According to the latest Worldwide Home Audio Market report from Futuresource Consulting, the home audio market (Wireless Speakers, Soundbars, Hi-Fi Systems, A/V Receivers and Speaker Docks) grew by 22% to ship 71 million units. Trade value also grew by 22%, generating just under $10 billion worth of revenue in 2014.
Wireless speakers and soundbar shipments exceeded market expectation and accounted for the lion’s share, far outweighing the decline in demand for traditional audio devices i.e. A/V Receivers and Hi-Fi Systems. The wireless speaker market was fuelled by strong growth in Bluetooth speakers in the lower end of the price spectrum and multiroom audio at the premium end.
Home audio devices increasingly offer wireless functionality and shipments with this feature grew by 93% from 27 million units in 2013 to 53 million units in 2014. Futuresource predicts that virtually all home audio devices will be wireless by 2019, “consumers seek connectivity to popular streaming services such as Spotify and Apple Music, as well as to other devices such as their smartphone,” commented Rasika Iyer, Market Analyst at Futuresource Consulting.
Futuresource projects continued growth for the home audio market over the coming years, with a volume growth of 8% CAGR by 2019, to reach 108 million units.
According to the report, North America currently dominates, accounting for 43% of the worldwide market. However, that is expected to fall to 38% by 2019 due, partly to the increasing popularity of wireless speakers in the Asia Pacific market.
“The home audio market is undergoing rapid change,” commented Jack Wetherill, Senior Market Analyst, Home Electronic at Futuresource Consulting. “As dedicated wireless speaker and soundbar brands grow significantly, we are seeing traditional CE brands shift their focus to wireless audio to remain competitive in the market.”