China leads boost in global smart TV market

The latest NPD DisplaySearch Quarterly Smart TV Shipment and Forecast Report has revealed that more than a quarter of TVs shipped during 1Q12 were equipped with Internet connectivity. Japan topped the list where 46 percent of sets had networking capability and Western Europe with 36 percent. China followed closely behind with 32 percent.

In the report, NPD DisplaySearch further analyzed TV sets by service type. Basic connected TVs can access structured services from broadcasters such as Hbb.TV in Europe, BBC's iPlayer in the UK, Hulu in the U.S. and AcTVila in Japan. Netflix and YouTube also offer such services. According to NPD DisplaySearch, a smart TV can access a branded portal and service, not just publicly available platforms such as YouTube or broadcaster services.

"Connected TV is largely driven by content," stated Paul Gray, director of TV electronics research for NPD DisplaySearch. "Where there are compelling things to watch, the Internet becomes a major source of entertainment. We are now seeing a second stage of evolution as internet video relocates from a PC screen onto the TV screen. In particular, Chinese consumers have found plenty to watch on the Internet, so Internet connectivity follows."

One of the more surprising findings from the report indicates that no region is being left behind. Developed regions can be expected to have high shipments, and areas with low broadband uptake such as the Middle East and Africa also show a strong interest in Internet connectivity.

"It is an interesting trend," added Gray. "There are countries in emerging regions where mobile broadband far outnumbers fixed lines, so consumers are looking to share mobile content on a big screen."

By region, the largest shipments were in China with almost three million smart TVs shipped. Western Europe was second, with 2.1 million units shipped, while North America was third with almost 1.4 million units shipped. Strong seasonality linked to the Lunar New Year holiday helped increase shipments in China. Western Europe showed weaker demand as consumers there tend to exhibit more caution toward smart TVs.

By region, the report finds that open Internet access is dominant in China, as consumers have a shortage of structured services and want to look elsewhere for content to view. However, 2012 models from all major brands incorporate browsers, and this feature trend is likely to proliferate outside of China.

- Julien Happich
??EE Times