The biggest growth story in the consumer electronics industry for the next year or two will be Internet-enabled TVs, and not 3DTVs, according to a new report from iSuppli.

Although industry headlines have been dominated by 3DTV news this year, global shipments of Internet-enabled TVs (IETVs) will reach 27.7mn units this year, compared to only 4.2mn units for 3DTVs.  Shipments of 3DTVs are however set to soar in the coming years, the report adds.

“Despite aggressive promotions from the industry and intense consumer interest generated by the blockbuster Avatar and other titles, the 3DTV market in 2010 will be limited to a small pool of enthusiastic early adopters,” said Riddhi Patel, Director and Principal Analyst for television systems at iSuppli.  “In contrast, IETV is entering the mainstream in 2010.  This is because 3D is still dealing with a number of barriers, including cost, content availability and interoperability, while IETV provides immediate benefits by allowing TV viewers to access a range of content readily available on the Internet.”

Shipments of IETVs reached 12.3mn units in 2009, meaning that if they reach the predicted total of 27.7mn units shipped this year, they will enjoy a growth of 124.9% from last year.  "Significant" growth is expected to continue during the following years, at more than 50% per year for the next two years, and will then continue to increase at solid double-digit rates until the end of 2014.  By then, global IETV shipments are expected to reach 148.3mn units, accounting for 54% of the total flat-panel TV market.

“The arrival of Internet-enabled TV models is part of the ongoing evolution and enhancement of TV sets,” added Mr. Patel.  “Because innovation is a must in order to drive consumer adoption and replacement, the TV industry has embarked on a path of enhancing the consumer experience through interaction with their TV sets.”

In terms of geographical regions, North America and Western Europe are expected to make up the largest markets for IETVs between 2010 and 2014.  Japan will lay claim as the third-largest market only until 2012, after when it will drop to fifth place, ranking behind China and the collective area designated as Rest of Asia-Pacific.

IETVs are also expected to represent a strong growth opportunity for a number of component types in the TV semiconductor space, including multi-format decoders, DRAM and interface Integrated Circuits, according to iSuppli.  Combined revenue from sales of these semiconductors are projected to reach more than US$ 2bn by 2014, up from just US$ 222mn in 2009.