Connected TV market value to reach $290B by 2032 through AI adoption

The CTV landscape is pivoting from hardware commodity to ecosystem control. As OEMs integrate AI for personalized ad targeting and content discovery, the television becomes a high-margin data hub rather than a low-margin screen. This shift forces semiconductor manufacturers to increase the processing and AI acceleration capacity of per-device silicon. For the broader ecosystem, the convergence of display innovation and streaming economics means platform operators controlling the operating system (OS) will dictate the terms of digital advertising and home automation. Watch for higher semiconductor content per unit as AI-enhanced user interfaces become the standard for premium sets.

The strategic pivot toward operating systems (OS) is already yielding high-margin returns for leading manufacturers. Per Global News Top in January 2026, both Samsung and LG reported that their respective software businesses, Tizen and webOS, generated over $692 million each in annual revenue from advertising and content licensing. LG aims to add 100 million webOS-enabled devices to its ecosystem by late 2026, including integrations into automotive platforms for Hyundai and Kia. This expansion reflects an industry-wide push to offset stagnating hardware margins with stable, recurring digital revenue streams.

In the U.S. market, the battle for home-screen dominance has consolidated around retail and data-driven giants. Per Everything-PR, June 2026 reporting indicates that Walmart’s 2024 acquisition of Vizio has successfully merged shopper data with connected TV (CTV) inventory, allowing the retailer to close the loop between ad viewing and conversion. Meanwhile, the platform market remains in flux; Reuters reported in June 2026 that Roku is exploring a potential sale of the company as it seeks to maintain its 100 million-household reach against increased competition from Amazon and vertically integrated TV manufacturers.

Display technology is also bifurcating the market between high-volume LED sets and high-margin OLED units. According to Omdia data cited by KED Global, OLED screens are forecast to capture nearly 80% of China’s premium TV market (sets priced above $2,500) by 2025. This surge in premium demand is fueling localized production and driving down component costs for global markets. Furthermore, the release of the AV2 video codec in June 2026, offering 30% greater efficiency than AV1, is expected to further incentivize upgrades to AI-enabled hardware capable of handling next-generation, high-resolution streaming compression.