More than 100 million households in the world will have Ultra HD TVs equipped with the High Dynamic Range technology in five years, a U.S.-based industry tracker said Friday.

A total of 107 million households with over 250 million viewers will watch shows on TVs using the latest technology, HDR, according to the Strategy Analytics.

The HDR technology allows screens to deliver vivid displays by optimizing brightness depending on colors, boasting improved quality compared with previous Ultra HD TVs.

Strategy Analytics further forecast that the penetration of HDR TVs will reach nearly 25 percent of homes in the United States by 2020.

"TV manufacturers like Samsung Electronics Co. and LG Electronics Inc. are keen to maximize the revenue potential of this new technology," said David Watkins, director at Strategy Analytics.

He further said that HDR can make a noticeable difference for most viewers so there is an opportunity to accelerate the TV upgrade cycle.

Samsung Electronics, which released SUHD TV models earlier this year that adopted the HDR technology, is bolstering partnerships with major European content providers to make inroads into the emerging market.

Italy's Chily and Germany's Videoland already launched UHD service last year, while the Netherlands' Insight, the Ultra HD channel, and Spain's RTVE are set to adopt HDR service later this year.

"European consumers will be able to enjoy every service with Samsung's SUHD TV and UHD TVs equipped with the best HDR technology," the company said.

HDR service has already been launched by online video services in the U.S by video providers such as Netflix Inc.

Samsung's local rival LG Electronics, which also rolled out the HRD-equipped models last year, partnered with a number of high-profile broadcasters and content providers based in Europe.

At the IFA 2016 stand in Berlin earlier this year, LG demonstrated HDR technology combining High Frame Rate with HLG content for the first time in the world.

LG teamed up with the ASTRA's satellite network and the British Broadcasting Corporation broadcasting system at the event. (Yonhap)