As entry-level price points drop well below $1,000, model availability expands and consumers seek to upgrade ageing flat panel TVs, demand for 4K/Ultra HD TVs is soaring worldwide, says research from Strategy Analytics.
The Ultra High Definition TV Displays: Global Market Forecast predicts that shipments of 4K/Ultra HD TVs grew 633% in 2014 to reach 12.1 million units with Asia Pacific accounting for three-quarters of the market followed by North America (12%) and Western Europe (11%). Three-fifths of all Ultra HD TVs shipped globally in 2014 were 50" or larger in size, while a quarter of all 50" and larger TVs that shipped were Ultra HD-enabled.
Yet Strategy Analytics believes that in 2015 these levels will rocket with global shipments of Ultra HD TVs to more than double in 2015 to 27.5 million units as wide colour gamut technology and high dynamic range support will be built into premium Ultra HD TV displays in 2015 creating a more discernable price tier structure in the market. It expects more than 100 million will be shipping annually by 2018.
Looking at popular sizes of sets, the analyst believes that sub 50" Ultra HD TVs will become more widely available in 2015 and the sub 50" category will account for the majority of Ultra HD TV shipments globally by the end of 2016.
Reaching just under half of households, the US is set to emerge as the leading market for 4K or Ultra HD TVs in terms of household penetration by 2020, about double the global average. Behind the US will the leading Western European markets (around 36%), Australia, South Korea and China.
"Ultra HD will become the standard resolution for virtually all large screen TVs within three to four years' time and we will see it penetrate further into smaller screen sizes as manufacturing efficiencies improve," commented report author and Strategy Analytics service director David Watkins. "As we saw with the transition from SD to HD, it is the TV manufacturers who are leading the Ultra HD charge although significant steps are being made on the delivery infrastructure and content production parts of the value chain. As the inevitable price competition eats into the ability of the TV vendors to make any meaningful profit from selling Ultra HD TVs, many brands are adding support for wider colour gamut and high dynamic range in order to differentiate their models and charge a premium over 'standard' Ultra HD models."
