Market Trends of US Smart TV Industry
This section covers the major market trends shaping the US Smart TV Market according to our research experts:
Boosting Demand for 55 Inches and above Screen Size
- The United States has seen a shift from small- and medium-sized TV screens to big screens. This is mainly driven by the increasing per capita income, followed by the growing change for premium and luxurious products. According to the US Department of Commerce, per capita, personal income in the United States was USD 63,444 last year, an increase from the previous year.
- Moreover, the demand for online streaming apps has shifted the consumers' focus toward the trend of an immersive experience in audio and video quality, which has been a significant driver for smart TVs with larger screens.
- Furthermore, TVs have served as a retreat for people during the pandemic, as the market witnessed a double-digit increase in soundbars, streaming players, and mounts. At Video & Audio Center stores in Los Angeles, a retail store carrying the sale of larger displays, a 98-inch Samsung 8K TV exceeded expectations. When the retailer began selling the USD 60,000 8K display at its Santa Monica store in June, it sold three quickly. Since then, the chain has expanded sales of the display to its other four LA-area stores.
- According to Samsung Electronics America, screens larger than 75 inches have become one of the market's fastest-growing segments. As consumers started spending more time at home, working from home, and even teaching their kids, they increased their focus on investing more in home improvement projects to make their homes more comfortable and enjoyable.
- The industry players are also offering streaming services to remain competitive. For instance, Disney gives consumers the option to bundle Disney+ with Hulu and ESPN+ for USD 12.99 per month (a USD 5 per month discount). CBS offers a bundle of Showtime and CBS All Access starting at USD 14.99 per month (a USD 2 per month discount). All the above factors are increasing the demand and adoption of Smart TVs in the region.
- Though the demand for smart TVs with 55 inches above-sized screens was present before, the outbreak of the COVID-19 pandemic transformed the scenario into a need for smart TVs with much bigger screens. During the spring, as state and local regulations across the United States recommended people stay at home, consumers purchased televisions at levels usually seen during the holiday season.
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OLED Segment to Witness Significant Growth
- The television industry has ramped up its use of OLED displays recently. With OLED becoming the future of the display market and being used almost everywhere in the best possible ways, television manufacturers are increasingly using OLED displays for televisions. The increasing adoption in the television industry will further augment the OLED panel's growth in the regional smart tv market.
- According to the Consumer Technology Association, US OLED TV factory revenue increased by 11% to USD 3.3 billion in 2022 from USD 2.98 billion in 2021, further driving the market growth.
- The adoption of innovative technologies, such as Quantum dot LEDs (QLEDs) across Ultra-high-definition (UHD) Smart TVs, is expected to fuel the segment demand over the forecast period. Televisions in this range have high penetration rates compared to the others. For instance, in June 2021, LG Electronics introduced the first global 83-inch OLED television in the United States. The 83C1 is also the most giant 4K OLED TV industry.
- Furthermore, price reductions in OLED TVs may create profitable expansion prospects. According to the US Department of Energy, labor costs for organic light-emitting diode (OLED) panel fabrication in the United States is expected to fall to USD 5 per square meter of OLED panel produced by 2025.
- Improvements in OLED innovation in the following years, as well as lower raw material costs, are likely to lower the expense of OLED TVs, propelling the industry in the foreseeable future. Additionally, the emergence of new industry participants and the mass manufacturing of OLED TVs will help reduce OLED TV prices, driving the demand for OLED displays. In addition, in December 2021, Samsung placed its bets on hybrid TVs featuring quantum dot/OLED technology, commonly called QD-OLED. Although Samsung Electronics purchases panels from LG Display, the company revealed plans for its in-house display division to manufacture the quantum dot/OLED (QD-OLED) TV panels.
