Leading video analyst DisplaySearch is predicting that the connected TV revolution will accelerate, growing by 30% to 2014 leading to a total of 123 million units.
According to its Q1’11 Quarterly TV Design and Features Report, DisplaySearch forecasts DisplaySearch forecasts that the connected TV market will become fragmented and increase in complexity. It expects basic connected sets carrying enhanced broadcast services such as Hbb.TV or basic video on demand—the analyst cites specifically Netflix, Maxdome, Acetrax and VUDU—will appeal to consumers who expect TV to remain a passive experience.
Yet there will also likely be a sub-segment for whom connected TVs will be used to run configurable apps, sophisticated search and navigation engines, and advanced user interfaces.
The analyst foresees growth across the world and not just in the established markets of North America and Western Europe where connected TV will enjoy a second wave following on the heels of digital broadcasting.
By contrast, the research forecasts Eastern Europe’s connected TV market to grow from 2.5 million connected TVs shipped in 2010 to over 10 million by 2014 and that a third of flat panel TVs sold in China in 2013 will have internet capability. Chinese connected TV development will likely occur in advance of DTT adoption and DisplaySearch predicts a surge in China driven by decoder chip costs reaching a tipping point, as the cost for such capability is now low.
“The connected TV market is developing beyond mature regions like Western Europe and Japan,” commented Paul Gray, Director of TV Electronics. “With some emerging countries having excellent broadband infrastructure, the adoption of connected TV capabilities is a natural next step in TV feature innovation. Smart TVs are adding to what is already a fast-moving and fiercely competitive battleground, with competition appearing in all directions, including mobile PC devices such as tablets and increasingly powerful set top boxes with services accessible anytime, anywhere.”