Connected TV Market

Market Perspective

The global Connected TV Market was valued at USD 13,233.7 million in 2022 and is projected to reach USD 32,517.2 million by 2030, growing at a CAGR of 12.18% from 2023 to 2030.

The connected TV industry is a dynamic and rapidly evolving sector that combines television technology with internet connectivity, offering users an enhanced and interactive viewing experience. Connected TVs allow users to access a wide range of streaming services and apps, giving them the ability to customize their entertainment options. With the ability to seamlessly switch between traditional TV programming and online content, viewers can enjoy a more personalized and convenient viewing experience. 

The connected TV market has witnessed substantial growth recently, with consumers increasingly embracing these devices for easier and more versatile access to digital content. This growth can be attributed to various factors. Firstly, the emergence of popular streaming platforms like Netflix and Hulu has made it incredibly convenient for consumers to directly access a wide range of content on their televisions. Moreover, the integration of voice assistants such as Amazon Alexa and Google Assistant into smart TVs has greatly enhanced the overall user experience, enabling users to effortlessly control their TVs and search for content using voice commands alone. Consequently, the connected TV market is anticipated to continue its upward trend in the foreseeable future.

Analyst’s Review on Connected TV Market

Streaming services have emerged as a major driver in the realm of connected TV. Platforms such as Netflix, Hulu, Amazon Prime Video, and others present users with an extensive collection of on-demand content, revolutionizing the traditional landscape of cable and satellite TV. These streaming services offer a diverse array of choices, encompassing popular TV shows, movies, and exclusive original content unique to their platforms. With the added convenience of flexible viewing options, enabling users to watch at their convenience and from any location, viewers are progressively abandoning conventional TV subscriptions in favor of these streaming platforms. Consequently, the connected TV industry continues to witness substantial growth, with an increasing number of households wholeheartedly embracing the streaming revolution.

Market Definition

Connected TV refers to a dynamic segment within the consumer electronics industry that encompasses television sets equipped with integrated internet connectivity and interactive capabilities. These smart TVs enable users to seamlessly access online content, applications, and streaming services directly through their television sets, eliminating the need for external devices.

The connected TV market is characterized by the convergence of traditional television broadcasting and digital media, offering consumers a more versatile and personalized viewing experience. With the rise of smart TVs, viewers can now not only watch their favorite shows and movies but also browse the internet, play games, and connect with social media platforms all from the comfort of their living rooms. This convergence has also led to the development of voice-controlled features and smart home integration, allowing users to control their entire entertainment system with just a few simple commands.

As the demand for smart TVs continues to grow, manufacturers are constantly improving the technology, ensuring that consumers have access to the latest features and advancements in the industry.

Market Dynamics

The increasing inclination toward on-demand content, such as streaming services and personalized programming, is playing a significant role in driving the growth of the connected TV market. Consumers are increasingly looking for the flexibility to access content whenever they want, which is why smart TVs have become so popular. Furthermore, technological advancements have made it easier for consumers to connect their TVs to the Internet, giving them access to a wide variety of streaming platforms and applications. This change in consumer behavior has resulted in a surge in the sales of connected TVs, allowing people to enjoy a more immersive and personalized entertainment experience in the comfort of their own homes. As a result, the connected TV market is expected to continue expanding rapidly in the coming years, fundamentally transforming the way we consume and engage with television content.

The absence of standardized protocols and formats can pose challenges for connected TVs. Different manufacturers may use different operating systems and app platforms, leading to compatibility issues and fragmentation. This lack of uniformity can make it difficult for developers to create apps and services that work seamlessly across all connected TVs. It also creates a burden for consumers who may need to navigate through multiple interfaces and ecosystems to access their desired content. Additionally, the absence of standardized protocols and formats can hinder the development of innovative features and functionalities, as manufacturers may be limited by the capabilities of their chosen operating system or app platform.

Segmentation Analysis

The global connected TV market is segmented based on screen type, end use, screen size, platform type, distribution channel, and geography.

By screen type, the flat segment is expected to register a significant revenue share of 57.87% in 2023. This can be attributed to the increasing demand for sleek and modern television designs among consumers. Additionally, the flat screen type offers advantages such as space-saving, better viewing angles, and improved picture quality. With advancements in technology and decreasing prices, more consumers are opting for flat-screen connected TVs, which are slated to facilitate the growth of the segment.

By screen size, the 30 inches to 50 inches segment is expected to register a significant revenue share of 45.97% in 2023. This growth can be attributed to the increasing demand for larger screens among consumers, as they seek a more immersive viewing experience. Additionally, advancements in display technology have made it possible for manufacturers to offer high-quality visuals in this size range at affordable prices. As a result, more households are opting for these mid-range screen sizes, further driving the revenue growth in this segment. 

By distribution channel, the online retailers segment is expected to grow at a CAGR of 14.37% through the forecast period. This growth can be attributed to the convenience and ease of purchasing connected TV online. With just a few clicks, consumers can compare prices, read reviews, and make their purchases without leaving their homes. Additionally, online retailers often offer a wider range of products and competitive prices, which makes them an attractive option for consumers looking to upgrade their homes with smart devices.

Geographical Analysis

Based on region, the global connected TV market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

APAC held the largest market share of 34.23% in 2023. This can be attributed to several factors. Firstly, the rapidly expanding middle class population in countries like China and India is driving the demand for connected TVs. These consumers are increasingly seeking convenience and entertainment options at their fingertips, which connected TVs provide. Secondly, the improving internet infrastructure in APAC countries is enabling seamless streaming and connectivity, further fueling the growth of the connected TV market. Lastly, the increasing popularity of streaming services and online content platforms in the region is also contributing to the market growth as more consumers are opting for personalized and on-demand content. Overall, the APAC region presents a promising market for connected TVs with its growing population, improving infrastructure, and increasing demand for digital entertainment.

On the other hand, over the forecast period, the Europe connected TV market is anticipated to grow at the fastest CAGR of 16.09% due to factors such as the rising adoption of smart homes and increasing disposable income. Additionally, the presence of major players in the electronics industry and the growing trend of cord-cutting are further fueling the demand for connected TVs in Europe. Moreover, government initiatives promoting digitalization and advancements in technology are expected to drive the connected TV market growth in this region. With these factors in play, Europe is poised to become a significant market for connected TVs in the coming years.

Competitive Landscape

The global connected TV market report will provide valuable insight with an emphasis on the fragmented nature of the business. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. The major players in the connected TV market are:

• Panasonic Corporation
• Samsung Electronics
• Sony Group Corporation
• Xiaomi Corporation
• Hisense Group
• Koninklijke Philips N.V.
• Haier Inc.
• Sansui
• LG Electronics Inc.
• TCL

Key Developments

• August 2023 (Product Launch) - LG Electronics (LG) introduced the groundbreaking LG SIGNATURE OLED M (model 97M3), the world's first wireless OLED TV. The initial release of the 97M3 took place in South Korea, and the company has ambitious plans for a global expansion, targeting key markets such as North America and Europe.

• August 2023 (Product Launch)- Xiaomi debuted its latest line of Smart TV X Pro series in the Indian market. This series consists of four different screen sizes, ranging from 43 inches to 65 inches. All models in this series are equipped with a high-resolution 4K LED panel, featuring a pixel resolution of 3840 by 2160, and they support Dolby Vision. These TVs offer an impressive 98% screen-to-body ratio and are powered by a quad-core chipset. Additionally, they come with the PatchWall+ interface and run on the Google TV operating system.

The global Connected TV Market is segmented as:

By Screen Type

• Curved
• Flat

By End Use

• Residential
• Commercial

By Screen Size

• Less than 30 inches
• 30 inches to 50 inches
• 50 inches to 70 inches
• Above 70 inches

By Platform Type

• Android
• Roku
• Others

By Distribution Channel

• Company Owned Websites
• Specialty Stores
• Online Retailers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America.