Futuresource released a report revealing that the global market is projected to grow by 1.2% this year and set to end the year with 233 million shipments. The trade value is also projected to decline by 1% to USD 83.7 billion. “Despite the challenges and the disruption that 2020 has delivered, disposable income has remained high in most Western markets,” says Juan Villegas Leyba, Research Analyst at Futuresource Consulting.
The economic consequences caused by the pandemic will carry on through 2021 as consumers will be either unwilling or unable to return to the pre-2020 levels of out-of-home activities. The researcher forecasts a global CAGR of 0.5% growth in TV shipments out to 2024. “In a year defined by lockdowns and social distancing measures, we’ve seen consumers divert their disposable income away from outdoor activities and travel to focus instead on the home environment," "With the continued rise of streaming services and a raft of high-profile service launches, people have turned to TV sets for information and entertainment. In line with this shift, consumers have been prepared to spend money accordingly.”
4K, Smart TV, and OLED are some of the technologies contributing to the growth of the market. According to Leyba, smart TV accounts for nearly two-thirds of units this year, showcasing a growth of 76% by 2024. OLED currently has inroads in the works. As a result of consumers; decision to choose LCD panels, its growth has slowed. “Smart TV is leading the way in shipment terms,” says Leyba. “Nearly three in every four sets sold this year will be smart, with the global installed base breaking the billion-unit barrier for the first time. 4K is another big hitter.”
In terms of regions around the world, North America has surpassed the others with an overall unit growth of 15% this year. Consumers in Western Europe have also responded by investing in TVs, both upgrading existing sets and buying additional smaller screens to satisfy competing demands for screen time in family households. Financial support from governments in both regions has helped to cushion any immediate economic impact and has paved the way for spending on home-based activities. Eastern Europe is also witnessing dramatic growth, driven predominantly by Russia. META is also expected to grow in 2020, with consumers particularly in Gulf states switching their spending to home entertainment.
Despite the positive feedback, viewers on the eastern hemisphere have amassed criticism for TV consumption. While consumers in Japan and Australia have responded to the crisis by spending more on home entertainment, the average viewer has increase his/her consusmption, with India set to face the deepest decline of all. Latin America was facing political and economic instability before the pandemic was declared, further adding to the region’s declines.