Connected TV Market Size

Connected TV Market size was valued at USD 85.4 billion in 2023 and is poised to grow from USD 92.23 billion in 2024 to USD 170.71 billion by 2032, growing at a CAGR of 8.0% during the forecast period (2025-2032).

The fast-growing over-the-top (OTT) streaming services like Netflix, Amazon Prime Video, Disney+, and YouTube are the key drivers in the connected TV market. There is a greater preference among customers for flexible and on-demand content as opposed to traditional broadcasting, and this factors the demand for smart TVs that come with hassle-free internet connectivity and high-definition streaming.

The global connected TV market is seeing explosive growth because of swift digitalization, the expansion of high-speed internet, and changing consumer preferences towards on-demand content. Connected TVs or smart TVs incorporate internet connectivity, where consumers can have access to streaming platforms, web browsing, social media, and gaming applications right from their TV sets. The transition from traditional cable and satellite TV to over-the-top (OTT) streaming services has greatly driven market growth, as customers increasingly prefer subscription-based, ad-supported, and personalized video content.

In addition, the development of display technologies like 4K, 8K, OLED, and QLED is improving viewing quality, and smart TVs are becoming increasingly desirable to consumers. Increased AI-based voice assistant penetration, including Amazon Alexa, Google Assistant, and Apple Siri, further enriches smart TV features, enhancing user experience through voice-controlled operation. Also pushing the uptake is the infusion of AI-driven suggestion, personal marketing, and in-real-time content analysis to lift user experience and drive adoption of connected TV devices. There is also emerging very strong demand underpinned by the uptake of Internet of Things (IoT) technology driving easy connect-and-play experiences from smart TV boxes to other connected home appliances.

Additionally, increased investment from manufacturers in partnerships with content providers, telecom companies, and streaming platforms is strengthening the ecosystem for smart TV content delivery. Emerging technologies like cloud gaming, social networking integration, and interactive commercials further define the connected TV future by turning it into a multi-tasking entertainment hub. Cybersecurity risks, huge upfront prices, and uneven distribution of internet networks across different geographies can restrain market growth, though. Nevertheless, ongoing technological advancements, increasing consumer knowledge, and competitive pricing will be anticipated to maintain the global connected TV market's upward path in the forthcoming years.

Key Market Attributes

Guggenheim analyst Michael Morris hypothesized, in December 2024, a possible The Trade Desk and Roku merger based on The Trade Desk's launch of Ventura, a new connected TV operating system. The theoretical merger would bring together The Trade Desk's sophisticated advertising technology with Roku's enormous streaming platform to form a more formidable competitor to industry giants Amazon and Alphabet. If achieved, this action would be able to hasten advancements in programmatic advertising, personalized content streaming, and ad-supported streaming models and transform the connected TV space considerably in the next 4-5 years. The speculation alone highlights the market’s rapid evolution and consolidation trends.

In August 2023, AppLovin Corporation expanded its presence in the connected TV market with the $430 million acquisition of Wurl, a company specializing in content distribution and monetization for smart TVs. This deal is AppLovin's strategic move beyond mobile advertising, bringing Wurl's technology to bring performance marketing to the connected TV realm. Through Wurl's large network, AppLovin seeks to revolutionize advertising strategy, deepen audience targeting, and maximize content monetization for publishers. Over the next 4-5 years, this move is expected to drive greater adoption of AI-powered, data-driven advertising models in connected TV, benefiting both advertisers and content providers.

In August 2023, LG Electronics unveiled the LG SIGNATURE OLED M (model 97M3), the world's first wireless OLED TV. Initially rolling out in South Korea, LG intends to expand this revolutionary technology to strategic markets, such as North America and Europe. The 97-inch screen has no conventional cables but uses an additional Zero Connect box to deliver video and audio signals wirelessly. This breakthrough has the potential to revolutionize home entertainment systems by providing unmatched flexibility and style. During the coming 10 years, these advances are likely to shape industry norms, compelling competitors to start making comparable wireless display technology.

In September 2024, Amazon announced plans to increase advertisements on its Prime Video platform starting the following year. Following an initial fear of subscriber outrage, Amazon saw no material decline in subscriptions since opening up to advertising eight months earlier. The move is designed to entice even more brands through the provision of extra ad slots and the unveiling of interactive, "shoppable" ads where viewers can connect with products on their screens themselves. With global ad reach around 200 million potential viewers a month, this move is all set to change the face of streaming. In the course of the next decade, the adoption of interactive advertising is expected to be a universal feature among streaming services, raising viewership interaction and opening new avenues of revenue.