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Emerging markets boost DTV demand

Posted: 08 Nov 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LED TV? smart TV? 3D TV?

According to the latest "Integrated Circuit Market Drivers" report from IC Insights, LED TVs and smart TVs have replaced 3D TV as the 'must have' features when buying TVs during the year. In fact, LED TVs are seen to account 37 percent of global TV shipments, up from 15 percent last year. LED TVs are expected to drive 53 percent of DTV shipments next year.

Besides being thinner and lighter, LED TVs have rapidly gained favor among consumers because they tend to offer broader color range, improved contrast ratios and use less power. Also, LED TVs are said to be more reliable offering more than 100,000 hours of life compared to traditional cold cathode fluorescent lamp (CCFL) LCD TVs that are often rated at 20,000 hours.

In general, DTV growth rates are expected to remain fairly flat in developed markets such as North America, Europe and Japan since the big digital upgrade cycle in these regions has mostly already occurred. However, India, China and other countries throughout APAC and Latin America are forecast to enjoy strong DTV growth. Fast-growth economies, increased disposable incomes and large populations will drive this expansion. APAC is undergoing a DTV boom that some believe will result in 70 percent of homes having a DTV in 2015, up from about 35 percent last year.

global TV shipment

The report also revealed the method of delivering programming is quickly transforming broadcast TV. Just as smartphones brought the Internet and thousands of applications to cellphone users, smart TVs are bringing Internet and Web 2.0 features to TVs and offering access to TV broadcasts, videos, movies, photos and other content via web. An estimated 20 percent of TV shipments this year were smart TVs, but this is expected to increase to nearly 40 percent next year. Consumers can watch almost anything found on a website on their TV, and that is partly why so-called 'cord cutting,' where consumers drop cable to watch videos or TV shows on Hulu, Roku or their Xbox 360, is accelerating.

Meanwhile, 3D TV has gone from cutting-edge television technology last year to commodity-like status this year. Manufacturers, who in 2010 pulled out the stops to convince users to upgrade to 3D TV, now promote it as a nice-to-have feature. In fact, TV manufacturers are slowly adding 3D technology into all of their newest products, so chances are a new buyer is getting 3D technology whether he or she specifically chooses it.

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