Five TV trends to watch at IFA 2023

Last year, IFA 2022 returned to a full-scale, in-person show for the first time since 2019. This year’s CES 2023 also witnessed a pre-pandemic level of attendees. What hasn’t followed suit in returning to the norm is the scale of TV brands’ booths and subsequent TV technology leadership typically seen at these shows. Even though these are the two largest consumer electronics events worldwide, the latest events proved that these types of exhibitions are becoming a less popular forum for brands of TV sets. Many TV brands did not have booths, and some chose to have separate off-site private showrooms. A discouraging sign was the lack of new product announcements from TV brands at these shows. 

It is not surprising that most TV brands are not optimistic about the return on investment from big tech shows. With the TV market growth slowing down, and less technological innovation, the industry is now competing on lower price points and producing larger display sizes. 

The space left vacant from the lack of TVs at exhibitions has been replaced by smart home appliances which are expanding dramatically. Electric vehicle display spaces have grown larger, and experience-type booths showcasing technology such as virtual reality/augmented reality are on the rise. Consumption slowdown in the European TV market expected to be more prominent in the second half of the year, means it will be unlikely that new, groundbreaking technological trends will be presented at the upcoming IFA 2023.

However, it is worth paying attention to the following five TV trends that have continued since CES 2023 earlier this year.

1) Chinese TV brands are winning unit market share. At CES in Las Vegas, TCL and Hisense were able to exhibit a large number of TV models in their public booths. They were successfully attracting consumer attention with high-quality products that helped enhance their own brand awareness. Throughout the first half of 2023, TCL and Hisense have steadily gained TV unit market share in North America. It is expected that after the North American market, their next focus is to target the European market. Unit volume competition will be fiercer than ever in the European market for Chinese TV brands, who are looking to solidify their presence in the second half of 2023.

2) The trend of super large screen TVs is developing with sizes growing beyond even the 85-inch range up into 98-inch and 100-inch TVs. “6.18” is China's second-largest shopping festival after 11.11, also known as Singles' Day, in November. The 6.18 festival runs from May 26 to June 20. At this year’s 6.18 online shopping event, the TV sizes with the largest price promotions were from the over 98-inch range. Samsung also launched 98-inch TVs in the US at unconventional prices, fueling this super-sized TV competition. Europe still has a relatively smaller demand for such ultra big sizes compared to North America and China. However, competition in the 98-inch TV market is getting fiercer than ever with a desire to develop revenue increases and profit gain. The TV business has experienced fierce price competition during the recent economic downturn in Europe.

3) The Smart TV operating system platform competition is the most important battle in the TV market. Consumers say the quality of the Smart TV function is the number one driver for new TV purchases. Brands must compete on user engagement rather than on hardware specifications. The new advertising-driven TV market business model is well established in North America and is set to expand into more regions. The objective is to capture the largest number of TV-active users and lengthen their viewing hours. In the US, various TV operating systems (OS) such as Roku, Tizen, WebOS, Google TV, CastOS and Fire TV are fiercely competing in the smart TV advertising market. Omdia predicts that the platform competition for TV OS will move into the European market at IFA this year. Vestel has already installed various OS as well as directly manufacturing for several brands. Not only Roku, but also Xperi, which is a latecomer, is aggressively securing OEM manufacturers in the European market. Vestel's presentations of its various OS strategies should not be missed at this IFA.

4) OLED TV growth was most successful in the European market. However, headwinds such as the Russian-Ukrainian war, devaluation of Euro, severe inflation, and the energy crisis quickly cooled down Europe’s TV consumption for premium TV products. Interest in the OLED TV market, centered on Korean companies, has been steadily reviving as LCD panel prices have also been rebounding. The most notable change is that Samsung Electronics is using LG Display's white OLED TV panel for the first time to prepare an 83-inch product for the market. IFA will present an opportunity to measure Samsung Electronics' new OLED TV strategy.

5) EU regulations on TV power consumption have taken effect since March 2023 and will impact all TV products shipping into Europe. There are no exemptions for 8K and micro-LED based sets. To maintain the existing LCD premium strategy, TV manufacturers must solve the power consumption issue in 8K TVs as well as Mini LED TVs. LCD panel prices have been rising in 2023, providing a challenge to maintain existing performance specifications and enhance energy efficiency without adding more cost. These are technological improvements to pay attention to at IFA. It will be interesting to see how this changes manufacturers' 8K strategy and Mini LED TV product strategy.

Other topics to watch for at IFA 2023 in Berlin (Sept 1-5): The importance of sustainability will continue to grow steadily in the future. Technological boundaries between TV and smart monitors will quickly collapse, and the industry’s investment in gaming features will continue every year. 

Omdia analysts will share their key takeaways and observations from this year’s IFA trade show in a future update.

For further insights on market trends, analytics and industry forecasts, book an analyst meeting onsite at IFA, Berlin 2023.