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TV Apps Are Driving Growth for Internet Connected TVs, with 260 Million Installed by 2020

July 7, 2017 By Finley Engineering in

Some 260 million devices able to deliver apps to TVs in U.S. Internet households will be connected to the Internet come year-end 2020, according to the latest forecast from NPD Connected Intelligence. Internet-connected smart TVs will account for nearly half the forecast growth (48%), while streaming media players will contribute 31 percent, according to NPD.

 Overall, the number of TV-connected devices installed among U.S. Internet households will increase 31 percent over the forecast period, the market research service highlights.

Streaming Media Demand
Demand for streaming media adapters is poised for a sharp growth spurt amid growth of recently introduced linear, 24×7 streaming video services, such as DirecTV Now and YouTube TV, according to a recently released streaming media adapters forecast from ABI Research. Global unit shipments will rise to reach nearly 56 million in 2022, and 4K penetration is helping fuel the growth, ABI highlights

Furthermore, ABI forecasts that 100 percent of streaming media adapter shipments in North America and Western Europe will be 4K-based in 2022. The first 4K streaming devices are now emerging on markets.

Comparing uptake of smart TVs and streaming media players, NPD believes household penetration of the former will achieve parity with streaming media boxes and sticks by 2018, as well as onward through the end of the forecast period.

Connected TVs
In addition, NPD forecasts the rate U.S. Internet households attach connectable TV devices to the Internet will rise from 73 percent of installed units last year to 81 percent by 2020. End users will winnow out alternatives and choose a preferred connected TV device to the exclusion of others over the course of the period, NPD believes.

“Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “Additionally, 4K mass market adoption plays an important role, as nearly all 4K TVs are internet capable.”

Use of Internet-enabled TVs to access online content rose from 30 to 55 percent from Jan. 2013 to Jan. 2017, the market research provider points out. As a result, streaming media player manufacturers, such as Amazon, Google and Roku, continue to be compelled to partner with their TV OEM counterparts to incorporate their operating systems (OS) software directly into displays and contribute to the design of compelling, often competing, lines of digital and latest generation 4K UHD TV sets.

 Summing up: “All trends point to smart TVs and streaming media players driving the majority of growth in TV-connected devices,” Buffone commented. “When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease of use consumers demand.”