According to the Consumer Technology Association (CTA), registers will be ringing briskly this holiday season, thanks to the latest tech advances in television.
U.S. sales of 4K Ultra High-Definition televisions are expected to reach 4.5 million units.
This will drive total sales for 4K UHD TVs to 10 million total for 2016 – a 40% increase over 2015. Sales are expected to continue to surge in 2017 and beyond.
More brands and screen sizes, with units available at lower prices, are expected to fuel sales of 4K UHD televisions.
CTA forecasts 4K UHD displays will account for 56% of all TV sales during Q4, as the category steadily moves toward comprising nearly 50% of total annual TV sales. CTA’s annual holiday research shows TVs are among the most desired technology holiday gifts this year, behind notebook computers and tied with smartphones.
Even as HDR-compatible sets and displays with other new technologies comprise an increasing share of the product mix, the average wholesale price of 4K UHD TVs has declined 22% year-to-date.
“We’ve been bullish about 4K UHD since day one, and market growth continues to justify our enthusiasm,” said CTA President/CEO Gary Shapiro. “Manufacturers are introducing an increasing variety of 4K UHD displays at a range of price points. Many of these displays include new innovations like HDR and WCG that make the viewing experience more immersive. Strong growth in display sales, combined with the increasing number of 4K UHD Blu-ray discs and other content, 4K cameras, and additional devices in the market will cement 2016 as a ‘banner year’ for 4K UHD.”
The robust 40% increase in sales since last year makes 4K UHD TV one of the industry’s fastest-growing segments, although CTA initially forecast total unit sales for the year to reach 14.5 million units.
The updated forecast reflects finalized Q2 data showing a more gradual growth curve as TV makers transitioned to new 4K UHD models, said Steve Koenig, CTA’s senior director of market research. “We also expected to see TV manufacturers move more quickly to a greater mix of 4K in screen sizes above 40 inches, which now appears to be shaping up as a 2017 trend.
“With 10 million units shipped this year, 4K UHD sales are historically very strong, particularly for the TV category which has overall household penetration of 96 percent,” Koenig further explained. “Growth of the 4K UHD market continues to dwarf the transition to high-definition television. Just three years since introduction, cumulative sales of 4K UHD displays are forecast to hit 18.6 million units, while sales of HDTVs reached 4.2 million units in their first three years on the market.”
The 4K Ultra HD Blu-ray format sold its 1 millionth disc in October, racking up more than $25 million in consumer spending, according to data from Futuresource cited by the Blu-ray Disc Association.