PORT WASHINGTON, N.Y., Sept. 6, 2018 /PRNewswire-PRWeb/ -- In the U.S., at the end of 2017, 210 million devices were installed in consumer homes actively delivering internet connectivity to the TV screen, and by the end of 2021 there are forecast to be 275 million, according to The NPD Group. While smart TVs and streaming media players will continue to drive installed internet-connected TV device growth, making up 49 percent and 29 percent of the total growth respectively through 2021, the TV-Connected Device Forecast anticipates the number of new households purchasing devices will begin to slow late in the forecast period, as the market reaches saturation.
Historically, in the U.S., gaming consoles were the leading installed and internet-connected TV device, but by the end of 2018 the number of streaming media players and smart TVs installed and connected to the internet are expected to surpass gaming consoles. According to the forecast, smart TVs will overtake this leading position, driven by sales of smart TVs 40 inches and below coming equipped with operating systems, continued growth of internet connect rates, growing usage of streaming video services, and rising 4K/UHD adoption – as virtually all 4K TVs come with apps installed.
Additionally, according to the TV Ownership Trends Report, consumers replace TVs every 6.9 years on average, and given that smart TV sales picked up during 2013, replacements are expected to accelerate during 2019 and 2020. This will drive smart TV sales, but lead to a slowdown in the number of additional connected TV households, a trend that will be seen in the streaming media player market as well.
"Device purchases are shifting from first time connected TV households and those connecting TVs in secondary rooms, to consumer's entering into a device and smart TV upgrade cycle," said John Buffone, executive director, industry analyst, NPD Connected Intelligence. "From a content distributor perspective, this means investing in resources to ensure today's apps are updated for later model year devices and TVs."
*TV-connected devices include internet connected TVs, video game consoles, Blu-ray Disc players and streaming media players installed and connected to the internet. These devices are connected to the internet, not just internet capable.
Methodology
The NPD Group Connected Intelligence TV-Connected Device Forecast draws data from the quarterly Connected Home Survey. The Quarterly Connected Home Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They report on more than 12,000 TVs installed within over 34,000 household rooms.
About Connected Intelligence
Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer's connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com.
About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
SOURCE NPD
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