Home Audio Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Global Home Audio Market is expected to register a CAGR of 11.4% during the forecast period (2022-2027). The increasing number of offline distribution channels like departmental stores, hypermarkets & supermarkets, etc., is fueling the sale of home audio equipment.

Key Highlights

• Over the years, the home audio segment has evolved from the prominent, cumbersome speakers for powerful sound to the sleek and small designs that offer a high-quality sound for a complete cinematic experience. Streaming music at one’s fingertips proliferates, with true wireless audio taking a stand among the most popular trends.
• The most significant development is the democratization of home theatre brought by large-screen, affordable, high-definition television sets that display content in combination with super-high-quality audio. Consumers can now buy speakers that provide remarkably clear and powerful music and do so in extremely small packages.
• Also, easy access to immersive content, coupled with programming that elevates audio-visual systems to more powerful performance levels, is driving the demand for audio equipment. Home theatre industry prospects are improving due to innovations such as architecturally friendly Dolby Atmos systems, short-throw projectors, motorized window treatments, ambient light rejecting displays, etc.
• The market is also witnessing an uptick due to the growing popularity of wireless Home-Theater-In-A-Box (HTIB) systems. This can be attributed to their ability to be combined with TVs to provide a better audio experience. Several manufacturers are now producing audio systems at low prices due to technological refinements in Hi-res Audio, surround sound format, and audio clarity. The device eliminates the need for extensive wires flowing throughout the home and enables users to effortlessly link sub-woofers and secondary speakers. The HBIT receiver provides a low-frequency signal to the sub-woofer, and its built-in amplifier produces sufficient power to produce audible sound.
• Additionally, the home audio segment has witnessed robust growth in demand due to the COVID-19 pandemic in the recent past. The pandemic created a new norm of operating from home. Consumers spend more time on entertainment, personal fitness, and wellness through online resources, which has heightened the need for home audio products like Soundbars, Headphones, and Bluetooth speakers. To serve the trend, companies aim to address consumer needs by launching premium yet affordable tech devices like the Philips TAPB603 Dolby Atmos Soundbar, making the overall high fidelity audio category more accessible.

Key Market Trends

Sound bars Segment is Expected to Hold a Significant Market Share

• The shift in the consumption of media from offline to online has contributed significantly to the growth in demand for soundbars. The increasing penetration of subscription-based platforms like Hotstar, Netflix, Amazon Prime, etc., complement the soundbar market's development as they are slightly cheaper than extensive home cinema systems, offer enhanced sound quality to the users, and are compact.
• The market is also driven by the integration of voice assistance technology in the soundbar. For instance, in September 2021, Bose announced the new Smart Soundbar 900, a Dolby Atmos speaker that delivers deep immersion for music and movies. With proprietary Bose spatial technologies, the 900 elevates Dolby Atmos content by separating instruments, dialogue, and effects and then places them in discrete parts of a room, far above and to the far right and left. Featuring HDMI eARC, the Soundbar connects to a TV with a single cable and packs all its technology in a single enclosure. It features Wi-Fi and Bluetooth along with Google Assistant and Amazon Alexa for voice control and a simple app for touch control. It is compatible with Airplay 2, Spotify Connect, and other Bose smart speakers for a premium audio multi-room system.
• The increasing investments in research and development by several companies also aid the expansion of the studied market by facilitating innovations and upgrades. For instance, in January 2022, Sony Electronics Inc. announced the HT-S400 2.1ch soundbar, fetching cinematic surround sound to any living room. The HT-S400 delivers a powerful audio experience due to its S-Force PRO Front Surround technology, clear dialogue features, and powerful 330W total power output. The HT-S400 facilitates users to hear sound from all around thanks to high-quality Dolby Digital with Sony's virtual surround sound technology S-Force PRO Front Surround.
• In May 2022, Sonos, the wireless home-audio specialist, announced that it is set to launch a lower-cost model of its popular TV soundbars alongside its new voice control system for its smart speakers after its public bust-up with Google. The new Ray soundbar is a compact version of Sonos's popular Arc and Beam models, designed to fit neatly in TV stands without affecting sound quality. It connects to a TV through an optical cable, has Wi-Fi for streaming music, and can be controlled with the Sonos app or a TV remote.
• However, rising restrictions on the radiofrequency spectrum by wireless audio equipment and increasing health problems resulting from prolonged use of audio devices are the significant factors that obstruct the market's growth. Additionally, coding delays and bit errors in audio quality would further challenge the development of the soundbar market in the forecast period.

Asia Pacific is Expected to be the Fastest Growing Market

• Asia-Pacific is expected to capture a significant market share due to the increasing technological innovation, presence of some of the leading audio equipment providers, like Sony Corporation, Samsung Electronics, Alpine Electronics, and rapid industrialization, which have led to a steady stream of new audio equipment. Streaming and device networking are the two emerging trends in the Asia Pacific Home Audio System Market.
• Further, due to the high deployment of smart home gadgets in several houses in the region, the need for smart speakers, TVs, and plug-ins has increased significantly, which is boosting the growth of the studied market. For instance, the sales of smart devices increased by 90.5% year on year; sales of smart wearables such as watches and smart glasses increased by 36.3% and 26.8% year-on-year, respectively, according to Ministry of Commerce statistics for 2021
• In line with this, China's intensified efforts to boost the consumption of green and smart home appliances and replace old home appliances are expected to stimulate the purchasing power of consumers, shore up economic growth, and foster high-quality and sustainable development.
• Also, the increasing adoption of E-Commerce platforms and online distribution channels are propelling the growth of the studied market in the region. For instance, according to Edge by Ascential, the Asia Pacific region e-commerce comprised nearly half of the retail sales in 2020, making it the leading region. E-commerce share of retail in North America and Europe followed Asia-Pacific with 20% and 16% in 2020, respectively. The share of e-commerce in retail sales in the Asia Pacific is expected to grow by 10% by 2025, reaching 61%, the largest expected increase among other regions.
• Moreover, the region is expected to witness continuous growth due to the launch of comprehensive product portfolios and the development of innovative products. For instance, in May 2022, WiSA LLC, a subsidiary of WiSA Technologies, Inc., announced that Wharefedale's Opal Wireless Home Theater Speaker System has earned WiSA HT Interoperability Certification and commenced sales in China. The system features touch controls and Dolby Digital, Dolby Digital Plus, and Dolby Digital TrueHD decoding.

Competitive Landscape

The Global Home Audio Market is a highly fragmented and competitive market with the presence of several prominent players like Sony Corporation, Sonos, Inc., Bose Corporation, Panasonic Corporation, etc. The players in the market are striving to expand their market share through various collaborations, innovations, or enhancing their distribution channels.

• July 2021 - Sonos, the premium audio brand, has forayed into India to expand its portfolio globally. The California-based home audio brand has partnered with Luxury Personified, a subsidiary of The Sun Group, to offer its wireless home audio speaker range to the Indian market. Through this partnership, Sonos would be able to officially sell and service its products in India, putting a curb on sales through third-party platforms.
• July 2021 - Sony Electronics Inc. introduced the premium HT-A9 home theater system and flagship HT-A7000 soundbar, delivering an advanced multidimensional sound experience. It enables users to feel the action happening above and from every corner of the living room with innovative surround sound technologies that create an immersive home theater and soundscape experience for any music, film, or gaming content.
• May 2021 - Apple announced that Apple Music is set to launch advanced sound quality to its subscribers with the addition of Spatial Audio with support for Dolby Atmos. Spatial Audio gives artists the chance to create immersive audio experiences with authentic multidimensional sound and clarity for their fans. Apple Music subscribers would also be able to listen to more than 75 million songs in Lossless Audio. These new features will be available for Apple Music subscribers starting next month at no additional cost.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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