8K TV Sales to Dominate over 70” Size Range
Strategy Analytics has released a new market forecast report that highlights the growing installed base of 8K TVs. By 2025, they see 72M households owning an 8K TV with the format dominating sales of 70’ sets and larger. The China and US market will see the fastest take-up of 8K TVs.
We spoke with David Watkins, Service Director – Connected Home Devices at Strategy Analytics, to get some more details on the forecast and his view of the 8K TV market development. The forecast is for 8K TV households, but Watkins admitted that very few households will have more than one 8K TV by 2025, so this essentially represents an installed base, assuming the TV purchased in the preceding years are still in service.
Sales of 8K TVs were modest in 2020 – around 350K units said Watkins, slowed by the cancellation of the Tokyo Olympics, which was destined to be a big 8K showpiece. But growth should pick up this year with the Olympics still going ahead. Global TV sales will rise to over 1M in 2021 and 4M in 2022.
“We see 8K TV sales making very good penetration into the larger screen size segments, with 40% of sales for 70” and above already 8K by 2023,” noted Watkins. “Overall, the penetration of 8K TVs will lag the rate that 4K penetrated the market as the screen sizes for 8K will be bigger and therefore a more limited market.”
He noted that 8K TVs represent the top of TV brands product offerings with their best technology and features included. As a result, anyone looking for the best TVs will gravitate to an 8K set.
We next discussed the TV panel supply situation where shortages now exist, and panel prices are rising. “This increase in panel pricing will continue for most of 2021, we believe, and will soon impact TV pricing,” said Watkins. “This will slow growth for 2021, but we still think the global market will still see single digital growth.”
Watkins noted that they have been fairly conservative in their TV forecast but admitted that there is good upside potential should Chinese brands like TCL or Hisense continue to focus on value pricing. This might have a big impact on 8K sales as well with the potential to see 8K TVs at near the $2,000 price point by the end for 2021.
“Ultimately, we see the panel makers as the key to driving down 8K TV prices. If one or two switch over entire lines to 8K, that could initiate a stampede among the other suppliers,“ concluded Watkins.