LCD TVs, STBs drive connected device boom
Editor | 14-02-2014
The global market for connected devices is set to surpass six billion units by the end of 2014, driven by connected TVs and set-top boxes entering the electronics ecosystem, says a report by IHS Technology.
The analyst predicts that worldwide production of connected equipment will amount to 6.18 billion units by the end of 2014, up 6% from 5.82 billion in 2013. This, says IHS, will be the largest increase for the market in four years, surpassed only by the 10% rise in production in 2010.
Game consoles are forecast to enjoy the largest growth among all segments, up 45% in 2104 after a major product refresh late in 2013 following a seven-year drought of new models. The main products here are the PlayStation 4 from Sony and the Xbox One from Microsoft.
Media tablets and smartphones are also set to thrive this year, with production up 25% for the former and 7% for the latter, with Apple and Samsung ensuring average selling prices are elevated as a whole. IHS also says that two other major equipment segments for the connected devices market that will enjoy greater production in 2014 are LCD TVs and set-top boxes, up 7% and 5% respectively. LCD TV growth will likely be driven by the emerging markets, while cable digitisation will spur set-top box shipments.
“The improved growth this year of the connected devices industry marks the return of higher production as manufacturers deliver all sorts of connectivity equipment to users,” commented Jagdish Rebello, senior director for information technology at IHS. “Given the voracious appetite of consumers for social media and their yen for always-on connectivity, it’s little surprise that makers will continue to turn out such devices to keep buyers engaged.”