2023/12/26 11:33:14

Televisions (Global Market)

TV platforms (global market)

TV platforms (global market)

2023

5.5% increase in annual sales of SmartTVs

At the end of 2023, the supply of smart TVs on a global scale decreased by about 5.5% compared to 2022. Macroeconomic factors, high inflation, reduced purchasing power and an increased period of equipment renewal have a negative impact on the industry. This is stated in the IDC study, the results of which were published on December 22, 2023.

Weak consumer demand in regions such as North America has had a significant negative impact on the overall market, a trend that is likely to continue for much of 2024. Many suppliers expect economic headwinds to continue to hold the market back. For the sake of maintaining profits, companies are betting on selling premium TVs, says Adam Wright, smart home market research manager.

In 2023, the share of smart TV under management Android is estimated at 38.1%, but sales of such panels on an annualized basis decreased by 4.6%. In second place in popularity are TVs based on 21.3% of the Tizen market and a 5.2% decrease in supplies compared to 2022. Next come Smart TV with Roku OS and FireOS operating systems, which in 2023 accounted for 12.5% and 3.4% of the global market, respectively. Such products on an annualized basis showed sales growth of 4% and 13.2%. All other platforms for smart TVs together occupied 24.6%, showing a decrease in sales by 9.8% compared to 2022.

In the future, IDC analysts believe, the global Smart TV industry will begin to gradually recover. In the period from 2023 to 2027, the CAGR (average annual growth rate in complex percentages) is expected at 3.3%. And in 2027, experts say, sales will rise by 5% compared to 2026.^[1]

TV sales in the world are declining. Leaders

At the end of 2023, TV sales on a global scale are estimated at approximately 197 million units. This is 2.1% less compared to the result for 2022. Such data are given in the TrendForce study, the results of which were published on November 28, 2023.

Analysts explain the fall in demand for TV panels for several reasons. TV deliveries increased during the peak of the COVID-19 pandemic, when consumers in self-isolation needed additional devices for home entertainment. However, after the removal of severe restrictions, people began to return to their usual way of life, and TV sales decreased. In addition, macroeconomic factors, high inflation and a decrease in purchasing power in general have a negative impact on the industry.

The leading player in the global TV market in 2023 is Samsung Electronics with 36.3 million devices shipped: this is 9.8% less than in the previous year. At the same time, the share of the South Korean manufacturer fell by 1.2% - to 18.5%. It is said that due to high inflation To Europe USA Samsung in and faced a drop in sales of middle and high class products. At the same time, deliveries of QD OLED TVs increased by 153% on an annualized basis - to 890 thousand units. As a result, Samsung's share in the OLED TV segment rose to 16.6%.

The Chinese brands Hisense and TCL, which took second and third places, respectively, sold 27 million and 26.2 million TVs in 2023: this is 12.4% and 16.3% more compared to sales in 2022. Next comes another South Korean manufacturer - LG Electronics: the company sold approximately 22.91 million TVs during 2023, which is 7.4% less than a year earlier. It is noted that LG faced a fall in demand for OLED panels by almost 30%.^[2]

2022: Global Smart TV market rolls back to 5-year low

At the end of 2022, deliveries of Smart TVs on a global scale amounted to approximately 137.1 million units, which is the lowest figure in five years. Such data are given in a study by S&P Global Market Intelligence, the results of which were released on April 20, 2023.

The data presented takes into account the supply of only those TVs that are used for home entertainment. Commercial panels used, for example, in the hospitality industry, in the retail sector, as well as in various public places and offices are not taken into consideration. Revenue estimates are based only on quantitative sales and do not include revenue generated from the use of smart TVs through advertising, platform fees, applications, etc.

Smart TV market rolls back to 5-year low

It is reported that smart TV sales grew amid the COVID-19 pandemic. While in self-isolation, users around the world actively purchased smart panels to pass the time for digital entertainment and films. However, in 2022, demand declined due to the difficult macroeconomic situation, high inflation, reduced purchasing power and saturation of mature markets. As a result, sales dropped to pre-pandemic indicators.

According to S&P Global Market Intelligence, by the end of 2022, global shipments of smart TVs decreased by about 4.3% year-on-year. Major manufacturers such as Samsung, LG and Sony have faced a drop in sales. Each of these suppliers increased the share of premium products in the total volume of shipments to compensate for the loss of income due to lower demand. Average sale prices (ASP) for smart TV in the top segment exceeded $700. At the same time, companies such as TCL and Xiaomi went in the opposite direction: they gave priority to the development of families of affordable products - primarily in emerging markets. In such regions, the ASP for smart TVs did not exceed $300.

Smart TV market rolls back to 5-year low

Shipments of smart TV panels running the Android TV operating system decreased by 0.1% in 2022 compared to the previous year. The leading players in this segment are Xiaomi and TCL, which accounted for more than half of the total number of devices shipped. Shipments of smart TVs to the Amazon Fire TV platform rose about 86% in 2022, helped by good sales in North America.

In general, at the end of 2022, a decrease in TV shipments was recorded in most segments in terms of the OS used. For example, TV shipments with Roku OS collapsed by 29% on an annualized basis, mainly due to the fact that TCL decided to increase the share of Android TVs in total shipments to North America. That may have forced Roku to accelerate plans for its own smart TVs, which will begin sales in 2023.

Smart TV market rolls back to 5-year low

It is estimated that during 2022, the global supply of smart TVs based on the base Tizen amounted to approximately 36.1 million units. Operating system Android TV was installed on 31.4 million implemented panels. Devices under control WebOS accounted for 18.2 million units, TVs with Roku - 8.8 million units. Another 6.9 million units were smart TVs based on Fire TV, about 6.3 million units - based on PatchWall (AOSP).

Consumer spending remains constrained by persistent inflationary pressures in much of the world. In addition, rapid cooling of demand in mature markets is a key factor that led to an annual decrease in the supply of smart TVs, according to a report by S&P Global Market Intelligence.^[3]

2021: Market volume falls to 213.54 million TVs

In 2021, manufacturers around the world shipped about 213.54 million TVs, which is 1.93 million less than a year earlier. The market size has been minimal since 2010, analysts at Omdia, whose data was published in February 2022, calculated.

According to estimates by the research company TrendForce, 210 million TVs were delivered globally in 2021, which is 3.3% less than a year ago in 217 million units.

Among the factors that contributed to the negative dynamics, experts noted a slowdown in the spread of COVID-19 in Europe and the United States in the second half of the year. Against this background, countries began to return to normal life, and the incentive measures associated with the pandemic ceased to be applied, which led to a decrease in demand. In addition, rising prices for materials and rising prices for transportation led to an increase in the total cost of devices and forced TV brands to raise retail prices.

While TV makers pinned their hopes on traditional end-of-year sales, they fell short overall as high prices dampened demand. As a result, all this led to a reduction in the TV market last year, the study notes.

The global TV market fell to its lowest since 2010 - to 213.54 million TVs

According to a study by Omdia, Samsung remained the largest TV manufacturer in 2021, whose share was 19.8% in physical terms and 29.5% in money at the end of 2021. Another South Korean manufacturer, LG Electronics, sold a total of 27.3 million TVs in 2021, which corresponds to 12.8% of the total market. In monetary terms, the company's market share reached 18.5%.

LG is leading in the segment - TV retailers with a OLED share of 62% at the end of 2021. During this period, the corporation sold 6.5 million such devices with an average cost of 1861 dollars (LCD models have a three-fold lower figure - 507.7 dollar).

As noted by SamMobile, Samsung has held the lead in TV shipments since 2006 after the release of the Bordeaux line. In 2009, the South Korean corporation introduced the first LED devices, and in 2011, models with Smart TV support. In 2017, the first Samsung quantum dot TVs were released QLED TV , and a year later the company presented its first QLED TV with resolution support. 8K

In 2021, Samsung shipped 9.43 million QLED TV devices, and the total supply of such equipment since 2017 exceeded 26 million copies.

Global TV deliveries 2019-2022

Thanks to Samsung's popularity in the premium TV market starting at $2,500, QLED accounted for 44.5% of this segment last year. In the category of the largest models with diagonals from 80 inches, the company's share is estimated at 44.9%, Omdia analysts calculated.

TrendForce noted the rise in the segment of TVs with screens on organic LEDs. Their deliveries in 2021 increased by 70% and reached 6.7 million units. Experts attribute the growth to a reduction in the price gap between OLED TV and traditional TVs with liquid crystal screens, which occurred against the background of the rise in price of LCD panels.

Experts also pointed to the growth in sales of Mini LED TVs (the technology involves the use of reduced LEDs, so that you can more accurately highlight the desired areas of the screen and get a more contrasting image). In 2021, they sold 2.1 million units, and in 2022, as expected, the volume of this segment will more than double and reach 4.5 million units. This will be facilitated by the expansion of the range from leading manufacturers, including Samsung, Sony, LG and TCL.^[4]

2020:30% rise in TV prices

The COVID-19 coronavirus pandemic, as well as the restrictions it caused, have led to a large-scale shortage of semiconductors. For this reason, as the research company NPD reported in mid-May 20201, many components for PCs, laptops, tablets, and TVs have significantly risen in price.

Prices for Smart TV models rose about 30% in the final months of 2021 compared to the corresponding period in 2020, NPD analysts said.

Some manufacturers, such as the Taiwanese company Asus, have already noted a potential price increase. Asus said during its March 2021 quarterly profit and loss report that a shortage of components would mean "further price increases," likely affecting consumers.

TVs rise 30% over the year due to a shortage of semiconductors

In mid-May 2021, Sony announced that the PlayStation 5 would remain in short supply until 2022 due to the crisis. In February, Sony CFO Hiroki Totoki said it was difficult for them to increase production of the PS5 due to a shortage of semiconductors and other components.

Among the main reasons for the shortage of semiconductors, experts name the ongoing COVID-19 pandemic, which caused a boom in demand for consumer electronics, but the economic crisis forced some industries to incorrectly assess the scale of the decline in demand. In addition, large-scale supply chain failures were recorded, including the March fire at a factory in Japan that produced a number of semiconductor components, including display integrated circuits.

Asian Reuters chipmakers are in a hurry to expand their production capacity to meet global demand, according to reports, but it will take months to fill the supply gap. On the other hand, some chipmakers are struggling with issues such as a lack of investment.^[5]

2019: Global TV market dips slightly

The volume of the global TV market in 2019 amounted to 218 million units, a slight decrease compared to 2018. Such data are provided by the analytical company Statista.

According to Omdia experts, deliveries of liquid crystal TVs on a global scale increased by 0.5%, while in 2018 the rise was measured by 2.5%. The growth rate of the OLED device segment also slowed down: if in 2018 there was a 58 percent rise here, then a year later the figure was 19%.

The volume of the global TV market has slightly decreased over the year

Sales of TVs with 8K resolution support in 2019 did not reach 120 thousand units and were below analysts' expectations. Most of this equipment was released by Samsung. Researchers attribute the weak performance of this segment to delayed plans by Chinese manufacturers for 8K models, as well as a sharp drop in prices for 4K panels, which contributed to a new wave of demand for Ultra HD TVs.

TV deliveries to the North American market in 2019 decreased by 3% compared to the previous year and amounted to 42.5 million units. About 70% of this volume came from 4K models. As for the size, in North America, televisions with screens ranging in size from 50 to 59 inches are the most popular: in 2019, shipments of such equipment rose by 11.7% to 14.8 million units. Deliveries of devices with displays from 30 to 39 inches amounted to 7.4 million units (a decrease of 34%).

2019 ended on an encouraging note, and all signs pointed to the possibility of a slight increase in TV deliveries in 2020. However, hopes for growth have completely evaporated. Previous concerns about possible interruptions in the supply of components have now been overshadowed by growing anxiety due to the upcoming collapse in demand amid the coronavirus, said Paul Gray, Omdia's director of consumer device research^[6]^[7]

2018

4K TV sales reach 121.4 million - Report Ocean

The volume of the global market for ultra-high resolution (4K) TVs in 2018 reached 121.4 million units, according to the analytical company Report Ocean.

Experts did not lead the dynamics in relation to 2017 and only noted that TV sales increased significantly. They are expected to increase 13.18% annually and reach nearly 289 million units by 2025.

The volume of the global market for ultra-high resolution (4K) TVs in 2018 reached 121.4 million units

Experts named the following companies as the largest manufacturers of 4K TVs:

The 4K segment is growing faster than the entire TV market, becoming widespread by expanding the range in the middle price segment and reducing the average price.

Models with displays from 52 to 65 inches diagonally are in greatest demand in the segment. However, as the researchers predict, demand for equipment with screens from 65 inches will skyrocket thanks to lower prices and rising household incomes in some regions.

According to experts, the 4K TV market is growing due to several factors. Among them are the evolution of the consumer electronics market as a whole, achievements in the field of TV graphics engines, price competition, as well as the popularity of ultra-high definition technology and its advantages.

The study points out that the new GPUs allow the use of advanced image formats and significantly improve picture quality, so they are widely used in the production and distribution of 4K content. Customers are used to using such content, which should spur market growth in subsequent years, analysts say.^[8]

LCD TV sales up 2.9% to 221m - IHS Markit

The volume of global liquid crystal TVs in 2018 amounted to 218.8 million units, analysts at IHS Markit calculated, whose data was published on April 8, 2019.

For the first time in history, Chinese manufacturers have released more TVs in a year compared to South Korean competitors - 31.2% versus 30.6% in total shipments for 2018.

The Chinese became the leaders of the TV market for the first time

If we take into account all types of TVs (not only LCD models), then in 2018 manufacturers shipped a total of 221 million devices, which is 2.9% more than a year earlier. The rise was largely due to the holding of the World Cup in Russia.

According to the results of 2018, China became the largest market for TVs - 30.1 million devices were received there. Next is North America with 24.7 million units of shipped equipment.

The study notes that 99 million 4K TVs were released in 2018. In Western Europe, the share of such devices was 63%, which was not in any other region in the world.

2018 saw the emergence of the 8K resolution segment of TVs. Global deliveries of such devices reached 18,600 units, which was facilitated by the launch of an 8K TV channel in Japan.

The share of TVs with Smart TV support is growing: such models accounted for more than three quarters of the market. In North America, Smart TV penetration reached 85%, up 10 percentage points from 2017.

The average TV size is still growing by at least 1 inch a year, says Paul Gray, director of research at IHS Markit. - Western Europe and Latin America, in particular, exceeded this figure in 2018. Against the backdrop of falling LCD panel prices, consumers are clearly taking more care of increasing size than saving. Even in Japan, where consumers have resisted buying big TVs, the average screen size has increased every year.^[9]

Sales of Smart TV devices reach 157 million - Strategy Analytics

In 2018, 157 million Smart TVs were sold worldwide, representing 67% of the total market. Such data on March 25, 2019 led to the research company Strategy Analytics.

The report notes that almost every fifth smart TV sold works on operating system Tizen from, and in Samsung the case of - Android TV one in ten. You can find out more about the distribution of OS shares from the diagram below.

The most popular operating systems for TVs with Smart TV support, data Strategy Analytics

According to Strategy Analytics Director David Watkins, TVs bring manufacturers a small margin, but for many technology companies these devices remain a strategic priority for several reasons: a large audience of TV users, the ability to sell advertising in the Smart TV environment and receive new sources of revenue through services.

In this regard, control over the OS market for Smart TV is crucial, since within this software level, companies can extract valuable user data that generates revenue from sales of targeted advertising. It is for this reason that Google, Roku and Amazon are fighting to convince TV manufacturers to build their television software platforms into devices instead of spending a lot of money and time building and supporting their own operating systems, Watkins said.

Roku TV accounted for only 4% of global sales of smart TVs in 2018, however, in North America, every fourth device sold ran on this platform.

Android OS (AOSP) firmware is gaining popularity, which is being developed by many Chinese TV manufacturers. Such software is profitable, since it costs free, but it does not have built-in Google services, including the Google Play Store.^[10]

2017

Smart TV's market share reached 64%. Most popular OS

According to the research company IHS Markit, the global TV market reached 223 million units in 2017, an increase of 3.5% compared to the previous year. About 64% of the supplies of this equipment came from models with support for Smart TV - a set of programs that turn a TV into a multimedia center. With Smart TV, users can:

connect to the Internet and use the web browser on the TV screen;
install games and applications;
watch Internet TV and video content from services such as YouTube;
go to social networks;
make audio and video calls.

A study published by IHS Markit on July 17, 2018 states that at this point the most popular operating system for Smart TV is Android, which accounts for about 40% of the corresponding devices.

Experts give the second place to the Tizen platform (23%), which is being developed by Samsung. The top three closes webOS (13%) - a project supported by LG Electronics. Other most common operating systems for smart TVs can be seen in the diagram below.

File:1smart TV OS share chart IHSM 1807.png

The most popular OS for Smart TV, data from IHS Markit

According to IHS Markit forecasts, the share of Smart TV devices in the global TV market will continue to grow and reach 70% in 2018. The rise is largely due to the fact that watching video through Internet services becomes the basic function for TVs and is as important as traditional TV broadcasting, analysts say.

Operators are slow enough to launch ultra-high definition (4K) feeds, so for most users wanting to watch such videos, streaming web services remain the only option to access 4K content. In this regard, it is important for them that their TVs belong to the Smart TV category.

In 2018, a special surge in demand for Smart TV is observed in Latin America, where interactive TV services have become mandatory, so this region has become one of the three largest in terms of smart TV adoption.^[11]

Sales growth of 4.1% to 211 million units

In 2017, the volume of the global market for LCD TVs in natural terms will decrease by 4.1% and will amount to about 211 million devices. This assessment was made in mid-December 2017 by specialists from WitsView, the research division of the analytical company TrendForce.

At the same time, experts expect a significant increase in the supply of TVs with organic LED (OLED) screens: in 2017, about 1.5 million OLED TVs will enter the global market, which is 72% more than in 2016. LG Electronics and Sony will make a significant contribution to the projected rise, experts say.

Global LCD TV Supply Forecast by Brand for 2017-2018

Characterizing the market situation from the point of view of vendors, analysts noted that Samsung Electronics will maintain its leading position and deliver about 43 million LCD TVs in 2017. The closest competitor LG Electronics will come to the finish line with a result of 28.3 million TV devices, and the Chinese TCL will close the top three, whose contribution to the global volume of shipments of LCD TV is estimated at 14.34 million units.

In addition, the top 5 will include another TV brand from the Middle Kingdom - Hisense, as well as Japanese Sony. In 2017, these vendors will ship 12.8 and 12.25 million TVs, respectively.

WitsView experts believe that the decline in the TV industry will be short-lived, and will be replaced by growth in 2018. Analysts' forecast provides that the supply of LCD TVs will increase by 3.9% and the market volume will approach 219 million units.

Among the trends that will contribute to the recovery of the market, WitsView analyst Jeff Yang (Jeff Yang) named a tangible decline in prices for TV panels, the upcoming XXIII Winter Olympic Games in South Korean Pyeongchang and the World Cup, which will be held in Russia.

Among the leading TV brands, positive dynamics is expected for everyone except Samsung. Due to the emphasis on high-end QLED TVs, its deliveries will decrease by 1%, to 42.5 million units. At the same time, LG, TCL, Hisense and Sony will show growth of 0.7%, 6.7%, 9.4% and 0.4%, respectively.^[12]