Home Audio Equipment Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2023-2027

Home Audio Equipment Market Forecast 2023-2027 

The home audio equipment market size is estimated to increase by USD 15.49 billion at a CAGR of 11.33% between 2022 and 2027. The rapid adoption of smart home devices is leading to an increased demand for smart TVs as consumers seek to integrate their entertainment systems into their smart home ecosystems. The growth of smart homes, with interconnected devices and systems, is further fueling the demand for smart TVs, which can serve as central hubs for entertainment and home automation. Overall, these factors are driving the growth of the market and shaping the future of home entertainment.

What will be the Size of the Market During the Forecast Period?

To learn more about this report, View Report Sample

Market Segmentation

This market report extensively covers market segmentation by type (smart speakers, home theater systems, and sound bars), distribution channel (offline and online), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Type

The market share growth by the smart speakers segment will be significant during the forecast period. A smart speaker is a wireless, voice-controlled speaker that uses Wi-Fi and Bluetooth. The rising number of smart homes and convenient use and ease of use with the help of smartphones and laptops are expected to drive high growth in the segment during the forecast period. The most popular smart speakers are Amazon Echo, Google Home, and Apple Home Pod. Smart speakers easily connect to smartphones and tablets and feature a host of features divided into home control, gaming and fun, and productivity. These features also include basic weather forecasts, news updates, read-aloud, and other features that make this product a viable purchase for consumers. These smart speakers offer streaming options.

Get a glance at the market contribution of various segments View the PDF Sample

The smart speakers segment was valued at USD 6.43 billion in 2017. Smart speaker users can play music directly from this device without having to download and play songs. Amazon Alexa is one of the popular smart speakers for its music streaming compatibility. With increasing innovation in smart speakers, this segment is expected to grow during the forecast period. Amazon Alexa's numerous smart home integrations and the Apple Home Kit initiative are likely to boost the growth of the market. Rising disposable income and people's purchasing power are other important factors driving the market. Therefore, the smart speaker segment is expected to drive the growth of the market during the forecast period.  

By Region

For more insights on the market share of various regions Download PDF Sample now!

North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The home audio market in the North American region is mature. The region is one of the early adopters of audio technology. The high disposable income of the population and the presence of several established providers contribute to the growth of the market in this region. Studio executives and exhibitors have indicated their willingness to release the film at home within weeks of its theatrical debut for USD 30 to USD 50 per rental. These programs are aimed at consumers who prefer the freedom to watch newly released movies for minimal fees with a home audio device in their home. Almost half of the US and Canadian populations are occasional moviegoers (less than once a month). Growing interest and passion for live shows and sporting events such as the Super Bowl and the National Basketball Association (NBA) have increased the demand for soundbars that provide stadium-like audio experience. However, the market in this region is expected to grow slowly during the forecast period due to its early adoption of this technology. It is expected to reach saturation during the forecast period with a minimal increase in annual growth rate.

Market Dynamics and Customer Landscape

The Market is experiencing robust growth driven by several key factors. Ambisound technology, Dolby's Atmos, and DTS:X Home Theater support are revolutionizing experiences and enhancing immersion and realism for consumers. The increasing penetration of Android smartphones and Apple iPhones, particularly in the Asia Pacific region, fuels demand for audio equipment compatible with these devices, amplifying market growth. Additionally, the rising consumer spending power and demand for consumer electronics, coupled with advancements in artificial intelligence and conversational voice responses, are driving the adoption of innovative audio solutions. Moreover, the trend towards domestic manufacturing and the downsizing of electronic items further accelerates market expansion, fostering ease of use and accessibility for consumers. Overall, these drivers and trends indicate a promising outlook for the market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rapid adoption of home audio equipment is driven by several key factors. Firstly, consumers are increasingly prioritizing higher quality products and have greater disposable income, leading to increased demand for home entertainment products. Additionally, the proliferation of high-speed data streaming and online entertainment platforms, coupled with rising incomes, is fueling market growth, particularly in developing countries. Furthermore, significant reductions in manufacturing costs of devices, along with the growing demand for immersive audiovisual experiences, are contributing to the expansion of the market.

Moreover, the rising adoption rate of smart home technology and increasing internet penetration are driving market growth by enhancing connectivity and accessibility to audio equipment. The lifestyle changes induced by the pandemic, especially among Gen Z and millennials, have led to increased investments in indoor entertainment systems, further boosting market demand. Integration of advanced technologies such as Spatial Studio, Networked Audio, and Sonar is expected to make audio equipment more affordable and accessible, catering to evolving consumer preferences and driving widespread adoption globally. These factors collectively contribute to the positive growth outlook for the market in the forecast period.

Significant Market Trends

Development in audio devices is a key trend influencing the market growth. Recently, Boat's parent company, Imagine Marketing, teamed up with electronics manufacturer Dixon Technologies to form a 50/50 joint venture to manufacture Bluetooth-enabled devices. In India, a potential joint venture will design and manufacture wireless audio solutions. Also, Australian audio equipment manufacturer Rode announced the opening of an all-new division dedicated to streaming and gaming. The company's first sub-brand, Rode X, has its own R&D department. The product line includes the XDM-100 USB dynamic microphone, the XCM-50 USB condenser microphone, and Unify, a virtual mixing solution designed specifically for streaming.

Manufacturers produce state-of-the-art systems. Improvements in wireless technology offer convenience, convenience, and high-fidelity sound, especially when accessing online streaming content powered by Alexa and Google. This allows customers to use high-tech products, and many companies gradually sell their products, increasing sales and allowing companies to make profits. Therefore, these trends are expected to boost the growth of the market during the forecast period.  

Major Market Challenge

The availability of counterfeit products is challenging the market growth. The easy availability of counterfeit products in the market will pose a major challenge during the forecast period. Unlicensed dealers often sell counterfeit or imitation products of well-known brands such as Sony, JBL, and SAMSUNG. Several companies offer tutorials and blog posts on identifying counterfeit products that are readily available on the market. Counterfeiting affects the original idea and the vendor's ability to profit from the licensed product. Lack of awareness among many rural residents and poor internet facilities are major obstacles to the widespread adoption of the systems.

The full impact of this conflict is still not fully understood, making it an ongoing tragedy of greater magnitude. These factors have impacted home audio devices across the globe and are expected to adversely affect the market during the forecast period.  

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Home Audio Equipment Market Companies?

Market players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alphabet Inc: The company offers different types of home audio equipment, such as Nest speakers. It also provides different types of products and services, such as Google Ads, Android, Google Play, Google Maps, and YouTube.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Amazon.com Inc.
• Apple Inc.
• Bose Corp.
• Boston Acoustics Inc.
• Dolby Laboratories Inc.
• Edifier International Ltd.
• HP Inc.
• JVCKENWOOD Corp.
• Koninklijke Philips NV
• LG Corp.
• Masimo Corp.
• Panasonic Holdings Corp.
• Samsung Electronics Co. Ltd.
• Sharp Corp.
• Sonos Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Smart speakers
  • Home theater system
  • Sound bars

• Distribution Channel Outlook
  • Offline
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by advancements in technology and consumer demand for high-quality audio experiences. Key technologies such as Advanced Audio Coding (AAC), Dolby's Atmos, and DTS:X Home Theater compatibility are enhancing audio playback and creating immersive home theater experiences. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) capabilities is revolutionizing audio processing and control, enabling features like conversational voice responses and voice-controlled assistants. The market is also influenced by factors such as the rise of e-commerce sites, the Internet of Things (IoT), and the availability of wireless connection options, catering to the demand for convenience and smart home connectivity. As consumer spending power increases and awareness of high-resolution audio formats grows, the market is poised for continued expansion and innovation.

Moreover, the market is thriving with innovation and demand for high-quality audio experiences. Cutting-edge technologies like AI-integrated devices, Dolby's Atmos, and DTS:X Home Theater support are enhancing audio quality and creating immersive environments. Consumers in developed countries and the Asia Pacific region are driving demand for premium devices like hi-fi wireless sound bars and surround sound systems. The market also sees growth in wireless speakers and multi-room functionality, catering to the trend of smart home technologies. Amid supply chain disruptions and semiconductor shortages, manufacturers focus on domestic manufacturing and research & development to meet the demand for realistic home audio equipment.

In the dynamic market, cutting-edge technologies like Ambisound and aptX are enhancing audio quality and consumer experiences. With the rise of Android smartphones and Apple iPhones, consumers seek seamless integration with their devices. Audio amplifiers and Bluetooth technology offer flexibility in audio setups, while brick-and-mortar retail businesses continue to play a crucial role in product distribution. Built-in audio quality remains a key consideration for consumers, driving innovation and competition among manufacturers in this thriving industry.

Market Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.33%
Market growth 2023-2027	USD 15.49 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.14
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 34%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., Amazon.com Inc., Apple Inc., Bose Corp., Boston Acoustics Inc., Dolby Laboratories Inc., Edifier International Ltd., HP Inc., JVCKENWOOD Corp., Koninklijke Philips NV, LG Corp., Masimo Corp., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Sharp Corp., Sonos Inc., VIZIO Holding Corp., VOXX International Corp., Yamaha Corp., and Sony Group Corp.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

View the PDF sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch