Home Audio Equipment Market - Forecasts from 2023 to 2028

The home audio equipment market is projected to grow at a CAGR of 7.17% over the forecast period, increasing from US$21.868 billion in 2021 to reach US$35.501 billion by 2028.

Due to rising disposable incomes, consumer demand for high-performance home theater experiences is expected to fuel market growth. Further, it is anticipated that a decrease in the emphasis placed by manufacturers on the integrated audio quality of televisions will raise demand for external audio solutions and accelerate market expansion. Additionally, businesses in the consumer electronics sector have been propelling market expansion by releasing AI-enabled products. For instance, Sensory announced the integration of ChatGPT and other Artificial Intelligence (AI) into its consumer devices in April 2023 to drive conversational voice answers. 

Moreover, high-end electronic devices from premium device makers like Samsung Electronics and Apple Inc. are anticipated to see an increase in demand during the forecast period, particularly in developed nations like the U.S., Canada, the UK, and Germany.

Rising technological advancements

The market's expansion can be ascribed to the integration of diverse digital technologies in consumer electronics and significant expenditures made by manufacturers who prioritize providing customers with superior experiences. The trend of cutting back on electronics is quickly gaining traction worldwide. Lightweight and portable electronics are growing in popularity with customers for smart homes. The global market for electronics for home audio equipment is growing because of the adoption of compact electric varieties.

The increased technological advancement has also increased the sales of home theatres and soundbars which has resulted in the increase in revenue of major home audio equipment providers, for instance, as per the 2022 annual report of LG Electronics, the revenue increased from 26,457,449 million of Korean won in 2021 to 27,045,777 million of Korean won in 2022.

Moreover, due to their lower cost and easy usage, hi-fi wireless soundbars use ambisound technology which has become more popular. To improve the entertainment experience, makers of home entertainment equipment are focusing their efforts on providing connected items through smart technologies like smart speakers and home assistance. It has been demonstrated that these devices, through voice control automation, improve the sound quality of movies and TV shows.

North America is predicted to hold the largest market share for the market

Numerous important reasons are driving the home audio equipment industry in North America. Customers are looking for audio systems that fit in well with their smart homes due to the growing need for linked and smart devices. Furthermore, consumers are upgrading their audio systems as a result of continuous improvements in audio technologies, such as immersive sound formats and high-resolution audio.

The home audio equipment industry in the United States is expanding rapidly due to several important factors. The growing popularity of smart home technologies is creating a need for audio solutions that fit in well with networked environments. The need for devices that support high-resolution audio formats is being driven by consumers' preference for high-quality audio experiences.

Furthermore, a large number of people are spending more money on home entertainment and using streaming services, which is driving up demand for audio equipment that makes watching content more immersive. For instance, as per the BLS, entertainment spending climbed by 22.7 percent in 2021. Spending on entertainment increased by 15.5 percent in 2021 compared to 2019 levels. This was caused by a 60.6 percent increase in 2021 spending on other amusement supplies, machinery, and services, which includes the buying and leasing of recreational vehicles with and without motors. After fees and admissions, which increased by 53.9 percent, toys, hobbies, and playground equipment saw a 17.1 percent increase. 

Market Key Developments

• In November 2020, Microsoft's Xbox One video game console will support DTS:X Home Theater with the availability of DTS Sound Unbound, an audio application that grants access to premium DTS audio capabilities and features. This announcement was made by Digital Theater Systems (DTS) Inc., a wholly owned subsidiary of XPERI INC. The business also intended to provide compatibility with the Xbox Series S and Xbox Series X .In March 2023,
• In August 2022, JBL introduced the feature-rich JBL Bar 1000 for customers to experience 3D surround sound with the most recent soundbar models. With four up-firing drivers, the 7.1.4 channel JBL Bar 1000 creates a completely wire-free home theatre experience that surrounds Dolby Atmos® and DTS:X 3D surround sound. The JBL Bar 1000 is the centerpiece of the brand-new JBL Bar Series, which is completed by the JBL Bar 300, 500, and 800.
• In January 2023, the HomePod (2nd generation), a potent smart speaker with cutting-edge acoustics and a stunning, iconic appearance, was unveiled by Apple. With its advanced computational audio capabilities and support for immersive Spatial Audio tracks, HomePod is a new listening experience that combines Apple innovations and Siri intelligence. Users can establish smart home automation using Siri, receive alerts when a smoke or carbon monoxide alarm is detected in their house, and check the temperature and humidity in a room all without using their hands to handy new ways to handle daily tasks and control the smart home.

Segmentation:

By Product Type

• Blu-ray and DVD players
• Home Theatres
• Soundbars

By Distribution Channel

• Online
• Offline

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others