Home Audio Equipment Market worth over $45bn by 2027
Published Date: February 23, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Home Audio Equipment Market size is set to surpass USD 45 billion by 2027, according to a new research report by Global Market Insights, Inc.
Growing popularity of voice assistant-based soundbars will boost the market growth. Advancements in Artificial Intelligence (AI) technologies are a key factor driving voice assistant-based soundbars. Market players are focusing on leveraging the benefits of AI technology to offer smart voice assistant-based soundbars. Virtual digital assistants, such as Alexa, Siri, Cortana, and Google Home, use AI to sort videos for the users according to the watch history and respond to voice commands. Voice assistants incorporated in soundbars help in providing hands-free usage and enhancing the audio-visual experience. Digitalization is supporting the integration of smart TVs with soundbars to provide an enhanced home theater experience with voice assistants, fueling the market expansion.
The ongoing coronavirus (COVID-19) pandemic had negatively impacted the home audio equipment market demand. Several government organizations imposed lockdown measures to ensure social distancing. This caused disruptions in the global supply chains. Companies with geographically dispersed manufacturing facilities and sales offices faced difficulties in the procurement of raw materials. Manufacturers also faced difficulties in international shipments. This hindered the industry demand in 2020. However, industries have resumed operations post the lockdown, which will positively impact the market value. The industry will regain traction in 2021 with the overall economic conditions gaining stability.
Increasing demand for wireless Home Theater in a Box (HTiB) systems for enhanced audio-visual experience will propel the market revenue
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The wireless HTiB segment is projected to witness 12% growth rate till 2027 led by the high demand for wireless HTiB systems from developed economies. Although high-end home audio equipment is costly, rising disposable incomes in the developed countries of North America and Europe will augment the adoption of HTiBs. These units form a compact, integrated system that iseasy to install. Being an integrated system, it eliminates the need to connect wires for every single audio equipment. HTiBs are available in both wired and wireless types. There is a rise demand for wireless HTiBs from the expanding smart home industry. Growing popularity of OTT services, such as Amazon Prime and Netflix, have encouraged users to adopt high-performance home audio equipment for the improved audio-visual experience. The developing video-on-demand market will drive the demand for home audio equipment, in turn, impelling the industry growth.
Browse key industry insights spread across 400 pages with 468 market data tables and 33 figures & charts from the report, “Home Audio Equipment Market Size By Technology (Wired [Speaker, Receiver, Soundbar, Home Theater In a Box (HTIB)], Wireless [Speaker, Receiver, Soundbar, Home Radio, Home Theater In a Box (HTIB)]), By Distribution Channel (Online, Offline), Industry Analysis Report, Regional Outlook, Price Trend Analysis, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Several consumers prefer to buy home audio equipment from offline stores to ensure product reliability
The market will showcase growth with increasing demand for high-quality audio-visual devices across developing and developed economies. Although online retailing has gained traction over recent years, several consumers still prefer to buy home audio equipment from offline stores. A rise in the number of counterfeit product sales in online shopping is discouraging several consumers from buying home audio equipment through e-commerce sites. Moreover, consumers can take the advice of sales personnel in stores to help them choose the best-suited product. Consumers are also assured of the product quality and authenticity while buying home audio equipment from proprietary stores. New mall construction projects are encouraging people to buy high-end products from offline stores, fostering the market expansion.
Growing popularity of smart homes will create growth opportunity for the European region
Europe home audio equipment market is anticipated to expand at 9% CAGR through 2027 on account of the high acceptance of smart devices mainly in the UK, Germany, and France. Consumer preferences are changing, and they are increasingly accessing content on connected audio devices. The rising consumer spending on smart homes in Europe is adding up to the demand for connected home audio systems. The demand for multi-room devices is increasing in the UK and Germany due to their ability to play the same music in multiple rooms of the home. Additionally, these systems also allow users to play separate music in multiple rooms at the same time. The presence of several audio equipment manufacturers, such as Sennheiser Electronic GmbH & Co. KG, Bowers & Wilkins, and Blaupunkt GmbH in Europe, is leading toward the regional expansion.
Increasing competition among players to offer innovative solutions will influence the market revenue
Companies are offering a wide range of innovative products to attract a large customer base. Several technology partners are offering products at low prices and partnering with online retailers. The product launch strategy is helping vendors to enter and capture untapped markets. For instance, in October 2020, Apple Inc. launched Homepod Mini that offers an improved music listening experience, smart assistant, and smart home capabilities with built-in security & privacy in a compact design. Increasing competition among market leaders to launch advanced solutions will drive the industry value.
Key participants operating in the home audio equipment market include Apple, Inc., Sony Corporation, Amazon.com, Inc., Bose Corporation, Panasonic Corporation, Samsung Electronics Co., Ltd., Voxx International Corporation, Vizio, Inc., Polk Audio, LG Electronics, Inc., Google LLC (Alphabet Inc.), and JVCKenwood Corporation.