85% of all flat-panel TVs manufactured will be Internet-connected, smart TVs by 2016

Technology researchers Gartner have forecasted that by 2016 85 percent of all flat-panel TVs manufactured will be connected to the internet and will be Smart TVs, as the only method for television manufacturers to differentiate is to connect TVs to multiple platforms.

Gartner believes unit production of flat-panel smart TVs will grow from 69 million in 2012 to 198 million in 2016, with global unit production of smart TVs expected to reach 108 million in 2013.

Paul O’Donovan, Principal Research Analyst at Gartner, said: “In the end, the choice may be all about the extra content that one TV brand offers over another. Consumers will be asking questions such as, which Internet TV services can the TV access? Are these the sites I think are valuable? Can I use my smartphone or tablet with this TV?

“It is critical for the TV industry during this global economic downturn and decline in consumer confidence levels, to sustain sales and maintain or grow market share — especially in emerging markets. This is difficult when demand has slowed, so the extra functionality offered by smart TVs becomes the product differentiator — if prices are already competitive and all other variables are equal between brands.”

Gartner defines Smart TV as having the ability to search the Internet for video content and play it. Add to this the functionality to add apps from an app store operated either by the TV manufacturer or by a third party.

“With connectivity to smartphones and tablets comes the ability to pull content from the Internet on one device and push that content to the TV. For those TV manufacturers that also make smartphones and tablets, the marketing advantage of the smart TV makes educating the consumer a lot easier,” said O’Donovan.

The full report is available on Gartner’s website.

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