European TV market stabilises as 40-inch sales accelerate

The European television market is showing early signs of stabilisation following years of contraction, even as revenue continues to decline at a double-digit rate.

Recent analysis from CONTEXT indicates that television sales volumes in the third quarter of 2025 are nearing break-even levels, suggesting that the darkest period for the sector may have passed.

The television industry experienced strong demand during the COVID-19 pandemic, as consumers enhanced their home entertainment systems amidst increased media consumption and gaming. Subsequent refresh cycles during 2024 were buoyed by major sporting events, namely the UEFA European Football Championships and the Olympic and Paralympic Games.

According to Aaron Smith, Senior Analyst at CONTEXT, price competition and the impact of Chinese brands and panel manufacturers have continued to create challenging conditions in the market. However, Smith points to stabilising volumes as a notable shift.

"Although the market is still under pressure from aggressive price competition and challenges posed by Chinese brands and panel producers, the fact that volumes are levelling out after years of contraction is an important signal," said Aaron Smith, Senior Analyst at CONTEXT. "It suggests we may be entering a phase of stabilisation after a turbulent period."

Detailed analysis of screen size trends has revealed divergent paths for different categories across Europe. Larger screen sizes, especially 55-inch sets, tend to be promoted in the latter half of the year during Q3 and Q4. In contrast, demand for smaller screens generally continues to fall, with one significant exception.

The 40-inch television segment has rapidly gained traction with consumers, growing 43% in the third quarter and 18% in early Q3 2025. The share of 40-inch TVs is now approaching 10% of the overall market.

This growth in the 40-inch category has emerged largely at the expense of the 43-inch segment. The appeal of 40-inch sets appears to rest on pricing dynamics. Although they cost only slightly more than 32-inch models, they are considerably cheaper than 43-inch alternatives, attracting cost-conscious buyers.

"40-inch TVs are hitting a sweet spot in terms of value," added Aaron. "Consumers see them as a cost-effective upgrade, better than 32-inch but without the premium of a 43-inch model. That's why we're seeing such strong momentum in this size."

Country-level data shows that most national markets continue to struggle; however, the United Kingdom, Nordic countries, and the Netherlands are recording sales growth. Analysts note that this positive trend is not driven solely by a specific screen size, refresh rate, or technological feature. Instead, these countries appear to be experiencing delayed refresh cycles relative to other European markets.

The improvement in the UK and Nordic TV markets is particularly significant, given the broader weakness in technology sectors witnessed there during 2023 and 2024. CONTEXT's analysis suggests that these early signs of growth in 2025 may indicate a wider recovery in consumer electronics.

"Growth in the UK and Nordics is encouraging because it signals more than a one-off trend," concluded Aaron Smith. "It suggests these markets are finally entering a recovery phase, which could contribute to stabilising the European TV market overall."

The findings highlight the combined impact of consumer purchasing patterns, competitive pricing, and external events on the television sector's performance across Europe. As retailers and manufacturers navigate the ongoing challenges and shifting preferences, the prospect of market stabilisation remains a closely watched development.