India’s smart TV market is riding a wave of growth, witnessing an impressive 8 percent year-on-year (YoY) expansion in the first half of 2023. The International Data Corporation (IDC) reports that 4.5 million televisions were shipped during this period. In this article, we delve into the dynamics of India’s flourishing smart TV sector, examining key trends, market leaders, and the pivotal role played by Xiaomi.
Online Sales Festivals Fuel Expansion: A substantial portion of the smart TV market’s growth in 1H23 can be attributed to online sales festivals, accounting for a significant 39 percent of total TV sales. E-commerce platforms have emerged as powerful catalysts in driving this growth.
The Ascendancy of 55-Inch TVs: While 32-inch and 43-inch TVs have long been dominant in India, the 55-inch TV segment has seen a remarkable surge, leaping from 9 percent market share in 2022 to 12 percent in 1H23. This surge has spurred a noteworthy 35 percent YoY growth in the US$400+ price segment.
Budget-Friendly TVs Gain Momentum: Budget-friendly TVs priced below US$200, offering affordability without compromising on quality, have experienced a surge in demand. Their market share swelled from 26 percent in the previous year to an impressive 39 percent in 1H23.
Declining Average Selling Price (ASP): Smart TVs have become more accessible to a broader consumer base, with the ASP dipping to US$380 in 1H23, marking a 3 percent YoY decline. This trend has made high-quality smart TVs more affordable for Indian consumers.
Shifting Preferences to Affordable Smart TVs: The decreasing prices have led consumers to opt for affordable smart TVs instead of retrofitting non-smart TVs with streaming sticks. As a result, shipments of streaming sticks plunged by a substantial 85 percent in 1H23.
Xiaomi’s Resilient Leadership: Xiaomi continued to maintain its dominant position in the Indian smart TV market, securing a robust 14 percent market share. Xiaomi’s unwavering success can be attributed to its consistent focus on delivering quality with its 5A and Redmi series TV lineups, all at competitive price points.
Strong Contenders Follow: Samsung closely trailed Xiaomi with a 13 percent market share, while LG secured a respectable 12 percent share. Samsung’s budget-friendly T4000 series played a pivotal role in its market performance.
TCL and OnePlus Making Strides: TCL and OnePlus secured the fourth and fifth positions, capturing 8 percent and 7 percent of the market share, respectively. Both brands are gaining traction among Indian consumers with their compelling offerings.
Segment Breakdown: Xiaomi took the lead in the HD and FHD segments, commanding an impressive 23 percent share. In the 4K segment, LG claimed the top spot with a 26 percent share in the first quarter of 2023, closely followed by Samsung with 25 percent.
Storage Preferences: The report spotlights that 8GB internal storage emerged as the most preferred choice among consumers, recording a substantial 33 percent YoY growth.
Evolving Consumer Desires: Beyond the fundamental features, consumers are increasingly seeking visual aesthetics such as narrow bezel or bezel-less TVs. Additionally, advanced features like HDR, enhanced DCI-P3 coverage, Dolby certification, and improved sound output are in high demand.
2023 Outlook: In comparison to the 7 percent YoY growth recorded in 2022, the smart TV market in India is poised for a “healthy” second half of 2023. The impending festive season, marked by enticing offers and discounts across channels, is expected to further boost sales. However, the overall growth rate for the entire year 2023 is predicted to remain relatively flat.
In conclusion, India’s smart TV market is in the midst of an exciting expansion phase, fueled by online sales festivals, affordability, and evolving consumer preferences. Xiaomi’s continued dominance, combined with the competition from Samsung, LG, TCL, and OnePlus, ensures that consumers have a wide array of choices as they embark on their smart TV journey.
