Increasing Number of Smartphone Users and Emergence of Covid-19 to Augment Growth of Home Audio Equipment Market

     

The rapidly emerging home audio equipment market is forecast to witness strong growth due to the rising popularity of electronic music technology. Reduced manufacturer concentrate on built-in sound system quality in new television sets, expected to further accentuate the demand for external sound solutions in the home audio industry. Likewise, the increased use of wireless devices to stream music or communicate with others, in addition to the convenience offered by digital connections to iPods and other portable media players, are expected to contribute to the growing consumer interest in home audio equipment. Rising popularity of online trading sites offering a wide range of pre-owned home audio equipment is also expected to boost the sales of previously owned audio systems in the coming years. Ultimately, the increased demand and lower supply of home audio equipment lead to a fall in prices, which in turn will spur consumers to purchase more sophisticated equipment at lower prices.

Market Dynamics

Increasing number of smartphone users is expected to propel growth of the global home audio equipment market over the forecast period. For instance, according to Pew Research Center, 76% of adults in the U.K. owned a smartphone in 2018. Moreover, increasing disposable income is also aid in growth of the market. For instance, according to the Bureau of Economic Analysis, the personal income in the U.S. increased U$ 106.8 billion (0.6 percent) in February 2020 and disposable personal income increased US$ 88.7 billion (0.5 percent) and personal consumption expenditures increased $27.7 billion (0.2 percent).  

Growing e-commerce sector is expected to offer lucrative growth opportunities for players in the global home audio equipment market. For instance, according to India Brand Equity Foundation, the e-commerce sector in India is expected to reach US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Moreover, emergence of Covid-19 and increasing investment in OTT platforms is also expected to aid in growth of the market. For instance, in December 2020, Toonz Media Group partnered with digital content distribution platform OTTera to provide technology support for the Group’s brand-new OTT platform.

Competitive Analysis 

Major players operating in the global home audio equipment market include, Akai Electric Co. Ltd, Nakamichi Corporation, Dolby Laboratories Inc., DTS Inc., Bose Corporation, JVC KENWOOD Holdings Inc., Panasonic Corporation, Koninklijke Philips Electronics NV, and LG Electronics Inc.

Major players operating in the global home audio equipment market are focused on launching new products to expand their product portfolio. For instance, in May 2020, Dolby Laboratories partnered with TIDAL, a music and entertainment streaming platform, to launch Dolby Atmos Music.