In an interaction with Industry Outlook, Arjun Bajaaj, Director, Videotex International Group shares his views on the current trends in smart TV market and how TV manufacturing is evolving in India.
Smart TV market is expected to grow at double-digit CAGR in the next five years. How do you see the current evolution of this market in India? What are the major factors driving its growth?
The Smart TV market
has seen a strong and steady growth especially during the pandemic. India is the world’s fastest growing OTT Market and witnessing a 30% growth YOY in this segment, which indirectly has also boosted the TV Industry. The pattern that has strongly evolved is that of consumers hogging content on TV (cinemas being shut during pandemic), which has surged to record breaking numbers during lockdown. In fact, last year post lockdown the smart TV market really picked up, as it was the only source of entertainment for consumers at home and with all latest releases happening on OTT platforms
& cinemas being shut.
The Smart TV Market was earlier largely dominated by 32inch screen TVs and has now evolved to larger screen. In spite of the price optimization on the TVs, manufacturers too have offered a range of possibilities from mid to high price range, making Smart TV an affordable reality for all. Both surge of Smart TV with booming OTT and preference towards larger screens leads the way forward for the Smart TV Market in India
What are the major challenges faced by TV manufacturers in India? How do you propose to address them?
The key concern is the increased prices of the TVs and shortage of raw material such as the Open Cells which contributes to 70% of the total TV cost. Over a period of time, the cost of the open cells has gone up by 400% as compared to June 2020. Also, another challenge is that the leading smart TV brands in the industry are bearing the margin crunch and not increasing prices, which diminishes the price gap between different category brands. There is also a huge shortage in the semiconductor industry which in return has led to shortage of IC chipsets which are required for the manufacturing. The shortage of the raw materials has impacted the entire electronics industry leading to an overall price rise.