China Dominates Smart TV Market as North America Surges, IHS Says

For the first time, smart TV shipments exceeded 100 million units in 2015

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Thursday, May 19, 2016 9:01 am EDT

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ENGLEWOOD, Colo.
"Smart TV will continue to grow at a more gradual rate"

ENGLEWOOD, Colo. (May 19, 2016) – Worldwide shipments of smart TVs in the fourth quarter of 2015 reached 48.5 percent of all TV sets shipped in the quarter. In all, 34.2 million smart TVs were shipped in the fourth quarter, contributing to shipments breaking the 100 million mark for the first time in 2015, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. Smart TV shipments will reach 109 million in 2016, rising to 134 million in 2020.

“Consumers increasingly regard smart functions as essential,” said Paul Gray, principal analyst, IHS Technology. “The market dynamic has shifted from seeding the market to self-sustaining demand for built-in internet streaming functions.”

More than three-quarters of televisions in China were shipped with smart functionality in 2015, while in North America the popularity of the feature surged from 36 percent to 48 percent. The popularity of Netflix and other services is reinforcing demand in North America, according to the IHS Technology TV Design and Features Tracker. 

It is a mixed picture in other regions. Latin America continues to strongly increase smart TV shipments, despite a depressed television market. Penetration was diluted by basic TV sets, to subsidize Mexico’s digital switchover. Excluding such sets, more than half of TVs shipped in Latin America in the fourth quarter of 2015 included smart features. Japan and Europe appear to have reached a plateau, with small declines in 2015, largely due to the end of aggressive promotion campaigns by TV brands and a shortage of good local content.

“Smart TV will continue to grow at a more gradual rate,” Gray said. “China, the dominant engine of smart TV growth, has little extra room to grow. Other developed markets are increasingly saturated, while lack of broadband internet connections remains an issue in emerging regions.”

TV displays will be a key theme in the coming SID Display Week 2016 Business Track, which is co-organized by IHS and the Society for Information Display. For more information, visit SID Display Week.

The IHS TV Design and Features Tracker analyzes every key video and display component inside every major brand TV. For information about purchasing this report, contact the sales department at IHS in the Americas at +1 844 301 7334 or AmericasLeads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

 

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IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 140 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs nearly 9,000 people in 33 countries around the world.

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