Bigger Spending, Bigger Screens: India's Smart TV Market Shifts Gears

Smart TVs are now taking up even more space in our lives. Rather, bigger smart TVs are commanding the maximum share among Indian households. Premium models have been dialling up growth in India’s smart TV market which took off to a very slow start at the beginning of the year. In fact, in the first half (H1) of 2024, the country’s smart TV market declined between 2-3 per cent, according to Counterpoint Research data. 

“The reasons behind the fall in H1 were macroeconomic headwinds, inflation and restricted purchases by consumers. There was very less replacement of older TVs, and buyers were essentially cutting back on spending on TVs,” explained  Anshika Jain, Senior Research Analyst at Counterpoint Research.

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This decline in the smart TV market in the first half of the year was also attributed to increased input costs for TV makers. In the wake of declining margins for longtail brands, some small players even exited the India market. The share of longtail brands in the smart TV segment is comparatively low, as per Counterpoint’s recent report.

Videotex, a longtail brand and manufacturer of Lloyd, Realme, Toshiba, Hyundai, BPL, Daiwa, and others declined to respond to a request for comment on the situation.

However, the smart TV segment bounced back during the festive period which is also the September quarter (Q3).

“We witnessed a big jump during the festive season as compared to last year and the market saw seven per cent growth in Q3,” Jain noted.

Consumer Spending Leaning Towards Bigger Screens

Consumer spending in India this year leaned towards 43-inch and 55-inch models, with the latter witnessing faster growth in Q3. The top five players that dominated the category were LG, Sony, TCL, Samsung and Xiaomi, courtesy of brand value, product quality and sound after-sales as well as distribution strategy.

These OEMs collectively accounted for more than half of the total smart TV shipments during this period. In fact, Sony posted its best performance in over eight years, reporting impressive sales growth exceeding 20 per cent for the fiscal year 2023-24. 

According to Sony India Managing Director Sunil Nayyar, this remarkable growth stems from the company's strategic emphasis on high-end products, aligning with the current trend of premiumisation sweeping the Indian market.

"43-Inch Is The New 32-Inch Model"

Unlike other years, this year, the India TV market saw a massive surge in the popularity of 43-inch models. The market share of 32-inch models is constantly declining. The share of 43 to 54-inch models is around 38 per cent while 32 to 42-inch models make up 36 per cent of market share.

“43-inch is the new 32-inch model. Earlier, 32-inch TVs were contributing the highest to the smart TV market which has now been replaced by 43-inch TVs. Also, high-end specs like QLED panel, 4K capabilities are offered in 43-inch TVs at a lower price point these days,” Jain explained.

Easy Financing A Key Driver

Easy financing options were a key driver behind the surge in the popularity of bigger-sized TVs in this period.

“Even if (customers) are going to buy for the first time, the brands are offering discounts and that translates into ‘affordable pricing’,” the Counterpoint Analyst said.

Smart TVs As Content Hubs

Smart TVs have become a hot content hub with more and more people turning to them for OTT content consumption. These devices are being used for watching series, sports events, and even live shows, creating “stickiness" among consumers, and reviving the falling smart TV category.

“There has been an increase in the average number of TVs per household. Earlier, you had one TV in the living room. Now, people want the same experience for the bedroom. They are opting for 55 inch TVs for living room and bedroom, and this trend is also driving demand,” Jain noted.

Rural Vs. Urban Consumers And Smart TVs

In terms of the buying patterns of rural and non-urban buyers in the country, many are still using CRTVs and are likely looking to invest in a smart TV for the first time. These consumers will drive the 32-inch smart TV segment in India. On the other hand, tier I and tier II buyers have more money to spend, and easy financing options, and they are driving the demand for larger TVs.

In terms of year-on-year (YoY) growth, the market will remain flat. Counterpoint predicts that next year the market will grow between 5-6 per cent. 

“The average life cycle of a smart TV is 6-7 years. The first surge for smart TVs took place during the COVID-19 pandemic. Now, the same people will replace their TVs next year onwards, as per the traditional replacement cycle,” Jain added.