Smart TV Market Set for Major Growth: Here’s What You Need to Know
shubham ashtulThe global smart TV market is witnessing a technological and consumer revolution, with industry experts forecasting a surge in growth over the next several years. Valued at US$231.3 billion in 2024, the market is projected to more than double by 2031, reaching a staggering US$465.3 billion. This expansion reflects a robust compound annual growth rate (CAGR) of 10.5% from 2024 to 2031, signaling a promising era for both manufacturers and consumers in the home entertainment landscape.
A New Era of Media Consumption
Smart TVs—television sets equipped with internet connectivity and interactive features—have redefined how audiences consume content. From streaming movies and series to video calls and screen mirroring, the traditional TV set has evolved into a hub of digital interaction.
One of the central forces propelling this transformation is the growing popularity of over-the-top (OTT) services such as Netflix, Amazon Prime Video, and Disney+. As consumer preferences shift toward on-demand, flexible content consumption, smart TVs provide an intuitive and immersive way to enjoy this entertainment without the need for additional hardware.
Key Growth Drivers
1. Technological Advancements
Smart TVs have rapidly advanced in design and functionality. Features such as OLED and QLED displays, 4K and 8K resolution, voice control, and AI-enhanced viewing experiences are now common, with companies continuously pushing the envelope.
Samsung, for instance, has made significant strides in this area. In June 2024, the company introduced its new Neo QLED and OLED televisions, powered by the NQ8 AI Gen3 processor. These TVs offer enhanced image and sound quality, sharp visuals even during fast-moving scenes, and immersive sound through AI-based technologies like Object Tracking Sound and Active Voice Amplifier Pro.
2. Rising Demand for Connected Entertainment
The COVID-19 pandemic accelerated the global shift toward indoor digital entertainment. With streaming services now central to daily life, smart TVs are no longer a luxury—they’re a necessity. These devices support platforms offering vast libraries of content, games, and even interactive services like video conferencing.
3. Affordable Pricing and Accessibility
One of the major turning points in market expansion has been the introduction of budget-friendly smart TVs, particularly from Chinese manufacturers. These affordable models have significantly lowered the entry barrier for middle-class consumers, making it easier for them to switch from traditional TVs.
4. High-Speed Internet and Digital Homes
The global spread of high-speed internet access has bolstered the functionality of smart TVs. As homes become smarter and more connected, smart TVs play a central role in the digital home ecosystem, interacting with other devices and services.
Challenges Ahead
Despite the optimistic outlook, the market does face some hurdles:
Price Sensitivity: While smart TVs have become more affordable, cost remains a limiting factor in developing regions. Consumers with lower disposable income may opt for traditional TVs or external streaming devices.
Competition from Alternative Devices: Devices like media streaming players, set-top boxes, and tablets offer similar entertainment experiences. Their lower costs and portability may sway potential buyers away from purchasing smart TVs.
Category-wise Market Dynamics
Full HD TVs Still Dominate
In 2021, Full HD TVs accounted for around 45% of total smart TV revenue. Their continued dominance is due to wide content compatibility and lower bandwidth requirements, offering a quality viewing experience without the need for high-speed internet.
Android TVs Lead in Operating Systems
The Android TV segment remains dominant, fueled by its access to the Google Play Store, voice search, and compatibility with Google Assistant and Chromecast. The operating system's flexibility and rich app ecosystem make it a favorite among users.
Screen Size Trends: 46–55 Inches Most Popular
Consumers are increasingly opting for TVs between 46 to 55 inches, as this size range offers the best balance between immersive viewing and affordability. The trend mirrors the growing demand for theater-like experiences at home.
Flat-Screen TVs Maintain Market Leadership
Flat-screen smart TVs remain the standard, preferred for their ease of wall-mounting, lower cost, and simpler installation compared to curved alternatives.
Regional Insights
Asia Pacific Leads the Global Market
Asia Pacific, led by countries like China and India, accounts for the largest share of the global smart TV market. In 2021, the region generated US$67.21 billion in revenue, and its upward trend continues. China’s mature manufacturing base and India’s fast-growing middle class are key contributors.
Europe: Innovation Meets Affordability
Europe follows closely behind, driven by a surge in internet penetration and the presence of budget-friendly smart TV manufacturers. Germany holds the largest market share in the region, while the UK is the fastest-growing.
North America: The OTT Capital
North America is projected to grow at the fastest CAGR through 2031. The region’s tech-savvy population and deep-rooted OTT culture have made smart TVs a staple in homes. The United States leads this region, with Canada showing rapid growth potential.
Competitive Landscape
The smart TV industry is a dynamic and highly competitive field, marked by innovation and strategic moves. Established players such as Samsung, LG, Sony, and VIZIO continue to invest heavily in R&D to stay ahead.
In February 2024, VIZIO received the 75th Technology & Engineering Emmy® Award for its large-scale deployment of a proprietary smart TV operating system. The recognition underscores VIZIO's role in democratizing smart entertainment across the U.S., focusing on user experience and accessibility.
Meanwhile, startups and new entrants are adding diversity to the market, introducing niche products tailored to specific user needs. This competitive landscape is expected to intensify as demand for smart TVs grows globally.
Future Outlook
Looking ahead, the smart TV market’s growth will be defined by:
Enhanced User Interfaces: With AI, voice recognition, and personalization, user experience will become more intuitive and adaptive.
Increased Integration with Smart Homes: TVs will function as central control hubs for connected homes, managing everything from lighting to security systems.
Content-First Ecosystems: Manufacturers may expand beyond hardware, investing in proprietary content platforms or exclusive partnerships to lock in customers.
Sustainability and Energy Efficiency: With growing awareness of environmental concerns, future smart TVs may feature greener components and energy-saving technologies.
Conclusion
The smart TV market stands at the crossroads of innovation, affordability, and digital transformation. As global lifestyles continue to embrace on-demand, high-quality entertainment, smart TVs are poised to become even more integral to the modern living room.
With a market expected to exceed US$465 billion by 2031, there's little doubt that the next decade will be marked by smarter, more connected, and more immersive viewing experiences.
Read Related Reports:
Subscribe to my newsletter
Read articles from shubham ashtul directly inside your inbox. Subscribe to the newsletter, and don't miss out.
Written by