4K TVs in charge as shipments to reach 233m in 2024
4K in pole position, 8K getting new tyres in the pits.
A recent report by report technical research outfit ABI Research confirms that 4K TVs are now firmly in the driving seat and will continue to grow even as the flat screen TV market reaches market saturation.Quoting a figure of 233 million 4K TV sets expected to be shipped in 2024, the report acknowledges that flat screen TV market penetration has become what it describes as ‘quite saturated,’ and that the adoption of modern TVs is being driven by consumer desire for bigger screens, higher resolutions and greater connectivity and content access. The growth to the predicted 233 million units shipped in 2024 represents a Compound Annual Growth Rate (CAGR) of 13%. Businesses use CAGR as a way of monitoring growth rate over multiple time periods.
Khin Sandi Lynn, Industry Analyst at ABI Research, explained, “For now, 4K will be the dominant format of the flat panel TV market, and of the content ecosystem as a result. 4K TV household penetration will reach slightly more than half of the TV households in mature markets, and with penetration still relatively low in emerging markets, there is significant room for 4K market growth in the years to come.”
Obviously, businesses want to get their products into as many households as possible, which can be difficult if consumers see no value in changing or upgrading. However, penetration can be increased by adopting a number of factors including adjusting pricing, launching new products, defining new target markets and developing strategic coalitions.
Of these, the recent introduction of 8K televisions is an obvious contender for creating new interest in a saturated market. As well as satisfying a consumer push towards bigger screens and higher resolutions it is also being backed by a number of associations such as the 8K Alliance, and partnerships between broadcasters and the latest 5G networks.
A number of the main TV manufacturers, including Samsung, Sony, LG and TCL have now introduced or plan to introduce 8K models to the market, albeit at prices outside most consumer’s pockets.
Lynn commented, “The cost of 8K TV sets is far from affordable for most consumers,” before adding, “This will limit the sales volume for the foreseeable future; however, we can expect the price points to decline to a more reasonable level over the next several years just as 4K sets have.”
And, despite the industry’s efforts to get 8K preparations in place, the high cost of 8K TV sets is not the main barrier to 8K take up but rather the lack of content and distribution models. Only Japan’s NHK is currently broadcasting in 8K, though the Korean Broadcasting Corporation (KBS) is working towards this goal. Additionally, streaming service provider, Rakuten, has announced it will provide 8K content later in the year but, overall, service providers are not incentivised to provide 8K content since the current market is so small.
Technical barriers also have to be addressed and one of the main ones is dealing with the much larger files sizes that 8K content creates, leading to distribution and data management issues. The proposed solution is the Versatile Video Coding (VVC) codec, which is expected to be standardised by 2020 and is up to 34 percent more efficient than HEVC.
So, it seems that 4K remains the TV technology most households will adopt and stick with for at least the next 5 years but with 8K waiting in the wings getting ‘get its ducks in a row’ the next TV you buy after that could well be an affordable, 33 million pixel beastie.
Are you already chomping at the bit for the latest in TV tech? Do you plan to be an early adopter and take advantage of upscaling technology until 8K content becomes available? Let us know in the discussion thread.
Source: www.broadbandtvnews.com, www.rapidtvnews.com
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