This report provides Transforma Insights’ view on the AV Equipment market. This segment includes a variety of sub-applications, including Televisions, Projectors, Home Video, Home Audio, AV Controls, Gaming Consoles, and Smart Speakers. These electronic devices are internet-connected audio-video equipment that are mostly used by consumers.
The market has been dominated by the proliferation of OTT platforms, declining use of set-top boxes, and cord-cutting, which has driven demand for smart devices. This has increased the ubiquity of connected AV equipment, which has become the default configuration for devices in the sector. The most prominent among these devices are Smart TVs, Gaming Consoles, and Smart Speakers. Equipped with wired (Ethernet) and wireless (Wi-Fi and Bluetooth) connectivity technology, these devices have become common to a great number of households.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
The “market developments” section has been divided into Overview, Televisions and Projectors, Home Video, Home Audio, Smart Speakers, Gaming Consoles, and AV Controls.
The “Overview” section has been further categorised into:
This section charts the reasons driving the demand for AV equipment (like their ability to display content from other media sources) and then refers to one of the prominent uses for connected AV Equipment - streaming over-the-top (OTT) content. It then explains how this increasing preference for OTT platforms has led content and streaming content providers to increase their content expenditure and reduced the scope for set-top box providers. For instance, in 2025, Netflix spent USD18 billion on content, an increase from USD15.3 billion in 2019. It also discusses a major downside of this trend – rising costs for consumers. Case in point, Netflix has consistently hiked its price – from USD13.99 in October 2017 for Premium (4K, 4 screens) to USD24.99 in January 2025.
This subsection begins with an interesting characteristics of the market, which is allowing consumers to combine the functionalities of multiple devices into one. It then explains how integration with virtual assistants and supporting interactivity with other smart homes are other prominent reasons for connectivity across the board.
It also talks about the advantage of ensuring connectivity from a vendor perspective. For example, the ability to upgrade software is an advantage, which allows vendors to reduce cost and time to market, although there are associated challenges as well, like consumers reacting badly to older products when they become obsolete.
This section begins by explaining how unequal internet infrastructure across the globe (especially in developing countries) may negatively impact the market. It then adds that the widespread presence of AV equipment creates a ready customer base; however, market maturity means demand is largely replacement-driven, which slows growth and can delay connectivity adoption as users defer upgrades.
It then shifts it focus to privacy concerns and discusses how this concerns consumers, resulting in slower adoption. For example, Google Assistant was found to record sensitive in-home data, prompting companies like Google and Amazon to introduce opt-out features and suspend human review of voice recordings in regions such as the US and Europe.
This section talks about the evolution of the features of smart TVs, including content streaming and web browsing. It also refers to the communication technologies they use (like Ethernet and Wi-Fi). It also talks about how the number of smart TVs are rapidly increasing across major economies. For example, in the UK, at the end of 2023, an estimated 86% of primary TV sets in use were used to watch TV online.
It talks about the challenges faced by display devices, including feature redundancy, availability of other streaming devices or smart set-top boxes (such as Roku, Amazon Fire, Apple TV, and Chromecast), and security and privacy concerns (as hackers can infiltrate home Wi-Fi setups by accessing other devices on the network).
It first describes smart projectors and talks about their features (such as voice control and app support), uses (like displaying media onto a much larger space), and the connectivity technology they use (like Wi-Fi and Bluetooth). It also touches upon non-portable projectors, talks about their uses, and compares them with portable ones. It also alludes to the challenges for smart projectors, such as the introduction of large-screen TVs.
This subsection first focuses on the enterprise use of smart TVs and projectors and charts their driver. It explains that the demand for smart TVs is primarily driven by hospitality, retail, public, and government sectors, while that of smart projectors is driven by sectors primarily focusing on education and corporate training. It also gives a few examples of relevant IoT deployments in this application, including Hisense U8H and Epson Home TW750 3LCD 1080p Projector.
This section has also been categorised into the following subsections.
This subsection claims that a large portion of the Home Video market is HDMI sticks, and talks about their features, uses, benefits, and the connectivity technology used to support these devices. It then talks about the growth opportunity for streaming sticks as well as the hurdles they may face. For instance, while customers who are entrenched in Apple or Amazon will be inclined towards purchasing a device from this sector, its market will face stiff competition in the upcoming time as smart TVs become more common and sophisticated. It further adds that many smart TV manufacturers have partnered with these HDMI device makers (such as Roku and Fire TV) to have a compatible built-in streaming interface.
This subsection explains how traditional set-top boxes are gradually using the internet and the benefits of doing so. For example, in the UK, Sky has introduced a set-top box that delivers TV entirely online, enabling users to stream OTT services and access traditional channels without a satellite dish or cable installation.
It also lists the challenges associated with set-top boxes which will impact their adoption, charts the connectivity technology used in these devices (including Wi-Fi and ethernet), and provides a few examples of relevant IoT deployments in this application, including Amazon Fire Stick and Google TV Streamer.
This section first describes what home audio devices are, and then talks about their features (such as being able to connect to multiple speakers) and the communication technologies they use (like Wi-Fi and Ethernet). It then discusses factors that are driving the demand for connected home audio products (like fewer people choosing to listen to music they physically own) and lists a few challenges to this market (such as many devices being sold as second-hand ones). It also mentions that many devices retrofit connectivity to existing audio hardware (along with its advantage) and describes a few examples of relevant IoT deployments in this application, like Bluesound Pulse Flex (2025) and Audio Pro C10 MKII.
This section of the report describes smart speakers and their functions, like allowing hands-free media playback, smart home control, telephony, messaging, e-commerce, and informational queries. It then talks about the connectivity technology they use (including Bluetooth and Wi-Fi) and the challenges they face (like a lack of monetisation opportunities), forcing manufacturers to focus more on creating new opportunities through subscription. For instance, Amazon’s Alexa division has been struggling to achieve profitability for years; it lost USD25 billion between 2017 and 2021, and USD5 billion in 2022 alone.
It also talks about how the proliferation of LLMs has impacted the market for traditional smart speakers, and then goes on to point out some of the companies (like Rabbit R1) that have launched pocket-sized AI-powered personal assistant devices. It also gives a few examples of relevant IoT deployments in this application including Circa Resort & Casino deploying Amazon's Alexa Smart Properties (ASP) in its rooms; and a few relevant product descriptions in this application, including Apple HomePod and Google Nest Audio.
This section has been further categorised into the following sub-sections:
This subsection first explains that the gaming console market has declined as smartphone gaming has surged. For instance, an ExpressVPN survey shows mobiles dominate gaming (70%), followed by consoles (61%), PCs/laptops (50%), tablets (34%), and VR headsets (9%). It then charts the benefits of smartphones, but adds that enthusiastic gamers still use more powerful hardware. It then adds that there is a further threat to this market from standalone VR devices such as the Meta Quest line of headsets.
This subsection talks about the increasing reliance on internet-connected gaming consoles, allowing them to evolve into multi-functional devices. For example, in March 2011, a Nielson Survey stated that half of Netflix users used video gaming consoles to tune into video streaming services. However, it adds that this trend has changed in recent years, and many consumers can now directly stream Netflix and other OTT services through a smart TV or a Home Video device.
This subsection examines the growing dependence of video game consoles on internet connectivity, which has driven digital game sales to surpass physical formats. For example, as of early 2024, 75% of new games were sold as digital downloads and 25% via physical retailers. It also explores the other reasons that support this trend (such as lower publishing and distribution costs and reduced space requirements for customers). It also talks about the increasing functionalities of online games (like online updates) and the new monetisation opportunities they enable.
It discusses the main challenges faced by gaming consoles, like their cost, which often make them popular, only in wealthy countries like the USA. It then adds that the ability to stream video games represents a potential shift in the market, away from gaming consoles and towards streamed game content via subscriptions. It also describes some examples of relevant IoT deployments in this application like Sony PlayStation 5 Pro and Nintendo Switch 2.
This section of the report first describes what AV Controls or universal remote controls are and their functions (like performing multiple functions and automating multiple tasks). It then talks about how the connectivity technologies used to support these devices have changed over time, and the challenges that may limit their adoption (like the ubiquity of smartphones).
It also touches upon connected control panels and describes their usage and challenges. A few examples of relevant IoT deployments in this application have also been included here, such as Caavo Control Center and LG Magic Remote Control.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of connected AV equipment devices, which will grow from 4.5 billion in 2025 to 6.4 billion in 2035.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the AV equipment application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the AV Equipment Application Group will grow at a CAGR of 4%.
