India's smart TV market experienced a 14% year-over-year decline in shipments during the first quarter of 2024, as reported by Counterpoint's IoT Service. This decrease is primarily attributed to several factors, including muted consumer demand, rising costs of raw materials, reduced promotional offers, an excess inventory build-up at major original equipment manufacturers (OEMs), and a diminished demand for smaller-screen smart TVs. Notably, shipments from Chinese brands such as OnePlus, Haier, and Realme decreased by 30% YoY.
Despite the overall market decline, there is a growing consumer preference for premium and large-screen smart TVs, continuing the trend from 2023.
Brand performance and market trends
Research Analyst Akash Jatwala highlighted that Samsung emerged as the leading player in the Indian smart TV market for the first time. Following Samsung, LG and Xiaomi secured the second and third positions, respectively. Samsung's success can be attributed to the introduction of new mid-range models and attractive deals on its Crystal Vision Pro series, as per Counterpoint’s report.
The Indian smart TV market, according to the report, is moving towards consolidation, with the top five players' market share increasing to 57% in Q1 2024 from 41% in Q1 2023. Consumers are increasingly favouring well-known brands, leading to a gradual exit of long-tail players. Mid-tier brands like Hisense, Panasonic, Westel, Toshiba, and Motorola recorded positive YoY growth by offering QLED TVs with 4K resolution and enhanced colour vibrance at competitive prices.
Market dynamics and consumer preferences
Anshika Jain, senior research analyst, Counterpoint, noted that a significant increase in shipments of larger-screen smart TVs (55 inches and above), which grew by 23% YoY in Q1 2024. Consumers are opting for large-screen and premium models to enhance their visual experience. This was the only segment that showed positive growth during the quarter.
QLED TV shipments saw a remarkable 182% YoY increase in Q1 2024. Mid-tier and long-tail brands are expanding their QLED offerings, including 43-inch models in the sub-INR 30,000 price range, to gain a competitive edge. Additionally, 4K resolution smart TVs experienced a 10% YoY growth in shipments, driven by the increasing availability of 4K content on OTT platforms, including IPL broadcasts.
Emerging trends in software and content
OEMs are now focusing on providing guaranteed software updates for newer models, addressing issues of laggy performance and outdated operating systems commonly seen in mid-tier to long-tail brand smart TVs. On the content side, manufacturers are offering free ad-supported streaming television (FAST) channels and complimentary subscriptions to leading OTT platforms to differentiate themselves from competitors.
Future outlook
The input costs for smart TVs have risen due to high panel prices and increased demand for larger displays. The market is expected to remain muted in 2024, with an anticipated 10% YoY decline in shipments due to stagnant consumer demand and decreasing preference for small-screen TVs. Despite the increasing preference for premium products and large-screen TVs, the overall revenue is likely to remain flat due to the rise in the average selling price (ASP), as per the report.
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