As the shares of large panel televisions tripled in the last five years due to the change in consumer viewing habits, the shares of small screen televisions have witnessed a significant drop.
As per the market share sourced by BusinessLine from CRISIL, the small screen televisions were around 40-50 per cent in FY17 and over the last five years, the market share stands at less than 15 per cent in FY22.
The dip in the share of small screen televisions can be primarily attributed to the increase in competition in the television segment that resulted in a price war leading to declining in large-scale television prices.
“Combination of reduction in prices, rising incomes, increasing internet penetration, higher bandwidth availability, and rising consumption of OTT streaming have led to an increase in the share of large-sized televisions,” said Pushan Sharma, Director, CRISIL Research.
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The shift of the rural Indian market to 32-inch televisions and the urban market moving towards 40-inch and above television screens is also the reason for the decline in the market share.
“Aspirations of Tier 1 and Tier 2 cities have impacted the overall increase in large panel televisions. With LCD and LED having issues and price drops in large screens, there was humongous growth in smaller cities,” said Avneet Singh Marwah, CEO-SPPL, Brand Licensee Thomson.
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Consumers have started opting for televisions that had the latest technologies, further leading to the decline in the demand for small-screen televisions.
“The market contribution of 32-inch TVs and below started declining from 50 per cent to 34 per cent in YTD 2022,” said Gireesan Gopi, Business Head- Home Entertainment, LG Electronics.
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“We have witnessed an increase in the demand for Ultra HD OLED televisions, and we expanded our range of OLED TVs from 42-inch to 97-inch. Over the past 5 years, bigger screens are preferred by consumers,” Gopi added.