Market Trends of Global Audio Devices and Components Industry
This section covers the major market trends shaping the Audio Devices & Components Market according to our research experts:
The Home Audio Segment is Expected to Drive the Market Growth
- Wireless speakers, used for playing music or other forms of audio files through certain connectivity technologies, are gaining increasing popularity in recent years. The growing investment in the smart home segment, increasing preference for portable speakers, and increasing product innovations in the wireless speaker segment are some of the major factors driving the adoption of these devices.
- For instance, in January 2022, Sony launched two new wireless neckband speakers in India; Sony SRS-NB10 and Sony SRS-NS7. These wireless speakers allow users to take conference calls and listen to music while walking freely.
- Wireless speakers are mostly Bluetooth or WiFi-enabled. WiFi speakers connect to the home network and run on AC power. Bluetooth speakers pair directly with a device such as a phone or a laptop. They tend to be compact and battery-powered, which makes them more portable. Although Bluetooth speakers account for a significant market share in many regions, the trend is mainly shifting towards WiFi speakers.
- Many established market players, including Amazon, Apple, and Google, are investing significantly in the wireless technology associated with these speakers. The growing development of smart homes is likely to create new market opportunities for this segment in the coming years.
- Soundbars are also gaining increasing popularity in the home audio segment due to their ability to stream audio content wirelessly. A soundbar is a slim, oblong-shaped device with several individual speakers placed side by side. It can be mounted on a computer monitor, TV, home theatre, and other similar devices.
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North America is Expected to Hold a Major Market Share
- The North American market is a massive loudspeaker and is expected to grow. According to the Consumer Technology Association, the market size of the Home Theater system in the USA in 2020 was USD 87 million, while that of wireless speakers was estimated to be USD 5,975 million. Other speakers such as compact speakers and speaker components are expected to grow significantly. The revenue from smart speaker and stereo speaker systems is also likely to increase multifold and is expected to reach a multi-million-dollar business by 2024.
- Further, Smart speakers have emerged as the fastest-growing product in the smart home technology arena in recent years. Several companies are investing in smart speaker wireless technology or developing wireless multi-room audio streaming systems. According to Voicebot.ai, The number of smart speakers on the market in the United States has increased from 47.3 million in 2018 to over 91 million in 2021. The installed base of smart speakers is expected to increase to around 95 million units by 2022.
- Increased demand for infotainment devices such as smartphones, laptops, PCs, and soundbars and benefits associated with wireless audio devices such as portability, remote accessibility, and interoperability with most infotainment devices are driving demand in North America. Furthermore, the rising technological dissemination of wireless audio products for various applications such as consumer, business, and automotive are a few factors driving the usage of wireless audio devices.
- In April 2022, Bose, a united states-based company, unveiled the Smart Soundbar 900, a Dolby Atmos speaker that delivers unrivaled immersion for music and movies. The Soundbar 900 enriches Dolby Atmos material by isolating instruments, dialogue, and effects and placing them in discrete space regions-far above, far right, and left - using unique Bose spatial technologies. It also enriches non-Dolby Atmos content by giving the same experience regardless of what you're listening to or watching. The Soundbar 900 uses HDMI eARC to connect to a TV with just one wire and houses all of its technology in a beautiful single container. It has Wi-Fi and Bluetooth for the best of both worlds and voice control from Google Assistant and Amazon Alexa.
- Moreover, developing smart speakers that integrate with home entertainment systems is expected to drive the need to install newer home speaker models. Further development in the technology with the increasing user potential to enhance their home entertainment experience shall drive the market during the forecast period.
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