The home audio equipment market is estimated to expand at a substantial rate on the back of robust demand for advanced audio-visual equipment and solutions. Increasing worldwide popularity of video-on-demand services has led consumers to desire high-quality audio-visual equipment. More people are subscribing to services like Netflix and Amazon Prime, which is anticipated to fuel the demand for home audio equipment such as home theatres and soundbars.
Wireless communication technologies and wireless-connected audio devices are witnessing substantial heightened demand as they can be easily connected to other systems without the use of wired cable links. Voice-based assistant systems are also finding more popularity. The rising use of smart speakers in developing and developed nations alike is expected to boost the industry outlook.
Essentially, firms operating in the home audio equipment market are working on integrating advanced technologies like Bluetooth and AI connectivity into the systems and are launching interesting solutions. For example, in 2020 Philips announced the launch of three new party speakers and six new soundbars having enhanced features. Given such developments, a recent Global Market Insights survey reports that the home audio equipment market is expected to grow over US$45 billion by 2027.
These are the key drivers in the market’s expansion:
A high demand for smart speakers
There is a surge in demand for AI technology-based speakers across the globe. Many companies are offering smart speakers which let users play music, make restaurant reservations and turn on lights. Smart speakers are integrated with deep learning technology which identifies sound patterns and other data, hence making the interface user-friendly. The adoption of voice recognition technology in speakers enables people to use their voice to give commands to the system. The technology recognises the user’s voice via natural language processing and performs tasks.
Increasing usage of video-on-demand services in North America
North America is experiencing rising popularity of video-on-demand services. Companies like The Walt Disney Company, Netflix and Hulu are emerging as dominant players in the video-on-demand industry. People are opting for high-end home theatre systems that enable them to enjoy a better viewing experience at home. Meanwhile, soundbars are allowing higher quality audio delivery and in turn, enhancing the audiovisual experience. The growing number of people watching on-demand content is likely to drive the regional market share.
The growing adoption of online retailing
E-commerce players such as eBay and Amazon are now offering an ever-expanding range of products on their portals. The pandemic has given a boost to online retailing as consumers prefer to buy products online allowing greater social distancing. Furthermore, various offers and discounts given by e-commerce firms accelerate growth here. Easy product replacement policies have also propelled online retailing in recent years, as well as the availability of high quality, advanced home audio products.