Smart TV Technology Enhancements as Viewers Embrace Larger, Smarter Displays
In the aftermath of a tumultuous period, the international consumer TV market is make a comeback, as suggested by Futuresource Consulting's recent consumer TV display market outlook report. This report predicts a minuscule 0.9% increase in global TV shipments for 2024, which amounts to 218 million units. This marks the start of a sluggish but consistent growth up until 2029, with an annual volume forecast of 230 million units.
"Significant sporting events in 2024, such as the UEFA Euros and the Paris Olympics, have significantly boosted demand," says Carl Hibbert, research director at Futuresource Consulting. "However, it's not just sports stirring the pot. A rekindling of consumer replacement cycles, alongside advancements in screen technology and smart TV functionalities, are spearheading a new era of evolution in TVs."
Top-tier Features Driving Future Profits
Though the volume growth is noteworthy, the retail market value dipped by 0.4% in 2024 due to aggressive promotional activities and cutthroat pricing, squeezing margins. Nevertheless, Futuresource anticipates a gradual recovery starting from 2025, as consumers come to appreciate OLED and larger-sized displays.
"LCD continues to dominate, accounting for nearly 90% of the retail market value," says Hibbert. "However, OLED shipments soared by 23% in 2024 and are on track to surge another 24% in 2025. The falling Average Selling Price (ASP) of OLED and increased competition from Chinese manufacturers are pushing the format into affordable price ranges. Going forward, OLED and MicroLED will gradually hack away at LCD's dominance, with a particular focus on the premium and ultra-large screen segments. This is a gradual realignment instead of a disruptive change."
Smart TV OS Platforms: A Hidden Revenue Stream
As hardware profit margins dwindle, manufacturers are on the hunt for new sources of revenue. To that end, they are exploring the operating system space. As smart TV penetration exceeds 80% of total shipments in 2024, Futuresource expects ad-based revenue from OS platforms and services to grow in importance for maintaining profitability.
With Android/Google TV, Tizen, and webOS dominating the scene, TVs have ceased to be mere display devices. They are transforming into content hubs, e-commerce portals, and data platforms. Consequently, platform strategies have moved up the strategic agenda for top TV brands.
Asia Pacific Dominates, North America Levels Off
Asia Pacific emerged as the speediest growing region, with 87.3 million TVs shipped in 2024 and projected growth continuing until 2029. India serves as a standout star, expected to achieve a 4% CAGR over the same period. In contrast, North America is revealing signs of saturation, with volume growth anticipated to flatten out from 2026 onwards.
Futuresource also observes strong demand for larger screens (70+ inches) in emerging markets, as brands capitalize on affordability improvements and evolving consumer preferences.
Trade Policies Pose a Threat
While the market outlook is generally optimistic, it remains vulnerable to geopolitical risks. Futuresource's data modeling reveals that a reinstatement of US tariffs on Chinese-made TVs could slash global shipments by more than 6% in 2026 under a high-tariff scenario.
Manufacturers are already taking measures to mitigate the impact, such as relocating production to countries like Mexico and Vietnam. While tariffs provide obstacles, they can also foster adaptability, with smart brands developing flexible supply chains and diversified sourcing strategies.
A Market on the Move
As the TV market shifts into a new phase of innovation, this Futuresource report explores key trends driving its evolution. These include:
- High-tech TVs with AI-powered personalized user experiences and voice control gaining popularity
- 4K UHD's continued dominance, while 8K remains a niche innovation platform
- Smart TV ecosystems functioning as primary growth drivers and revenue sources
- The need for tailored go-to-market strategies and price flexibility based on regional differences
"We're witnessing a market in motion," says Hibbert. "The next five years will be defined by strategic adaptability, and the TV brands that invest in experience, ecosystem, and execution will unlock the full potential of this resurging market."
To delve deeper into Futuresource Consulting's Consumer TV Display Global Market Outlook report or to make a purchase, reach out to [email protected] or visit here.
"As the TV market moves into a new phase of innovation, there is an increased emphasis on high-tech features such as AI-powered personalized user experiences and voice control, which are gaining popularity among consumers."
"Moreover, smart TV ecosystems are not only functioning as primary growth drivers but also emerging as crucial revenue sources for manufacturers, as the adoption of smart-home-devices and gadgets integrated with technology continues to grow."
