Smart TV sticks to grow at 8% CAGR through 2023

Jan. 10, 2019
According to Technavio, the global smart TV stick market is expected to post a compound annual growth rate (CAGR) of close to 8% during ...

According to Technavio, the global smart TV stick market is expected to post a compound annual growth rate (CAGR) of close to 8% during the period 2019-2023.

Smart TV sticks are growing in popularity worldwide, thanks to features that allow consumers to watch content from OTT providers such as Netflix, Hulu, Amazon Prime, and various other sources over TV sets. Further, smart TV sticks are available for a range of TVs including older TVs, high-definition TVs, and 4K TVs. The devices also enable consumers to control the TV using mobile applications. The small and easily portable sticks are extremely fast and can work even at limited Internet speed. The devices have inbuilt storage, which enables consumers to install new OTT applications coming into the market. Thus, the numerous benefits of smart TV sticks would augment the growth of the market in focus during the forecast period.

Technavio says the emergence of OTT content providers will have a positive impact on the market and contribute to its growth significantly over the forecast period.

Consumers are shifting from traditional broadcasting to on-demand streaming video. Consequently, several TV broadcasters are developing and introducing their own OTT platforms to boost the growth of their business. For instance, in 2015, Star network in India launched its own OTT platform, Hotstar. The platforms can also telecast live tournaments such as the World Cup, increasing the popularity of the platforms and applications. Consumers can easily download applications in their smart TV sticks to let them access all the OTT platforms and applications through a single device.

"Apart from the increased benefits of smart TV sticks, factors such as the growing penetration of Internet, and advantages of OTT providers over cable TV providers are expected to fuel the growth of the global smart TV sticks market during the forecast period," said a senior analyst at Technavio.

The research house segments the global smart TV sticks market by type (non-4K and 4K and above), and geographical regions (APAC, EMEA, and the Americas).

The Americas region led the market in 2018, followed by EMEA and APAC respectively. Although the APAC region held the smallest share of the market in 2018, it is expected to register the highest incremental growth during the forecast period.