Market Trends of India Smart TV and OTT Industry
This section covers the major market trends shaping the India Smart TV & OTT Market according to our research experts:
Increasing Adoption of Smart Devices Across IoT Ecosystem to Drive the Market Growth
- According to Ericsson's IoT Connections Outlook report, the number of devices connected by IoT technologies increased by approximately 80% and reached 330 million in 2021. The growth can be attributed to the integration of connectivity competence in many devices and applications, along with the development of various networking protocols that have advanced the growth of the consumer IoT market across various end-user industries.
- Increasing internet penetration can also contribute to India's widespread expansion of IoT-enabled consumer electronics, such as smart TV. According to Bain and Company's, Unlocking Digital for Bharat: USD 50 billion Opportunity, the report stated India has the second-highest number of active internet users, with about 390 million residents who use the web at least once a month. Further, the Ericsson connection outlook report stated that the growth of IoT technologies is enhanced by an added network capability that enables massive IoT co-existence with 4G and 5G.
- Additionally, the increasing significance of smart TV in the IoT ecosystem, due to the features like ambient intelligence and automatic user assistance, along with the rising disposable income of the people in India, is further boosting the market growth.
- Samsung India, a consumer electronics firm, has recently announced that it expects a nearly 25% growth in the LED TV segment. The company aims to capture around 36% share of the overall TV market by bringing products with the right proposition and new technologies. Owing to this, the company, in April 2022, launched its ultra-premium 2022 Neo QLED 8K and Neo QLED TVs in India.
- Moreover, recently, Xiaomi expanded its manufacturing in India by adding three new partners for smartphones and smart TVs. The new partnerships are expected further to increase Mi India's manufacturing capacity in India. Such developments by the major vendors are expected to boost market growth over the forecast period.
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Internet Protocol Television (IPTV) to Boost the Market Growth
- Video on demand (VOD) is one of the dynamic features offered by IPTV. The video data is transmitted via Real-Time Streaming Protocol. VOD has gained a tremendous amount of popularity in the recent past. This has resulted in the increased adoption rates of Smart TVs. Moreover, with growing smartphone penetration and lower data tariffs, VoD services through OTT platforms show promising growth in India.
- OTT and IPTV are gaining traction driven by increasing broadband penetration and changing content consumption behaviors in the region. The effect can be significantly observed in Asian countries, like India, which represented an 8.9% GDP growth rate in FY 2021. Rapid urbanization in the region, standing at 35.39% in India, and the increase in spending power play a significant role in adopting IPTV in households.
- Moreover, the Government of India's initiatives toward digital transformation, such as digitization of cable TV and direct-to-home (DTH) services, are also favoring the adoption of IPTV in the country. The IPTV scenario in India is witnessing change owing to the advent of the network services provider, with the company providing free IPTV live subscriptions to its customers. With other companies following suit, the demand for mobile-based IPTV services is expected to increase in the region.
- The market is witnessing strategic investments from various vendors to remain competitive. For instance, in July 2022, the Government of India announced the approval of the merger between Sony Pictures Networks India and Zee Entertainment.
