Audio & Video Equipment Manufacturing in Canada - Industry Market Research Report

Surround Sound: Industry Operators Will Likely Find It Difficult to Stay in Such a Competitive Market

A key ability that successful companies in this industry possess is the ability to adapt their business strategy to changing consumer and other market preferences. As a result, most manufacturers spend a significant amount of money on research and development initiatives. Audio and video manufacturers have faced volatile demand trends during the period. 2020 provided manufacturers with strong demand since extremely low-interest rates and rapidly rising housing starts led to increased downstream demand from new homeowners looking to outfit their property. This carried over into 2021 as rates remained low and housing starts remained high. As the Bank of Canada looked to reel in inflation rates in 2022, interest rates would increase as a result. Not only does this cut into housing start, but rising interest rates also slow down consumer spending and disposable income. As a result, demand took a tumble in 2022 and is expected to continue to fall through 2023. Volatile input prices also harmed operations during the period. The price and supply of semiconductors proved to be a massive roadblock throughout the period since these are the most critical input for audio and visual products. In line with several issues present during the period, audio and video equipment manufacturing revenue is expected to fall at a CAGR of 2.4% to $662.4 million over the five years to 2028, with a 5.9% decrease in 2023 alone, while profit will increase to 11.1%.

The Audio and Video Equipment Manufacturing industry in Canada comprises manufacturers of electronic audio and video equipment for home entertainment systems, vehicles and public areas. This industry excludes manufacturers of photographic equipment and telephone answering machines.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.