Connected Consumer Electronics Devices to Reach Three Billion Units by 2016

Connectivity continues its inexorable march into home entertainment. A wide range of home media equipment is now network- or Internet-enabled, with the number of connected devices shipped into consumer markets expected to increase steadily at a compound annual growth rate (CAGR) of 21 percent through 2016.

Three billion and counting
ABI Research’s forecasts for connected devices for the period show that between 2010 and 2016, a cumulative total of more than three billion devices will have shipped worldwide.

The most common home entertainment devices to include media connectivity are televisions and Blu-ray players. According to ABI Research practice director Jason Blackwell, TV and video player connectivity is being strongly driven by streaming services such as Netflix in the United States and LOVEFiLM in the UK. Gaming consoles also create powerful demand for connectivity; although connected consoles are nothing new, they still rank strongly in connected home entertainment and will see increased shipment numbers through 2014.

Sound as well as vision
Networked and streaming audio are also important segments of this market. “Online radio such as provided by Pandora, and the new 'cloud-based' music streaming services from firms such as Rhapsody, Melon and Spotify are also boosting the market for networked audio,” notes Blackwell. “Other innovations such as Apple’s AirPlay, which allows wireless streaming of music or other audio content throughout the home, will also help to drive demand.”

ABI Research