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Connected TV Device Ownership to Double by 2017
Internet Connectivity in TVs, Set-top Boxes, Other TV-connectable Devices to Reach 1.8 Billion over Next Four Years
Boston, MA - December 16, 2013 - Predicting a future of increasingly connected living rooms with improving streaming capabilities, the global number of Connected TV Devices is set to grow from an average of just 0.5 per household in 2013 to 1.0 per household by 2017, according to a new report from Strategy Analytics. The Strategy Analytics Connected Home Devices (CHD) report, "Global Connected Devices Forecast 2008-2017," predicts a five-year Compound Average Growth Rate (CAGR) of 20 percent from 2012 to 2017 for these devices.
"Although AV devices have become increasingly overlooked by consumers in favor of infotainment devices such as Smartphones and Tablets, the integration of IP connectivity is breathing new life into the sector and creating new opportunities for vendors" says Eric Smith, analyst. "We see sustained growth in connected models of Flat Panel TVs, Set-top Boxes, DVRs, Digital Media Adapters (i.e. Apple TV, Google Chromecast, Sky NOW TV), and Blu-ray players. And although ownership of Games Consoles is expected to shrink from current highs as gaming becomes more casual and increasingly mobile, these powerful devices will continue to act as important multimedia hubs in the living room."
The report also forecasts that globally, the average home will own 2.6 portable connected devices by 2017, up from 1.7 in 2013. Despite falling ownership levels of traditional notebook PCs, the global average number of mobile computing devices will reach one per household by 2017 thanks to rapid adoption of low cost tablets and new form factor laptops. Wi-Fi enabled Digital Cameras will also be a growth area as vendors look to facilitate easy uploading of images and videos to the Internet without the need to hook up the device to a PC. However, other singe function portable connected devices such as Portable Games Consoles, Portable Media Players, and E-book Readers will not fare so well as multi-functional devices such as Smartphones and Tablets cannibalize those dedicated product sectors.
Connected Home Devices Service Director, David Watkins adds, "Consumers are increasingly drawn to over-the-top (OTT) services in the home and on the go, so it’s not surprising to see shipments of connected devices rising year after year. Furthermore, vendors are looking to build in IP connectivity into devices that have traditionally been un-connected to garner higher retail sales prices but also take advantage of the expanded availability of and interest in OTT content. Accordingly, we see market retail value growth of connected CE devices doubling the pace of growth in the overall CE device market."
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