Bluetooth Speaker Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Bluetooth Speaker Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Bluetooth speaker market is expected to grow at a CAGR of 18.1% over the forecast period (2021 - 2026). The need and popularity of the wireless speakers bolstered the demand for Bluetooth speakers, over the past few years. This trend can be attributed to the greater availability of these devices, at affordable prices and the consumer preference for smart portable devices. ​

Key Highlights

• With this rising demand for wireless speakers, Bluetooth technology has gained momentum in the market for speakers, globally. This is because the technology works with a wide range of mobile devices, including Apple iPhone and Android smartphones. Bluetooth speakers also tend to be less pricey than WiFi options.​
• According to the Consumer Technology Association, in the United States in 2019, 88% of the wireless speakers sold in the United States were Bluetooth technology-enabled followed by Wi-Fi- and smart speakers with 67% and 62% shares, respectively. ​
• Moreover, in the Chinese market as well, the prominence of Bluetooth speakers has increased. According to Qualcomm, as of 2019, the Chinese consumers looked for better sound quality, ability to play at loud volumes without distortion, long standby hours on battery, and affordable price, and Bluetooth speakers fit best for these demands.
• In addition to this, home automation is now poised to scale, owing to Bluetooth full-home automation systems. The Bluetooth mesh will continue to provide a reliable wireless connectivity platform that enables automatic control of lights, thermostats, smoke detectors, cameras, doorbells, locks, and more. Meanwhile, the smart speaker has emerged as a potential central control unit for the smart home. Smart speaker volume is forecasted to grow 3 times by the end of 2022, as per the Bluetooth report.
• The COVID-19 is expected to have a significant impact on the market in the current year and is anticipated to continue to have an impact for the first two quarters of the year following it, as the supply chain has experienced a huge disruption owing to the COVID-19 being declared as a pandemic. ​
• Asian countries such as China, India, South Korea, Taiwan, Japan who have a significant presence of manufacturers of the raw materials used in Bluetooth speakers manufacturing has experienced lockdown and disrupted the production schedules. The sales have been down as the lockdown in most of the global economies has been resulted in deliveries limited to essentials and has resulted in companies revising their revenue targets.

Key Market TrendsPortable Bluetooth Speaker Segment to Witness Fastest Growth

• Portable Bluetooth speakers are devices that are comparably smaller, lighter, and can be moved anywhere. Portable speakers come in many shapes and sizes. Soundbars, tubes, and clips are some of the most widely consumed models in the market. Changing consumer dynamics in the market and increasing preference by the consumers toward portable devices are supporting the growth of the market.
• The growth of audio streaming technology in various applications, like the wireless speakers and in-car-infotainment systems, is driving the portable BlueTooth speaker market. Moreover, the audio streaming technology can be used in point-to-point topology available on BlueTooth BR/EDR that is optimized for audio streaming, making it the standard-bearer in wireless audio.
• According to the Bluetooth.com, with the increasing Bluetooth usage in the audio and entertainment industry, 8 out of 10 speakers may include Bluetooth by the end of 2022. Additionally, the smart speaker market is expected to grow by three times by the end of 2022.
• Moreover, the evolution of lithium-ion batteries helped the portable speaker market immensely by offering longer playtime with the need for frequent charging. Power banks and quick charging technology assisted in fueling the demand by addressing charging concerns and reducing the weight of speakers

North America to Hold the Highest Market Share

• North America is expected to hold a prominent share in the Bluetooth speaker market. The technological breakthroughs have assisted the advancement of Bluetooth speakers that can significantly improve accuracy in various applications. ​
• The United States had marked the beginning of early use of portable speakers, owing to increased penetration of smartphones and other mobile devices along with the availability of online music and video streaming at the earliest. According to the Recording Industry Association of America, the paid subscription streaming music revenue in the United States rose from USD 474 million in the first half of 2015 to USD 3300 million in the first half of 2019, which was more than any other country.​
• Moreover, the exponential proliferation of smartphones, tablets, PCs, or other dedicated wireless controllers is propelling the requirement of smart devices and boosting the growth of the wireless speaker market in the country. According to the Consumer Technology Association, the wireless speaker sales in the country increased from 17.75 million units in 2015 to 71.11 million units in 2019, which was a huge rise. In support of this demand for wireless speakers, the wide use of Bluetooth technology further strengthens the market demand in the region. Sony, Philips, Panasonic, and Bose are the most used speakers in the country.​
• Furthermore, for companies, such as Bose that are based out of North America, the United States generates a major portion of revenues. For companies, such as Sony Corporation and Samsung Group that based out of the Asia-Pacific region as well, the United States offers lucrative opportunities for expansion. This is owing to rapid technological developments and higher smart home penetration in the region.

Competitive Landscape

The bluetooth speaker market is highly fragmented, as changing consumer demands are pushing companies to innovate in the space to attract more consumers. The competition in this market has intensified over the years, with companies launching a multitude of products to attract consumers. Some of the key players in the market are Sony Corporation, Harman International Industries, Bose Corporation, Koninklijke Philips NV, and Shure Incorporated. Some of the key developments in the market are:

• In May 2019 - Sony Corporation launched its first Bluetooth speakers focused on outdoor usage. The speaker, Sony GTK-PG10, offers 13 hours battery backup and is equipped with The DSP (Digital Signal Processor) that auto-adjusts the sound based on its surroundings and weighs around 6.7 kg
• April 2019 - Harman a wholly-owned subsidiary of Samsung Electronics Co. Ltd. focused on connected technologies for the automotive, consumer, and enterprise markets, showcases its Premium Communications solution for the first time in China at the Shanghai Auto Show. Premium Communications is a first-of-its-kind modular offering designed to elevate present in-vehicle communication environment. Premium Communications enables clear, frustration-free conversations for all occupants within a vehicle.Bluetooth

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• The market estimate (ME) sheet in Excel format
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Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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