penetration in Emerging Economies is Opportunistic for the Industry
Africa, Asia, and Latin America remain the backbone of venture capital investments. These regions are experiencing fast economic growth, resulting in a higher middle class with more disposable income. As internet access becomes more ubiquitous and cheaper, high-speed internet access extends to more households in these regions.
This creates grand chances for smart TV manufacturers as they can explore new customer segments. A dominant share can be achieved through affordable and good quality smart televisions that suit these markets' particular needs. Localizing content and interfaces for region-specific language and preference can also add value to the overall adaptation and consumption.
The demand for smart TVs rose at a 13.9% CAGR between 2019 and 2023. The industry generated revenues accounting USD 130 billion in 2019 and surpassed USD 219 billion by 2023. Since more companies are entering the smart television industry, the prices of smart televisions have declined and are now affordable for more people.
Consumer preferences for brands and models of Smart TVs with advanced connectivity options have led to innovations in the industry. New technologies and large volume manufacturing have made it possible for companies to produce smart televisions with better quality at cheaper prices. This has also made it possible for new startups to enter the industry due to the relatively low prices that many of the products now retail at.
With these aspects, the future of the industry seems bright, expanding at a 10.7% CAGR till 2034. Challenges for the smart TV industry include energy efficiency and compliance to regulatory requirements for data privacy and interoperability. It will be crucial for manufacturers to meet up with the changing regulations and certifications. These include Energy Star, EPEAT, HDMI among others to make them meet quality as well as safety and sustainability.
In addition, there are also certain rules regarding the privacy state like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These regulations will shape how these TVs process users’ data and guarantee their privacy and security.
This section gives insights into the future smart TV market forecast in top countries. Information on regions like North America, Europe, Asia Pacific, and others has been granulated, focusing on the top countries. South Korea is anticipated to be at the forefront with a 13.1% CAGR until 2034. Japan follows next, expanding at a 12.4% CAGR until 2034. The United Kingdom is also on the list, expanding at an 11.9% CAGR till 2034. This data suggests that the Asia Pacific region is likely to lead the industry in the coming decade.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| South Korea | 13.1% |
| Japan | 12.4% |
| United Kingdom | 11.9% |
The demand for smart TVs in South Korea will rise at a 13.1% CAGR until 2034. Samsung and LG electronics companies from South Korea are leading players in smart TV industry globally and locally. They have introduced great models developed to suit the Korean marketplace. Online video streaming services such as Naver TV and Kakao TV are currently trending hence smart TV manufacturers have partnered to ensure compatibility.
The nation has a rich gaming culture, so manufacturers integrate gaming-related features into TVs. Internet usage with a higher connection makes streaming and playing various games easier. Furthermore, South Korean consumers are more sensitive to design. It has been observed that most manufacturers aim to achieve a simple yet elegant look using rich material finishes to suit the consumers.
The sales of smart TVs in Japan will amplify at a 12.4% CAGR until 2034. Leading electronics firms hailing from Japan, including Sony, Panasonic, and Sharp have carved out a niche in the global smart TV industry. They are popular for designing attractive models that appeal to domestic consumers.
As Japan leads in full HD and 4K smart TV creation, meaning high-resolution TV sales skyrocket. Customers in Japan are very selective and demand quality and reliability in their electronics. As a result, manufacturers focus on the product’s ability to last and perform. Manufacturers also pay attention to cultural preferences by adding features such as anime streaming and built-in karaoke.
The market size of smart TV in the United Kingdom will expand at an 11.9% CAGR until 2034. In the United Kingdom, an increase in affordable smart TVs and streaming services has accelerated the demand for Connected TV (CTV) ads, which provide innovative and effective ways to target the audience. Energy efficiency is also important, as manufacturers invest in green technologies for their products to conform to standard requirements and consumer demands.
Freeview Play and Freesat are two digital platforms that offer free and subscription-free television with no additional costs for live and on-demand content. Also, British viewers prefer local content. Hence, smart television manufacturers and service providers integrate dedicated apps and channels with news, sports, and entertainment focused on the British audience.
This section takes a closer look at the smart TV market segmentation by operating system and screen shape. The research highlights that the Android TV is the leading operating system with a CAGR of 10.5% predicted until 2034. Under screen shape, the flat segment is predicted to expand at a 10.3% CAGR until 2034.
| Segment | Android TV (Operating System) |
|---|---|
| CAGR (2024 to 2034) | 10.5% |
Android TV offers a comprehensive entertainment experience with access to the Google Play Store's vast app library, including popular streaming services. Regular updates keep the platform competitive and secure. Seamless integration with Google services, such as Google Assistant and Google Home, enhances usability and provides advanced voice control and AI features.
Available on diverse devices from various brands, Android TV caters to different budgets, benefiting from cost-effective licensing. The platform's customizable interface allows brand differentiation, while its developer-friendly nature ensures continuous new content. Global reach and strong localization capabilities, along with Google's trusted brand image, enhance its appeal in the industry.
| Segment | Flat (Screen Shape) |
|---|---|
| CAGR (2024 to 2034) | 10.3% |
Technological advancements in Smart TV interfaces and user experiences have helped this segment thrive. Advancements in LED, OLED, and QLED technologies have enhanced flat screens' picture quality with superior brightness, contrast, and color accuracy, coupled with 4K and 8K resolution options. Their slim, lightweight designs facilitate easy handling and wall-mounting, appealing to aesthetic preferences.
Flat screens offer consistent picture quality from wide viewing angles, making them ideal for group viewing. Cost-effective production means affordable flat-screen smart TVs, with a wide range of options available in the marketplace. Flat screens also meet consumer demands for streaming and gaming, featuring high refresh rates and smart TV functionalities. These features amplify the appeal of flat screens in the market.
The competitive landscape of the smart TV industry consists of many intense competitors, the leaders being Samsung, LG, Sony, and other high-tech consistent companies ready to invest in improving their technology. They demonstrate varying degrees of differentiation based on the superior display technologies and enhanced features.
Companies such as TCL, Hisense, and Vizio have found market opportunities for smart TVs in the home entertainment sector through low price positioning and cost advantages. The partnerships with content providers prove to be beneficial for the improvement of their products.
Brand positioning and strategic partnerships remain popular concepts, with organizations focusing on marketing efforts and mergers for support. Impact of streaming services on the smart TV market leads to more partnerships. This competition keeps producers on their toes in developing new products, thus consumers have access to smart TVs that are more advanced and cheaper in the market.
Recent Developments
The industry is classified into Android TV, Tizen, WebOS, Roku, and Others.
The sector is segmented into 4K UHD TV, HD TV, Full HD TV, and 8K TV.
The industry is fragmented into Below 32 inches, 32 to 45 inches, 46 to 55 inches, 56 to 65 inches, and Above 65 inches.
The sector bifurcates into Flat and Curved.
The industry is classified into Online and Offline.
The sector is segregated into OLED, QLED, LED, and Others.
Analysis of the market has been conducted in the countries of North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa (MEA).
Industry is set to reach USD 244.4 billion by 2024.
The industry is expected to reach USD 674 billion by 2034.
Industry is set to report a CAGR of 10.7% from 2024 to 2034.
Flat screen leads the industry, with an expected CAGR of 10.3% till 2034.
The market in South Korea is expected to advance at a CAGR of 13.1% through 2034.
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