The steady upward growth apropos to the demand for OTT media services has significantly driven the adoption of smart TV sticks, according to research firm. Fact.MR, with the demand for smart TV sticks projected to expand at a steady CAGR of 7.1 per cent in terms of value throughout the period of assessment, 2018-2028.
Sales of smart TV sticks are likely to remain concentrated in the developed regions of United States, given the high purchasing power parity of individuals in the country. However, emerging economies of Asia Pacific excluding Japan (APEJ) region, such as China and India have showcased high inclination toward adoption of smart TV sticks. The report forecasts that by end of 2028, the demand for smart TV sticks in China is projected to grow at a meteoric pace with its sales volume crossing 6 million units.
Albeit high inclination toward online streaming and OTT adoption in emerging economies, fluctuating bandwidth becomes a crucial aspect. With strong internet network as a preliminary requirement for smart TV sticks, low or fluctuating bandwidths are likely to pose problems during streaming owing to low download speeds with excessive spikes and lags.
The smart TV sticks market growth is also impacted from the trade tensions between China and the US, as the latter continues to impose high duty tariffs on imported electronic products. Such stringent government regulations between the two economically stable giants are likely to cause gap in supply and demand, consequently challenging the growth of smart TV sticks market.
Manufacturers of smart TV sticks are largely focusing on promoting and selling their products using third party online channels. With growing popularity of e-commerce, the trend of online selling has reached its peak as customers opt for online purchasing given its convenience and cost effectiveness aspects. That said, sales of smart TV sticks through third party online channels are expected to rove at a bullish pace during the period of forecast and are likely to cross $1.2 billion by end of 2028. According to the report, this channel is likely to offer significant sales potential in the coming years, that manufacturers can leverage to tap customers even in remote places.
The report foresees that the sales of smart TV sticks that do not possess 4K video support are high as compared to their 4K counterparts. The non 4K smart TV sticks sales are likely to cross $950 million in 2019, leading the smart TV sticks market and are expected to maintain status quo throughout the period of assessment. However, in the coming years, the demand for 4K video support smart TV sticks is projected to expand at a significant pace, albeit at a lower base as compared to non 4K smart TV sticks.
Renascent competition between major players has been witnessed in the smart TV sticks space. With growing technological advancements, novelty in smart TV sticks has led to development of competitive products. Big giants such as Roku, Amazon and Google are involved in new product developments with a view to shun competition and gain hold. The fierce competition in the smart TV sticks landscape has resulted in these players touting smart TV sticks at reasonable rates, yet packed with advanced features that an individual seeks. However, not stopping in product development, players are further inducing new makeovers. For instance Roku’s options such as Roku Express and Express Streaming Stick have been re-fabricated with new makeovers that has boosted power along with neat booting features.
Overall, the market for smart TV sticks has portrayed a positive outlook and is expected to grow at an optimistic speed in the coming years, offering new growth opportunities for players. Contact Fact.MR to know more captivating insights on the smart TV sticks topic.