Connected TV device ownership – including smart TVs, web-connected set-top boxes and other TV-connectable devices – is set to double by 2017, reaching 1.8 billion over the next four years, according to new research.
Strategy Analytics’ Global Connected Devices Forecast 2008-2017 predicts that the global number of connected TV Devices will grow from an average of just 0.5 per household in 2013 to 1.0 per household by 2017.
This will mark a five-year compound average growth rate of 20% from 2012 to 2017 for these devices, buoyed by the rise of over-the-top (OTT) services like Netflix, said the research firm.
“Consumers are increasingly drawn to OTT services in the home and on the go, so it’s not surprising to see shipments of connected devices rising year after year. Furthermore, vendors are looking to build in IP connectivity into devices that have traditionally been un-connected to garner higher retail sales prices but also take advantage of the expanded availability of and interest in OTT content. Accordingly, we see market retail value growth of connected CE devices doubling the pace of growth in the overall CE device market,” said
Strategy Analytics’ connected home devices service director, David Watkins.
Strategy Analytics analyst Eric Smith said that the firm predicts “sustained growth” in connected TVs, set-top boxes, DVRs, Blu-ray players and digital media adapters such as Apple TV, Google Chromecast and, in the UK, Sky Now TV boxes.
“Although AV devices have become increasingly overlooked by consumers in favour of infotainment devices such as smartphones and tablets, the integration of IP connectivity is breathing new life into the sector and creating new opportunities for vendors” said Smith.
He added that while games console ownership is expected to shrink from current highs “these powerful devices will continue to act as important multimedia hubs in the living room.”
Strategy Analytics predicts that globally, the average home will own 2.6 portable connected devices by 2017, up from 1.7 in 2013.