Connected TV market to see massive boost

The number of TV sets connected to the Internet will reach 759 million by 2018 for 40 countries, according to Digital TV Research. This is up from 115 million at the end of 2010 and the 307 million expected at the end of 2013, translating to 26.8% of global TV sets by 2018.

The US will still command a third of connected TV sets by the end of 2013, but this proportion will fall to 23.5% by 2018, while China will climb from 6.6% of the 2013 total to 16.4% by 2018.

According to Digital TV Research, Google’s Chromecast – a dongle device that gives TVs access to web-based content – and similar products are likely to have a considerable impact.

The global total of connected TV sets via streaming/retail set-top boxes will reach 126 million in 2018, up from only 4 million in 2010.

The number of installed smart TV sets will overtake games consoles connected to the web during 2013. Smart TV sets will account for 34% of the 2018 total connected sets – 259 million. There were 31 million installed smart TV sets by the end of 2010, and this total will rocket to 110 million by the end of 2013.

Despite limited uptake so far, Blu-ray players will be important in the connected TV expansion, with 81 million connections forecast by 2018.

Simon Murray, principal analyst at Digital TV Research, said: “Connected TV is undergoing the largest upheaval in its short history. The introduction of affordable devices such as Google’s Chromecast and Sky’s Now TV are shaking up the market, with connected TV set manufacturers already reducing their prices as a reaction to this increased rivalry.

“The introduction of three next-generation games consoles adds further competition.”