Home Audio Equipment Market Size By Price Range (Low [less than USD 500], Moderate [USD 500 - USD 1000], High [over USD 1000]), By Technology (Wired, Wireless), By Product (Speaker, Soundbar, Home Radio, Home Theater in a Box (HTIB), Receiver), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 - 2024
Home Audio Equipment Market is projected to exceed USD 20 billion by 2024. Rapid proliferation of IoT technology is expected to drive the industry growth, owing to the increasing focus of consumers to integrate modern music systems with the IoT-enabled smart homes. Growing usage of smartphone applications with these music devices to enable communication with the smart devices is anticipated to drive the home audio equipment market growth over the forecast timespan.
Technological advancements such as cloud-based personal music libraries in these devices has attracted young consumers, thus positively impacting the industry growth. Libraries such as Apple, Spotify, Deezer, Pandora, and Amazon Music are allowing the consumers to access a large number of music files available on the internet. Growing trend of consumers to play these files through in-house entertainment devices is expected to propel the home audio equipment market growth.
High-price (more than USD 1,000) segment is expected to grow rapidly over the next seven years, owing to the increasing demand for superior quality of the audio. The high-paying consumers from Europe and Middle East are demanding devices that provide high sound quality, in addition to aesthetic compatibility of the devices with the homes. However, with the proliferation of home entertainment systems in modern homes, the consumers are likely to prefer the home entertainment systems over the high-cost music devices. This is expected to impact the high-price home audio equipment market.
The audio device industry is experiencing behavioral shift among consumers with the penetration of devices such as tablets and smartphones. Consumers are demanding compact and wireless devices that focus on convenience and luxury. High degree of portability, remote accessibility, and manageability is expected to drive the wireless home audio equipment market.
The flourishing electronics industry in Asia Pacific is expected to positively impact the home audio equipment market growth. The presence of large number of players in the region enables the production of devices at low costs, thus gaining high consumer focus. Growing disposable income and increasing consumer spending on luxury devices is expected to provide growth opportunities in Asia Pacific, particularly in countries including India and China.
Growing number of smart homes in developed economies including the U.S., UK, and Germany is expected to bode well for the technologically advanced products in the home audio equipment market. The consumers in these regions are increasingly demanding technologically advanced products such as smart speakers that provide them with enhanced experience, thus propelling the industry growth.
The home audio equipment market is highly fragmented in nature, characterized by the presence of large number of global and regional players. Few players in the industry include AKG, LG Electronics, Acoustic Research, Philips, Bose Corporation, Klipsch Group, Bowers & Wilkins, Polk Audio, and Mark Levinson. These companies are increasing their sales using online retail, by selling the products directly or using third-party retailers such as Alibaba, eBay, and Amazon. The companies are focused on innovation and developing products enabled with advanced technologies such as digital personal assistants and multi-room technology. For instance, in 2015, Google launched Google cast, a streaming protocol service.