This report provides Transforma Insights’ view on the AV Equipment market. This segment includes a variety of sub-applications including Televisions and 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 increasing demand for online media and usage of smart devices. This has increased the ubiquity of connected AV equipment, which has become relatively popular with the rising affordability of internet access. The most prominent among these devices are Smart TVs and Projectors, Gaming Consoles, and Smart Speakers. Equipped with wired (Ethernet), wireless (Wi-Fi) connectivity and Bluetooth 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 and revenue.
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. It also discusses a major downside of this trend – rising costs for consumers.
This subsection lists the factors that have ensured connectivity across the board. For instance, supporting interaction with other smart homes and AV devices is a prominent reason, since it allows easy set-up of home entertainment systems.
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.
It focusses on the importance of a reliable, high-bandwidth internet connection – required to operate AV Equipment and delves deeper into the issues associated with it. For instance, while developing countries may have a large number of internet users in urban areas, rural areas may lack the required broadband infrastructure. It then talks about how the Covid-19 pandemic impacted the market positively, which has now reduced, with people getting back to their pre-covid schedules.
This section talks about the major barriers that may hamper the adoption of EV equipment, such as inflation, interest-rate hikes, and privacy concerns.
This section talks about the evolution of the features of smart TVs. For instance, some new television models have voice recognition tools such as Amazon Alexa and Google Assistant for switching channels and searching programs. It also refers to the communication technologies they use (like Ethernet and Wi-Fi).
It talks about the challenges faced by display devices including feature redundancy, and security and privacy concerns (as hackers can infiltrate home Wi-Fi setups by accessing other devices on the network).
It 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 primarily focusses on the enterprise use of smart TVs and projectors. It also elaborates on the factors driving the demand for smart projectors (such as companies focussing on education and corporate training) and gives a few examples of relevant IoT deployments in this application, like Hisense U8H and Insignia F50 QLED.
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.
This subsection explains how traditional set-top boxes are gradually using the internet and the benefits of doing so. It also lists the challenges associated with set-top boxes which will impact their adoption and provides a few examples of relevant IoT deployments in this application, including Amazon Fire Stick and Google Chromecast.
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 2i and Audio Pro C10 MKII.
This section of the report describes smart speakers and their functions. It then talks about the connectivity technology they use (including Bluetooth and Wi-Fi) and the challenges they face (like lack of monetisation opportunities). It also describes the steps undertaken by the manufacturers to create new streams of monetisation. It also gives a few examples of relevant IoT deployments in this application including Amazon Echo and Google Nest Audio.
This section has been further categorised into:
This subsection first explains how internet-connected gaming consoles are gaining momentum and their features. It also discusses some of the factors that are driving the market (including gaming enthusiasts who still prefer gaming consoles) as well as the reasons that have declined the market for gaming consoles (including the easy accessibility of games on smartphones).
This subsection talks about the increasing reliance on internet connection of video game consoles, resulting in the sale of digital games overtaking physical ones. 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 also describes some examples of relevant IoT deployments in this application like Sony PlayStation 5 and Nintendo Switch OLED Model.
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 SofaBaton U2 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 3.3 billion in 2023 to 5.6 billion in 2033.
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 5%.
