While some analysts have predicted that streaming media devices are set to recede in importance as more consumers use the built-in capabilities of their smart TV sets and TV manufacturers increase the programming that is available on their streaming platforms, a new analysis from S&P Global Market Intelligence is predicting that global sales of streaming media devices like Roku and Fire TV will see growth over the next few years.
“We no longer see a substantive growth opportunity for streaming media players and sticks in North America, but this device class may find new growth vectors in other markets where broadband take rates are rising and multichannel is fraying,” explained Neil Barbour, associate research analyst at S&P Global Market Intelligence. “The question is whether vendors can overcome challenges around tariffs, logistics and diverging broadcast standards to deliver affordable hardware.”
The S&P Global Market Intelligence analysis noted that global streaming media device (SMD) shipments fell nearly 10% in 2022 as rising levels of smart TV penetration, particularly in the US, eroded demand more quickly than expected.
However, global SMD shipments are expected to return to modest growth over the next five years as a new wave of hardware at lower prices presents an opportunity for user acquisition in emerging markets, driving a 2.8% compound annual growth rate to 83.8 million in 2027 from 73.0 million in 2022.
The study noted that there are substantive opportunities for growth in Asia-Pacific and Latin America as the latest round of affordable hardware reaches those markets and streaming video grows in accessibility and popularity.
