Report: Connected TVs to Reach 123M Units by 201425 Apr, 2011 By: Erik Gruenwedel
Spurred by growth in Latin America, China and Eastern Europe, global sales of connected televisions are projected to reach 123 million units by 2014, according to a new report.
Santa Clara, Calif.-based research firm DisplaySearch said 20% of all TVs shipped in 2010 included Web access capabilities. The data is noteworthy, considering leading domestic CE retailer Best Buy Co. has reported tepid consumer interest toward connected TVs (and 3DTV) during the past two quarters.
Indeed, more than twice as many connected TVs were sold in Latin America (nearly 14 million) and Japan (38 million) in 2010 than in North America (about 7 million). China is expected to see a 33% growth in sales of connected TVs through 2014.
North America is expected see sales of more than 10 million connected TVs in 2011, rising to 37 million units in 2014.
“With some emerging countries having excellent broadband infrastructure, the adoption of connected TV capabilities is a natural next step in TV feature innovation,” said Paul Gray, director of TV electronics with DisplayResearch.
The report found that sales of connected TVs will include formation of two groups: those that allow users to watch Netflix streams, Vudu transactional video-on-demand movies and Hulu Plus, among others; and an emerging group of so-called smart TVs that allow users to navigate the Web.
DisplaySearch defines a smart TV as a TV that can retrieve content from the Internet without the restrictions of a portal, that has intelligent search and recommendations, is upgradeable by its owner and is able to network seamlessly with other devices in the home.
“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,” Gray said.