Connected TV Market Size - Industry Report On Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Global Connected TV Market Trends and Insights

Proliferation of Ad-Supported FAST Channels Elevating ARPU in North America

Free ad-supported channels are reshaping revenue models as subscription fatigue lifts the appeal of cost-free viewing. Sign-ups for ad tiers formed 25% of total streaming additions in early 2023, and studios see triple-digit advertiser demand growth. Advanced targeting raises inventory value, letting Connected TV platforms command premiums over broadcast spots. Brands benefit from transparent reach metrics and flexible frequency controls that encourage reallocation of linear budgets. The dynamic widens platform margins and funds exclusive content that differentiates the Connected TV market from pay-TV.

Subsidised Operator-Bundled Smart TVs Accelerating First-Time Adoption in India and Indonesia

Telecom operators pair fibre plans with discounted smart TVs, lowering entry barriers for households that skip incremental upgrades and jump straight to connected screens. In Indonesia, the model is linked to a 5.1% rise in advertising spend for 2025, underscoring its halo effect on local media ecosystems.^{[2]Dentsu Indonesia, " Dentsu Ad Spend Report 2025," dentsu.com}Bundling drives broadband sign-ups, locks customers into longer contracts and opens cross-selling pathways for video-on-demand and cloud gaming. The approach compresses hardware pay-back periods through recurring service revenue, reinforcing the Connected TV market as a strategic extension of telecom portfolios.

On-Device GenAI Upscaling Spurs 4K Upgrade Cycle in China and South Korea

Third-generation AI chipsets elevate HD streams to near-4K clarity, motivating owners of legacy panels to upgrade. Samsung’s 2025 sets deliver 4,000-nit brightness and real-time language translation to broaden foreign-title access.^{[3]Flatpanelshd, "Samsung 2025 TV Line-up," flatpanelshd.com}The feature mix prolongs content lifecycle value and reduces bandwidth cost by streaming lower-bit-rate feeds without visible quality loss. Demand spikes in China and South Korea reflect large back catalogues of standard-definition content gaining renewed appeal when upscaled, accelerating premium panel uptake and supporting price resilience in the Connected TV market.

Advertising Measurement Standardisation Driving Brand Budgets to CTV in the US

Frameworks such as OpenAP and CFlight supply unified reach and frequency metrics across linear and streaming, solving a key barrier to cross-screen campaigns. Advertisers can verify deduplicated impressions, align credit attribution and benchmark Connected TV performance against broadcast baselines. Media buyers increasingly classify Connected TV as a performance medium, unlocking direct-response budgets. As a result, US Connected TV ad spend is on course to clear USD 30 billion in 2024, signalling a structural shift in media planning.

Fragmented CTV OS Ecosystem Escalates App Porting and QA Costs

Content providers must tailor apps for multiple operating systems, each exposing distinct UI, codec and certificate requirements. Engineering teams devote rising budgets to porting, regression testing and certification, slowing feature rollouts. For smaller publishers the hurdle limits reach, tilting bargaining power toward dominant OS owners. The outcome is uneven app availability and inconsistent user experience that can dampen viewer engagement and restrain the Connected TV market.

Restrictive EU Energy-Efficiency Caps Curb 8K Panel Shipments

Rules in force since March 2023 impose tight power ceilings that many 8K sets exceed, forcing brands either to redesign circuitry or limit shipments into the EU. Manufacturers redirect R&D into micro-lens arrays and low-voltage driver ICs, lengthening product cycles. The regulation compresses early-adopter demand in a region otherwise receptive to premium tech, dragging global 8K volume and delaying economies of scale that would benefit the Connected TV market worldwide.

Segment Analysis

By Device: Gaming Consoles Broaden Household Use Cases

Smart TVs held 72% share in 2024, anchoring the Connected TV market with an all-in-one form factor and simple setup. The segment benefits from panel makers embedding faster SoCs and Wi-Fi 7, narrowing the gap with external boxes. Gaming consoles, the fastest-growing category at a 15.6% CAGR, extend living-room utility by fusing AAA gameplay, streaming and social video chat. The Connected TV market size for console-based streaming will climb as cloud-rendered libraries lower entry costs for casual gamers.

Streaming media players remain a bridge for legacy HDTVs, yet their growth tapers as more sets ship with robust native platforms. Manufacturers reposition sticks as travel companions and secondary-room solutions. Meanwhile, set-top boxes find a niche among pay-TV operators who bundle hybrid OTT access to slow subscriber churn, illustrating how device diversity underpins overall Connected TV market expansion.

Note: Segment shares of all individual segments available upon report purchase

By Operating System: Roku’s Content-Centric Interface Gains Momentum

Android/Google TV maintained a 38% shipment slice in 2024 through wide OEM uptake and seamless Play Store integration. Roku OS, forecast to accelerate at 14.1% CAGR, wins converts with an accessible UI that pushes free content and simplifies onboarding. This customer-first design bolsters engagement metrics, attracting advertisers to Roku’s proprietary ad stack within the Connected TV market.

Samsung’s Tizen and LG’s webOS leverage vertical integration, optimising performance and offering exclusive ecosystem features such as SmartThings dashboards or ThinQ voice control. Newcomer Titan OS targets European buyers by curating local language services. The platform race fuels continuous innovation—multi-profile sign-ins, spatial audio modes, cross-device hand-off—each shaping the Connected TV industry and intensifying developer workload.

By Resolution: 8K Builds Premium Opportunity

4K UHD commanded 66% of 2024 shipments and remains cost-efficient for mainstream viewers. AI upscaling chips make 4K streams efficient over constrained bandwidth, sustaining its dominance within the Connected TV market. The 8K class, growing 15.5% CAGR, attracts enthusiasts seeking edge-to-edge immersion on screens above 75 inches. Sports leagues pilot native 8K feeds for marquee events, underscoring future potential.

Regulatory headwinds in Europe elevate the importance of energy-saving panel tech. Brands introduce micro-lens arrays, mini-LED backlights and advanced dimming algorithms to meet targets without compromising luminance. These improvements trickle down to 4K models, creating a virtuous cycle of efficiency and picture quality that strengthens the Connected TV market.

By Screen Size: Bigger Displays Capture Premium Spend

Sets rnaging from 46-55 inches captured 42% share in 2024, balancing viewing comfort with apartment real-estate limits. Competitive pricing, thinner bezels and lighter chassis spur upgrades within this core band. Screens 66 inches and above, advancing at 16.3% CAGR, benefit from falling cost-per-inch metrics and consumer desire for cinematic immersion. The Connected TV market size for ultra-large displays will expand as wall-mount innovations and wireless connection boxes simplify installation.

TV makers showcase 98-inch flagships in retail experience zones, bundling sound bars and subwoofers to raise average order value. Interface designers adjust font scaling and menu spacing to suit larger canvases. Streamers encode artwork and trailers in higher resolutions, while calibration firms offer bespoke tuning services-an ecosystem evolving around big screens and reinforcing demand across the Connected TV market.

Note: Segment shares of all individual segments available upon report purchase

By Panel Technology: OLED Extends Premium Reach

LED/mini-LED panels held 78% share in 2024, providing high brightness at mass-market price points. Mini-LED backlights with thousands of zones approach OLED-level contrast while exceeding peak luminance, keeping the Connected TV market competitive. OLED, projected at 17.1% CAGR, gains traction as tandem-stack architectures triple brightness and mitigate burn-in. LG and Samsung position their 2025 OLED ranges as gaming flagships with 165 Hz support and near-instant pixel response.

QD-OLED and future micro-LED hybrids promise colour volume and lifespan gains, but cost remains high. Suppliers focus on yield improvements and modular assembly to shorten lead times. As panel tech advances, energy efficiency climbs, helping brands comply with regional regulations while giving consumers eco-conscious upgrade paths in the Connected TV market.

By End-Use: Hospitality Fuels Commercial Upswing

Residential buyers generated 83% of 2024 revenue, yet commercial hospitality is the growth engine at 15.8% CAGR. Hotel chains deploy smart displays that double as in-room service portals, support contactless checkout and deliver targeted ads optimised to guest profiles. These capabilities elevate ADR (average daily rate) and open incremental ad revenue, magnifying Connected TV market opportunity.

Education providers adopt large interactive displays for hybrid classrooms, integrating lecture capture and real-time polls. Corporate lobbies use passive 24/7 signage for brand storytelling and wayfinding. Commercial users demand higher brightness, durable components and remote fleet management dashboards-requirements spawning a parallel hardware line distinct from residential sets and broadening the Connected TV industry footprint.

By Distribution Channel: Online Retail Accelerates

Brick-and-mortar outlets retained 62% share in 2024 as shoppers still prefer hands-on picture evaluation. Retailers stage live comparisons of OLED, QLED and mini-LED to showcase differences, driving attachment sales of cables, brackets and extended warranties. The Connected TV market nevertheless pivots online, where channels grow 16.9% CAGR on the back of virtual room visualisers, influencer reviews and next-day shipping.

Brands run direct-to-consumer storefronts, bundling free installation or streaming trials to capture margin otherwise lost to channel mark-ups. Big-box stores counter with click-and-collect, merging web research with rapid pickup. Analytics from e-commerce platforms feed product planning, enabling data-driven SKU rationalisation that boosts profitability throughout the Connected TV market.

Geography Analysis

Asia Pacific led with 37% share in 2024, propelled by a vast population, rising disposable income and mobile-first digital habits. China secured 27.92% of global volume thanks to aggressive pricing by domestic brands and near-ubiquitous broadband. India and Indonesia post double-digit unit growth as operator-financed bundles push first-time adoption.^{[4]Dentsu Indonesia, " Dentsu Ad Spend Report 2025," dentsu.com}Programmatic ad spend in the region rises 24%, reflecting marketer confidence in addressable reach on Connected TVs. Varying penetration trajectories emerge: mature markets such as Australia, South Korea and Japan surpass 85% household penetration by 2029, while emerging nations target 25-50%. Cultural emphasis on communal viewing further underpins device replacement cycles, sustaining Connected TV market momentum.

North America remains mature yet dynamic. Cord-cutting households overtook pay-TV homes in 2024, catalysing a migration of ad dollars to digital video. Roku, with 37% regional streaming-device share, benefits from early market entry and a rich app ecosystem. Unified measurement standards like CFlight remove barriers for national advertisers, driving Connected TV ad budgets above USD 30 billion in 2024. Power-efficient mini-LED sets address stricter state energy codes, while console-level gaming support differentiates premium models. These trends keep the Connected TV market vibrant despite high base penetration.

The Middle East & Africa, though smaller, is the fastest-growing territory at 17.1% CAGR to 2030. Nationwide fibre builds and affordable 4K panels converge with government visions to diversify economies through media. Saudi Arabia illustrates potential: smartphone penetration sits at 98.2%, average daily video consumption reaches 5.1 hours and local streamer Shahid records 9.5 million unique users. Hybrid distribution—linear TV augmented by OTT—remains strong, generating half of total video revenue. As broadband improves, Connected TV devices become central to home entertainment and smart-home control, accelerating overall Connected TV market expansion.