A new connected TV device forecast from NPD Group calls for installed internet connected TV devices in the U.S. to grow from 210 million at the end of 2017 to 275 million by the end of 2021.
The research firm added that smart TVs and streaming media players will propel installed internet-connected TV device growth, comprising nearly half (49%) of the total growth through 2021, with most of the growth in the next couple of years, while a saturated market will slow growth near the end of the connected TV device forecast.
Connected TV Device Forecast
The growth in internet-connected television marks a trend shift: Gaming consoles had been the most popular installed and internet-connected TV device, but that leadership was expected to end this year. NPD Group forecasts that smart TVs will be the new leader, thanks to a combination of sales of smart TVs 40 inches and below coming equipped with operating systems, continued growth of internet connect rates, growing usage of streaming video services, and rising 4K/UHD adoption.
The TV replacement cycle will also have a positive impact on the connected TV device forecast. Consumers tend to replace their TVs every seven years, so they are about ready to replace first-generation smart TVs. This will drive smart TV sales; however, there will be a resulting slowdown in the number of additional connected TV households.
“Device purchases are shifting from first time connected TV households and those connecting TVs in secondary rooms, to consumer’s entering into a device and smart TV upgrade cycle,” said John Buffone, executive director and industry analyst, NPD Connected Intelligence, in a prepared statement. “From a content distributor perspective, this means investing in resources to ensure today’s apps are updated for later model year devices and TVs.”