Home Theater Market size is expected to expand considerably over 2021-2027, owing to the rising disposable incomes of populations worldwide and the subsequent surge in demand for sophisticated entertainment solutions, alongside the rapid adoption of smart home technologies.
Home theater systems are a combination of several electronic components, that are designed to replicate the experience of a movie theater within the home. These systems comprise of many basic components, including a video display, an A/V receiver to recreate the surround sound effect and a video source, among others.
The growing prevalence of smart homes across the globe is a major factor contributing to market expansion during the forecast timeline. Smart homes are residences equipped with myriad connected devices, that can communicate with one another to deliver a more enhanced living experience. Studies suggest that nearly half of the millennial population in the United States is already making use of smart devices. This accelerated growth of compact and economical computing power, and extensive connectivity have led to a significant rise in demand for smart home products, including home theater systems, which can transform the entertainment ecosystem within the home.
Based on product, the sound bar is projected to emerge as a lucrative segment for the market by 2027, given its ability to seamlessly upgrade the user’s television audio, without the need for complex or time-consuming setup. Sound bars offer a multitude of advantages, including compact design, built-in audio features, superior sound quality and economical price points as compared to full-fledged home theater systems.
From a regional perspective, the Europe home theater market is anticipated to gain momentum during the forecast timeframe, led by the presence of strong players in the region, and their persistent efforts towards expanding their product portfolios with newer technologies designed to meet the evolving needs of tech-savvy consumers. For instance, in September 2020, Bowers & Wilkins celebrated the 25th anniversary of its flagship 600 Series loudspeakers, through the launch of a new range of Anniversary Edition products, including the 600 Series Anniversary Edition Theatre home cinema package, built on the company’s 607 S2, HTM6 S2 and 603 S2 Anniversary Edition speakers combined with the ASW610 subwoofer.
Key entities bolstering the global market outlook include, Sony, Bose, LG Electronics, Samsung Electronics and Panasonic, as well as other stakeholders such as Atlantic Technology, Definitive Technology, Sonos, Monitor Audio, Harman, Toshiba, Pioneer, GoldenEar Technology, Bowers & Wilkins, Sharp and Philips.
These companies are undertaking a number of different strategies to achieve an edge over rival entities in the global market, including acquisitions, expansions and new products launches, among others.
To illustrate, in October 2020, Sound United LLC, the parent company of Marantz, Definitive Technology, Denon, etc. announced its acquisition of Bowers & Wilkins, an industry leading producer and designer of headphones, custom installation products, branded audio and TV audio systems, and luxury home audio speaker systems, in an effort to build the strongest portfolio of premium audio brands in the industry.
Meanwhile, in April 2021, LG Electronics initiated the global rollout of its 2021 LG Soundbar product lineup, including new models designed to deliver superior audio experience, convenient control and versatility, as well as demonstrate more eco-consciousness with sustainable designs and packaging.
Since its expansion onto a global scale in early 2020, the ongoing COVID-19 pandemic has triggered changes across nearly every industry worldwide. The entertainment industry has witnessed a significant brunt of the impact, due to the widespread closure of production studios and movie theaters. According to reports, cinema attendance was almost 75% lower in 2020 than it was in the past year. Despite the devastating economic impact of the pandemic on many industries, these lockdown measures and closures opened lucrative avenues for the industry.
With strict social distancing measures put into effect, consumers shifted their focus towards in-home sources of entertainment, especially digital solutions like streaming video and video-on-demand. Online video subscribers worldwide grew by nearly 26% from 2019 to reach 1.1 billion in 2020. As a result of this surge in online media consumption, audiences are showing higher preference for immersive and better viewing experiences, thus pushing the demand for advanced home theater systems over the years ahead.