Connected TV Adoption to Double in Coming Years
As the year comes to a close, sales estimates are now being finalized and predictions for the next few years are being made.
Market research firm Strategy Analytics today issued what seems to be a safe bet for the tech industry, predicting that the install base for connected-TV devices will double by the year 2017. The firm believes that an average of one connected-TV device will have been sold for every household worldwide by that year – again, double the 0.5 connected-TV devices per household that have currently been adopted.
These connected devices include smart TVs, streaming set-top boxes. DVR devices, DVD/Blu-ray players, and video game consoles. Such devices were among the most sought-after products during this year’s Black Friday shopping weekend, particularly TVs and streaming video players.
“Consumers are increasingly drawn to over-the-top (OTT) services in the home and on the go, so it’s not surprising to see shipments of connected devices rising year after year,” said David Watkins, service director for Connected Home Devices at Strategy Analytics. “Furthermore, vendors are looking to build in IP connectivity into devices that have traditionally been un-connected to garner higher retail sales prices but also take advantage of the expanded availability of and interest in OTT content. Accordingly, we see market retail value growth of connected CE devices doubling the pace of growth in the overall CE device market.”
Strategy Analytics also laid out its predictions for the mobile market, predicting that the adoption of connected mobile devices will also reach a global average of 1.8 per household by 2017. This will be led, of course, by smartphone adoption in emerging markets. Other mobile devices that have what the firm calls a “single function” (handheld video game consoles, mp3 players, e-readers) are predicted to lose market share as smartphones continue to cut into their sales.
“Although AV devices have become increasingly overlooked by consumers in favor of infotainment devices such as Smartphones and Tablets, the integration of IP connectivity is breathing new life into the sector and creating new opportunities for vendors” said Eric Smith, analyst with Strategy Analytics. “We see sustained growth in connected models of Flat Panel TVs, Set-top Boxes, DVRs, Digital Media Adapters (i.e. Apple TV, Google Chromecast, Sky NOW TV), and Blu-ray players. And although ownership of Games Consoles is expected to shrink from current highs as gaming becomes more casual and increasingly mobile, these powerful devices will continue to act as important multimedia hubs in the living room.”