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

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

The Audio Equipment Market was valued USD 12.13 billion in 2020, and it is expected to reach USD 17.01 billion by 2026, registering a CAGR of 5.9% during the forecast period. (2021-2026). The COVID-19 pandemic has led to nationwide lockdown restrictions, which have limited the adoption of audio equipment for commercial applications. The shutdown of college universities and educational institutions, museums, galleries, postponement of musical events and other gatherings, and several other restrictions are expected to create a negative impact on the growth of the market for commercial applications specifically.

Key Highlights

• Technological advancements and development in the music industry have unleashed the application of Digital Audio Workstation (DAW) among artists for the tasks of composing, recording, mixing and mastering in music. The increase adoption of cloud-based audio workstations and growing digitization of instruments will enhance new trend in the coming years.
• The rising tendency of increasing expenditures on global festivals and music concerts is expected to propel the requirement for professional audio equipment. With increasing number of trade shows, motion production and films, exhibitions, music concerts, and sports events, it is expected to lead to rise in demand of various innovative audio amplifiers. For instance, according to Billboard magazine, 32 million people go to at least one music festival in the US every year.
• Rise of audio equipment in automobiles is driving the market. A small collection of amplifiers and sound processor replaces the factory amp in a premium system without losing any of the vehicle's features or functionality. With an increase in the production of automobiles, the demand will increase effectively.
• Design and complexity provide challenges for the development of high-efficiency audio equipment as there is high interface integration issues with high complexity in designing mixing circuits especially for audio mixers and amplifiers, which restraints the growth of the market.

Key Market TrendsMicrophones Expected to be The Fastest Growth Market

• With nearly everything now operating from home – TV productions, education, health and wellness, and everyday work, vendors are gauging the need for improved audio in these settings, and thus, are getting involved in introducing new products to the market.
• In October 2020, Shure announced the launch of its new MV5C Home Office Microphone designed for working-from-home professionals and executives. In presenting the new mic, the company stated that it will support the needs of professionals of all levels in the new age of virtual collaboration, with a product that provides optimal audio quality by prioritizing the user’s voice and not the environment.
• The MV5C is a directional microphone that features Shure’s Speech Enhancement Mode to enhance the user’s voice on audio or video calls and is compatible with Mac or Windows devices with USB-A and USB-C connectors.
• Moreover, the audio accessories are also catering to the growing demand across the market. Miniature microphones and accessories are the products outlined for professional sound reproduction in installation, broadcast, film, and field applications. Players are investing in broadening their technology as it covers higher demand. For instance, in April 2019, B&H announced that Shure TwinPlex series microphones may soon be available, and this product line represents a big step forward in miniature microphones designed for theater, stage, and film.
• Furthermore, in April 2020, ​Bose and Sennheiser together launched a product bundle for meetings. The companies aim to create an overall solution for corporate meetings. The result of this inspiring collaboration was a Microsoft Teams certified meeting solution consisting of three Bose products (EdgeMaxEM180 ceiling speakers, PowerSpace P2600A amplifier, and ControlSpaceEX-440C DSP) and a Sennheiser product (TeamConnectCeiling 2 ceiling microphone), together called the “ES1 Ceiling Audio Solution”. The entire ES1 Ceiling Audio Solution bundle has been certified for Microsoft Teams facilitating users with easier setup, better compatibility, and fewer issues.

Asia Pacific Account for Significant Market Share

• Asia-Pacific is expected to capture a significant share of the audio equipment market due to the increasing technological innovation, presence of some of the leading audio equipment providers, such as Yamaha Corporation, Alpine Electronics, and rapid industrialization, which have led to a steady stream of new audio equipment.
• Also, several global market players are rapidly expanding and strengthening their market presence in the region, owing to the region's several opportunities for growth. For instance, in January 2019, German audio technology company d&b audiotechnikstrengthened its organization in Asia, where newly appointed Vice President of Sales of Asia-Pacific will support them as they want to continue establishing a pro-audio brand in Asia-Pacific. The creation of this role will strengthen the APAC team to deliver exceptional audio solutions and services to customers and partners in the region.
• New innovations are also increasing the market growth in this region. For instance, in August 2019, Denon, a Japanese audio brand acquired by Sound United, a company with a portfolio of audio brands including Marantz, Polk Audio, Definitive Technology, and Boston Acoustics, has been energetically launching new products since it took over Marantz and Denon, and the latest item from Denon is this exciting pairing of an amplifier and CD player that offers audiophile performance at an affordable price. The Denon PMA-600NE integrated amplifier and the DCD-600NE CD player could be the foundation for anyone building or upgrading a Hi-Fi system.
• Similar developments have been witnessed across other players as well. For instance, in May 2020, Yamaha expanded its Premium Hi-Fi Family of Audio Components with the addition of A-S Series of Integrated Amplifiers. Allied models, A-S1200, A-S2200, and A-S3200 integrated amplifiers are compatible with the company’s 5000 Series of speakers, amps, pre-amps, and turntable, thus enabling the music industry to leverage a complete line-up of Hi-Fi audio components from the company.

Competitive Landscape

The audio equipment market is highly fragmented as changing consumer demands are driving companies to innovate in the space to attract more consumers. The rivalry in this market has intensified over the years, with companies launching a multitude of products to attract consumers. Key players are Yamaha Corporation, Alpine Electronics, Allen & Heath, etc. Recent developments in the market are -

• April 2020 - JlabAudio introduced USB Microphone with new talk series that are multi-tiered lines, making it ideal for podcasts, professional-level recording, streaming, web-based calls, and gaming. The company introduced three models of different prices, such as the Talk Pro for USD 149, Talk Go for USD 49, and Talk for USD 99, making it more affordable to attract various consumers from the commercial market.

Additional Benefits:

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

Companies Mentioned

Yamaha Corporation
Alpine Electronics
Allen & Heath
Kenwood Corporation
Behringer
AKG Acoustics (Harman International)
Peavey Electronics
Krell Industries
NXP Semiconductors
Bryston Ltd

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