Out with the old traditional TVs, in with the new – smart TVs. In the dawn of the Internet of Things (IoT), these modern televisions have become prevalent in households. According to Hub Entertainment Research, smart TVs are now found in seven out of ten homes in the United States. Homes with children under 18 and adults up to 35 years old are most likely to have a smart TV. The booming popularity of streaming services like Netflix, Amazon Prime Video, HOOQ, Disney+ and more, has been a catalyst for the market growth, as well as the COVID-19 pandemic, which has confined people in their homes, further increasing the demand. Smart TVs allow access to a plethora of online content without the need of a TV antenna or cable or satellite subscriptions since everything is done via the internet. Aside from streaming, several smart TVs support web browsing, gaming, screen sharing and even file sharing to mobile devices. Modern Intelligence notes the smart TV market to be a lucrative investment opportunity for buyers because of its high consumer interest.
This industry holds a lot of promise in the next seven years. Global market demand for smart TVs in 2021 is 313.1 million units, and is expected by Grand View Research to reach 1.18 billion units by 2028, with a CAGR of 20.7 percent. Consumer interest in QLED and OLED displays, decreasing prices of 4K TVs and rise in popularity of 8K TVs are all contributing factors. Plenty of manufacturers are also entering the industry, especially those from India and China, who target low to middle-level income classes. Despite the pandemic momentarily hindering the production process and negatively affecting the supply chain and cross-border trade, companies are maximizing their efforts to reinstate their production process.
When sourcing for smart TVs, buyers may opt to consider following classifications. Resolution-wise, available variants are 4K UHD TVs, HDTVs, Full HD TVs and 8K TVs. In terms of screen type, there are flat and curved options. Panel types include LCD, LED, OLED and QLED TVs.
4K TVs, which have a resolution of 3840×2160 pixels or 2160p, had the largest market share at 40 percent in 2020. These devices have become the most popular choice for consumers who want crisp and detailed picture quality. More OTT (over-the-top) content providers like Netflix, Amazon and Sky are producing 4K content. Although not all videos are filmed in 4K, Which notes that 4K TVs are better at playing HD and Full HD content, which have a resolution of up to 1,920×1,080 pixels, better than HD TVs. Viewers will be able to see every detail on a face and play their favorite video games with 4K-enabled consoles.
8K TVs currently have the fastest growth at 19 percent from 2021 to 2028. 8K TVs have approximately 33 million pixels, which is double the 8 million pixels offered by a 4K HDTV. To stand out from the competition, manufacturers are adding more advanced features like the Active Voice Amplifier by Samsung, which recognizes exterior noises and increases the volume of voices in content accordingly if surrounding conditions become too loud. TCL’s QLED TV, on the other hand, which can upscale non-8K content to 8K, features pop-up camera.
Asia-Pacific has had the largest smart TV market share in 2020 at 38 percent and will continue to dominate until 2028, thanks to the rising adoption of smart televisions in countries like India. China leads the regional market with several new entrants in the industry. In terms of having the highest growth until 2028, the Middle East leads with a 12 percent CAGR. This can be attributed to the availability and consumer interest and in online content and high-speed internet connections.