TV Market Insights: Large Screen, UHD, and Convenience
In Seoul, Korea, Samsung Electronics recently invited media to discuss key trends and the outlook for the global TV market, as well as share regarding the company’s business direction.
Among the key trends discussed included the rapidly increasing demand for UHD quality large screen TVs, as well as ongoing consumer pain points related to TV convenience.
Demand for Large Screen UHD TVs
According to market research firms GfK and NPD, global market revenue for big screen TVs, larger than 55 inch, occupied over 40 percent between January and August 2017. In North America, 60 percent of TV sales were for big screen TVs larger than 55 inch, with 30 percent for TVs larger than 60 inch.
Related to TV resolution, the market is also experiencing a shift from FHD to UHD. Between January and August of this year, according to GfK and NPD, revenues for UHD TVs accounted for over 50 percent of the global TV market, and 60 to 70 percent in North America, Europe and Korea.
Desire for Easier-to-Use TVs
Consumers also continue to desire TVs that are easier to use. Samsung recently conducted research into the U.S. and German TV markets, involving more than 1000 consumers in each region who indicated willingness to purchase a new TV product. The results show that 23 percent and 15 percent of the respondents in the U.S. and Germany respectively pointed out “complicated cable wires” as the first pain point. Research participants also indicated continuing difficulty in linking external devices to their TVs, typing via the TV screen, and navigating smart TVs.
Strong Positioning Aligned with Global Trends
Based on these trends, Samsung continues to strengthen its leadership in the global TV market. According to GfK and NPD, between January and August 2017, Samsung was the number one player, recording 34 percent of total global TV market revenue, higher than the market shares of the second and third largest players combined. The company also recorded 42 percent for big screen TVs, 60 inch and larger, and 38 percent for UHD TVs. Samsung also led in market share based on TV pricing, with 44 percent in TVs, priced over USD 1500, and 37 percent for TVs over USD 2500.
Samsung’s strategy revolves around providing consumers with the broadest options for big screen TVs, such as QLED TVs and premium UHD TVs in 65-, 75-, 82- and 88- inch sizes, as well as curved and flat screen options. Samsung’s TV accessories have also received positive reviews, including the clean and clutter-free cable solution, Invisible Connection; auto recognition and control function, Auto Detection; and One Remote, providing an easy way to access many different remote controls in one.
“With a significant increase in QLED TV sales in the second half of this year, there is no doubt that the position of Samsung as a leading player in the premium TV market continues to grow,” said Yoon Lee, Senior Vice President of the Visual Display Business at Samsung Electronics. “Samsung will continue to lead global TV market trends with a business strategy that meets the rapidly changing needs of global consumers.”