NEW YORK – Digital voice assistants coupled with an increase in video streaming will help spur demand for smart TVs worldwide, says new data from research firm IHS Markit.
The global unit-share of smart TVs rose from 45% of total TV shipments in 2015 to 64% percent in 2017, and is expected to reach 70% of all TV shipments in 2018. Global TV shipments are recovering this year, due to increased price erosion from declining LCD TV panel prices, with shipments rising 3.5% to 223 million units.
“Global growth is expected in all regions this year, and positive annual unit growth is forecast to continue during the buildup toward the 2020 Summer Olympics in Tokyo”, said IHS Markit research and analysis executive director, Paul Gagnon, in the report’s news release. “The rise of streaming video availability worldwide, especially for special events like the World Cup and Olympics, along with continued growth for global streaming video services, have encouraged strong growth in smart TV sales in recent years.”
Consumers increasingly consider streaming to be a basic TV function of comparable importance to off-air broadcast reception, continues the data. Streaming remains the only way to access ultra-high-definition (UHD) content for most consumers, with smart TV reinforcing the value of 4K resolution screens, which are now being sold at mass-market prices. At the same time, the effect of government-imposed mandatory interactivity for TV services in Brazil and Argentina has boosted Latin America into the top three global regions for smart TV adoption.
Android is currently the most popular smart TV operating system platform, including both the full Android TV implementation and modified versions used by many Chinese TV brands. IHS Markit said that it expects Android will continue to gain share through 2022, as a common third-party platform with native support for Google Home.
Roku TV and Fire TV, currently only available in North America, will also gain share, as brands seek common platforms from increased margin pressure. Over the next five years, Roku TV is forcast to expand beyond North America. Fire TV may also become available in other regions, provided the U.S. partnership between Amazon and Best Buy is successful.
