Research: Number of Global UHD TV Homes Passes 200 Million

The number of homes worldwide using an Ultra HD TV has now passed the 200 million mark, according to the latest research from Strategy Analytics’ Connected Home Devices service.

The report, 4K and 8K Ultra HDTV Global Market Forecast, predicts that 222 million homes will own an Ultra HD TV by the end of 2018, an increase of nearly 50% over the past twelve months. The report also forecasts that more than 600 million homes will own an Ultra HD TV by 2023. The vast majority of these homes will have a 4K display — only 3% of Ultra HD TVs in use will be 8K-ready by this time.

Other key findings from the report include:

  • North America will continue to lead in adoption of Ultra HD TVs, with 71% of homes owning one by 2023;
  • The largest market in terms of annual sales of Ultra HD TVs is the Asia Pacific region, where they will reach nearly 46 million units this year;
  • Sales of 8K Ultra HDTVs will reach more than 400,000 units in 2019 and more than 11 million by 2023, which will represent a 6% share of the total Ultra HD TV market; and
  • By 2023 3.9% of Ultra HDTV homes in North America will own 8K displays, compared to 4.1% in Asia Pacific and 1.7% in Western Europe.

“The success of Ultra HDTV has been driven by technology adoption rather than content and services,” said David Mercer, principal analyst and the report’s author, in a statement. “4K video and TV services are now becoming more widely available, meeting the expectations of 4K Ultra HDTV owners for the best quality TV experience. But our expectations for 8K services should be cautious: while Japan has now launched 8K TV in preparation for the 2020 Tokyo Olympics, the rest of the world will be slower to follow suit, given that the number of homes with 8K-ready TVs will remain low until the mid 2020s.”

“Owners of 8K TVs will primarily be watching 4K and HD content, while the TV’s image processors will do a good job of scaling most content to give impressive images,” said David Watkins, director at Strategy Analytics, in a statement. “Amidst the excitement surrounding 8K TVs, it is important to remember that image resolution, whether native or otherwise, is only one element in perceived video quality, and TV vendors and content players alike should not lose focus on other important drivers of consumer satisfaction, such as High Dynamic Range (HDR) and High Frame Rate (HFR).”

IHS: Shipments of Larger-Size TV Screens Increase

Size matters when it comes to high-definition televisions.

Despite flat TV shipments in the most-recent fiscal period, the average TV unit-shipment screen size increased more than any previous quarter in the past year.

Global shipments of 60-inch and larger TV screen sizes increased more than 40% year-over-year, with even stronger growth in North America and emerging markets, as prices fell to new lows for 65-inch and 75-inch units, according to new data from IHS Markit. The growth rate is more than 10% higher than in recent quarters.

While promotions for the World Cup raised TV unit sales more than 7% in the first half of the year, Western Europe, Latin America, and Middle East and Africa all experienced double-digit TV shipment year-over-year declines in the third quarter.

“Each year during the holiday shopping season, brands and retailers try to push ever larger screen sizes to keep revenue growing and encourage adoption of value-added features like 4K and smart TV,” Paul Gagnon, research and analysis executive director, IHS Markit, said in a statement.

“This year, there’s higher interest in 65-inch 4K TVs for many of the key promotional deals, leading to less focus on smaller screen sizes under 50 inches.”

IHS said expanding screen sizes bodes well for sales of 4K units. In fact, the share of 4K TV shipments in Q3 reached a record high of nearly 44%. Due to sustained premiums and larger average size, 4K TV made up more than 71% of all TV revenue during the quarter.

Prices of 65-inch 4K LCD TVs fell to an average of $1,110 in North America during the quarter, from $1,256 in the previous quarter. In China, the average price of 65-inch TVs was even lower – just $928, after already falling below $1,000 in the second quarter. Xiaomi and other brands have aggressively pushed prices lower as competition intensifies in China. In other regions, prices were considerably higher for 65-inch 4K TVs, due to less intense retail competition and a smaller addressable market.

LCD TV shipments increased by 14%, quarter over quarter. Quantum dot LCD TV shipments rose to 663,000 units in the quarter, with an average size exceeding 60-inches. The average size of OLED TVs increased to more than 59 inches for the first time, as the 65-inch shipments share grew to a new high of more than 38%.