US connected TV devices market set for 7% annual growth | Media Analysis | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
At the end of 2017, 210 million devices were installed in US consumer homes actively delivering internet connectivity to the TV screen, and this number is set to leap to 275 million by the end of 2021 according to research from the NPD Group.
apple content
While the analyst says in its TV-Connected Device Forecast study that smart TVs and streaming media players will continue to drive installed internet-connected TV device growth, making up 49% and 29% of the total growth respectively through 2021, it also anticipates the number of new households purchasing devices will begin to slow late in the forecast period as the market reaches saturation.

Gaming consoles have been to date the leading installed and internet-connected TV device in the US, but NPD now predicts that by the end of 2018 they will be surpassed by the number of streaming media players and smart TVs installed and connected to the internet. According to the forecast, smart TVs will overtake this leading position, driven by sales of smart TVs 40 inches and below coming equipped with operating systems, continued growth of internet connect rates, growing usage of streaming video services, and rising 4K/Ultra HD adoption due to the fact that virtually all 4KTVs now come with apps installed.

The TV Ownership Trends Report also notes that consumers replace TVs every 6.9 years on average, and given that smart TV sales picked up during 2013, NPD expects replacements will accelerate some time between 2019 and 2020. While this trend will also drive smart TV sales, NPD cautions that it will also lead to a slowdown in the number of additional connected TV households, a trend that will be seen in the streaming media player market as well.

“Device purchases are shifting from first time connected TV households and those connecting TVs in secondary rooms, to consumer’s entering into a device and smart TV upgrade cycle,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “From a content distributor perspective, this means investing in resources to ensure today’s apps are updated for later model year devices and TVs.”