Connected TV device market to double to 2BN by 2017
Editor | 29-01-2014
Over a billion TV-centric connected devices are now in homes across the world and this number is set to double by 2017, according to research from Futuresource Consulting.
The analyst sees a world where uptake of smart TV, IP-enabled set-top boxes, game consoles, Blu-ray players and low cost digital media adapters is surging, as smart features and connectivity become key innovations in a CE industry where TV sales account for 70% of traditional AV consumer electronics market value.
Futuresource calculates that just less than a third of people who owned a smart TV actually connected it to the Internet and that this has now risen to 68% on average today, with the US leading at a 79% connection rate. It added that 44% of the 225 million TVs shipped worldwide in 2013 offered smart features and consumers now increasingly expect these enhancements on mid-range as well as high-end models. By 2017, Futuresource expects over four-fifths of all TV sets sold worldwide will be enabled for online connectivity and smart features.
Such a connected world will present a number of opportunities, not least in apps, which senior market analyst Jack Wetherill believes will offer manufacturers a way to differentiate with unique features and content.
"As fixed and mobile broadband both continue to evolve in speed and capacity, alternative service-level infrastructures are being created to reach the huge base of IP devices with on-demand and simulcast content at quality close to, or matching, that of broadcast," said Wetherill. "Both TV-centric and mobile multimedia IP devices will drive growth in online content distribution, but it is clear that consumers like the personal nature of second screen, and tablets will elevate multi-platform consumption to a whole new level."
Game consoles were found to be the current leading TV-centric media player solution, with both Microsoft and Sony building entertainment content and service partnerships to add value for their networked users. With the recent release of Xbox One and PlayStation 4, games consoles are high volume – 31 million units worldwide in 2013 – and moving into a new caution that this overall market's dominance will contract from 2015.
"In parallel with all this, ownership of personal multimedia devices has soared from 2.8 billion in 2013, on track to reach 4.4 billion by 2017 as tablets and smartphones become ubiquitous and supplant PCs as alternative viewing platforms," added Wetherill.