The global smart TV market is poised to experience a 5.5 percent year-over-year decline in shipments for the year 2023, IDC said.
This downturn is attributed to various factors, including high inflation rates and extended product refresh cycles affecting consumer purchasing behavior, according to the latest report from the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker.
Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers, highlighted that the growth within the smart TV sector predominantly lies in emerging markets due to these market conditions.
Conversely, in mature markets, there’s a noticeable shift occurring as televisions evolve from mere media screens to pivotal components within interconnected smart home ecosystems. This transformation has spurred intense competition among major players like Amazon, Roku, and others, leading to competitive pricing strategies and the integration of advanced features aligning with broader smart home functionalities.
Adam Wright, IDC’s research manager for Smart Home and Office Devices, expressed concerns about weak consumer demand, particularly in regions like North America, which has significantly impacted shipment figures in 2023.
This trend is anticipated to persist well into 2024 as economic challenges persist, prompting vendors to rely on premium TV sales to mitigate the market downturn. However, uncertainties loom regarding the long-term sustainability of this strategy, IDC said.
Looking ahead, IDC report forecasts a potential market recovery in 2024 with a projected stabilization in growth, followed by a gradual uptick in subsequent years. The outlook indicates a compound annual growth rate (CAGR) of 3.3 percent for the period spanning from 2023 to 2027, suggesting a slow yet optimistic trajectory for the global smart TV market in the foreseeable future.
The market share in terms of OS will be Android (38.1 percent), Tizen (21.3 percent), Roku (12.5 percent), FireOS (3.4 percent), and others (24.6 percent) in 2023, according to IDC.