The latest NPD Connected Intelligence forecast anticipates there will be 260 million installed internet-connected TV devices attached to the internet, and capable of delivering apps to TVs by the end of 2020. This 31% growth in TV-connected devices over the forecast period is driven by smart TVs and streaming media players.
This study represents an update of NPD's December 2016 study, when the market research firm predicted that there will be 238 million connected devices by 2019 (see "NPD: 238 Million Internet-Connected TV Devices by 2019").
The "TV-Connected Device Forecast" reveals that evolved smart TVs will approach parity with streaming media players as platforms delivering apps to TVs by 2018, and through the end of the forecast period, increasing the influence of both on home entertainment. According to the forecast, streaming media players will make up 31% of ownership growth, while smart TVs will be responsible for 48%, accounting for nearly half of installed internet-connected TV device growth through 2020.
"Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs," said John Buffone, executive director, industry analyst, NPD Connected Intelligence. "Additionally, 4K mass market adoption plays an important role, as nearly all 4K TVs are internet capable."
The rate of attaching connectable-TV devices to the internet is projected to increase from 73% in 2016 to 81% of installed units by 2020. This will eventually lead consumers to choose a preferred device, with decreased use of other devices.
With the popularity of installed internet capable TVs to access online content on the rise from 30 to 55% among consumers, streaming media player original equipment manufacturers (OEMs), such as Google, Roku and Amazon are more committed than ever to partnering with TV OEMs to integrate their operating systems directly into displays.
"All trends point to smart TVs and streaming media players driving the majority of growth in TV-connected devices," noted Buffone. "When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease of use consumers demand."
The NPD Group Connected Intelligence "TV-Connected Device Forecast" draws data from the quarterly Connected Home Survey and Consumer Technology Tracking Service. The Quarterly Connected Home Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18 and older from diverse regions and demographical backgrounds.