Boom continues for connected TV
| 12 August 2015
The number of TV sets connected to the Internet will reach 876 million by 2020, more than double the number expected by the end of 2015 says a report from Digital TV Research.
The Connected TV Forecasts report states that the proportion of TV sets connected to the Internet will soar 29.9% over the five-year period, with 55% of South Korean homes having such a device in their homes. This compares with the expected 11.4% in India.
In absolute terms, the US is projected to supply 184 million connected sets by 2020, up from 112 million in 2014, with China hot on its heels with 144 million. As an indication of the rise of connected TV in china, this figure was just 21 million in 2014. Such growth will propel the Asia Pacific to become connected TV's largest region in 2017.
"The connected TV sector has shifted considerably since our last edition a year ago," said Digital TV Research principal analyst Simon Murray. "This includes fundamentals such as a revision downwards of TV set growth due mainly to greater competition from mobile devices. Furthermore, the gulf between rich and poor nations is not going to be breached as rapidly as we previously thought. Therefore, connected TV set forecasts for most developing countries, especially China and India, are a lot lower. Retail OTT devices such as Chromecast and Apple TV have made more of a splash than previously expected."
Looking at the contribution of the latter, Digital TV Research predicts that that global total of connected TV sets via streaming/retail set top boxes such as Chromecast and Apple TV will reach 207 million in 2020, with 42 million originating in the US and 39 million in China. The expected 58 million of such devices by the end of 2015 would represent a rise from fewer than four million in 2010 and 37 million a year earlier.
Smart TV sets are set to account for 36% of the 2020 total connected sets, with 320 million (of which 56 million will be in the US and 64 million in China). Even though there were only 31 million connected smart TV sets by the end of 2010, the analyst believes that this figure will quintuple to 150 million by 2015. As a proportion of total TV sets, this percentage will climb from 1.3% in 2010 to 5.6% in 2015 and onto 10.9% by 2020. By 2020, this proportion will be higher than 10% of TV sets in 34 countries.