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

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

The loudspeaker market is expected to reach a CAGR of 11.33% over the forecast period (2021 - 2026). Ultrasonic sounds could be covered onto audible sounds for Internet of Things (IoT) communications. Some kinds of data could be encoded onto an inaudible, near-ultrasound layer placed on top of normal audible sounds that could rapidly scale the Internet of Things (IoT) adoption in loudspeakers. Moreover, most of the focus is on the micro & small speakers and rising innovative designs to produce high sound from tiny devices.

Key Highlights

• Increasing the use of loudspeakers for aural communication is driving the market as aural communication systems such as conferences, seminars, and attending to large audiences, have increased the use of loudspeakers to a huge extend. The compact size of in-wall loudspeakers is driving the market. These speakers are economical, have a level-headed sound range, and gradually replace the tower and individual speakers. They are also generally used in cafes and restaurants as they occupy less space.
• The increasing use of loudspeakers for communication purposes and the increasing use of multimedia equipment and digital modes of presentation in the corporate environment (ranging from investor presentations to gamification of employee metrics) stands to be one of the significant factors expected to boost the market growth for loudspeakers in the future.
• Various players in the industry are increasingly investing in R&D that allows them to innovate their offerings and come up with product developments that are technologically superior to the existing systems. The market for loudspeakers is primarily driven by the increasing technological advancements that enable the speakers to improve audio quality and increase connectivity and reduce size. 3D sound technology is being implemented in in-door and in-car speakers what enhances the user experience. The demand for audio devices for home entertainment like soundbars and subwoofers has also been on the rise.
• The market is witnessing mergers and acquisitions, thereby offering lucrative opportunities to companies to enhance their spending on technological advancements and market growth. In recent years, Biamp acquired Community Professional Loudspeakers and Apart Audio. There are many partnerships taking place to promote the usage of loudspeakers and boost their adoption across the untapped regions.
• Soundbars are the sleekest, least obtrusive way to get sound that is as impactful as the premium picture on the TV. They offer the ability to stream audio from any phone with no need to carve out room for a receiver or tower speakers and surround sound.
• However, harmful health consequences on children and other user groups and controlling frequency rules and regulations by the government are the major factors that may hinder the loudspeaker market growth.

Key Market TrendsSoundbar in Home Entertainment to Contribute for Significant Market Share

• A soundbar is a slim, oblong-shaped device that contains several individual speakers placed side by side. It can be mounted on the wall beneath the TV or placed flat on the TV stand in front of the TV. One of the primary drivers for the demand for soundbars is the development of TVs to become thinner and thinner. This reduces the space in the bezels to hide speakers, making the built-in speakers be weaker and less impressive sounding. Some modern TVs don't even come with built-in speakers anymore, and the customer expects a soundbar purchase.
• Another one of the major factors driving the market is the integration of voice assistance technology in the soundbar. For instance, in May 2020, Sonos Launched Dolby Atmos and Voice Assistant-Equipped Arc Soundbar. The Sonos Arc provided 5.0-channel or Dolby Atmos surround sound on its own with the help of eight woofers and three angled tweeters. Moreover, increasing the number of smart homes equipped with connected devices is boosting the market for home theatre, which also drives the sales of soundbars across the market.
• Soundbars are one of the most sought-after equipments for a quick upgrade of home audio entertainment systems for TVs, and the 3D soundbars are one of the latest offerings in this category. To simulate the 3D sound effect, soundbars use a combination of angled drivers to bounce sound beams off the walls and ceiling and clever processing.
• In Jan 2021, JBL released the JBL Bar 5.0 MultiBeam, which delivered a spacious 3D surround sound experience with the combination of Virtual Dolby Atmos and JBL's proprietary beamforming technology - MultiBeam.
• The increasing penetration of home entertainment systems and the need for enhanced sound quality are rising as disposable income increases in developing regions of Asia Pacific and MENA, driving the demand for soundbars. This trend is expected to be continued globally through the forecast period.

North America to Account for Significant Market Growth

• The North American market is a huge market for loudspeakers and is expected to grow in the coming future. According to the Consumer Technology Association, the market size of the Home Theater system in the USA in 2020 is expected to be USD 87 million, while that of wireless speakers is expected to be USD 5,975 million. Another speaker category, such as compact speakers and speaker components, is also expected to grow significantly.
• The smart speaker and stereo speaker systems will also grow multifold and are expected to reach a multi-million-dollar business by 2024. Smart speakers have emerged as the fastest-growing product in the smart home technology arena in recent years. Established businesses like Amazon.com, Apple, and Google are investing in smart speaker wireless technology or entirely in the development of smart speaker wireless multi-room audio streaming systems.
• Other segments of smart speakers such as Amazon Echo and Google Nest are also witnessing huge demands in the region. However, they have to face tough competition from other Chinese Vendors such as Baidu, Alibaba, and Xiaomi. Though, despite tough competition and lower prices offered by the Chinese vendors, Google and Amazon are able to maintain their market share.
• Voice-enabled speaker ownership is increasing at a quicker rate than any other household electronic item. Consumers are upgrading their traditional household speakers with A.I.-enabled speakers because of their multipurpose skills and capacity to interact with other devices; consumers are upgrading their traditional household speakers with A.I.-enabled speakers.
• According to a study by Consumer Technology Association, in the United States, One-third of U.S. homes (31%) own a smart speaker, and this segment is witnessing a 100% growth rate per year. After a breakout year of sales in 2019, devices like Apple AirPods and Samsung Galaxy Buds will help boost the category to over 67 million units in 2020 (up 35%), earning USD 8.2 billion in revenue (up 31%).

Competitive Landscape

The loudspeaker market is fragmented, as changing consumer demands push companies to innovate 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 KEF, Bose Corporation, Sonance, etc. Recent developments in the market are -

• September 2021: Bose Corporation launched Bose Smart Soundbar 900 in the United States. The Bose Smart Soundbar 900 supports multi-room Wi-Fi music streaming and AirPlay 2. The new Bose Smart Soundbar 900, marketed as a replacement for the Bose Smart Soundbar 700, also supports Amazon's Alexa and Google Assistant.
• June 2021: Bowers & Wilkins's partnership with McLaren is expected to reach a better position as McLaren announced to release four new cars in India, namely the GT, the 720S Coupe, and Spider, and the Artura. The company has partnered with McLaren to install 12-speaker Bowers & Wilkins audio system will be installed in these vehicles.

Additional Benefits:

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

KEF Audio UK Ltd
Sonance
Bose Corporation
Cerwin Vega
Wharfedale (International Audio Group)
Bowers & Wilkins (EVA Automation)
Behringer (Music Tribe Global Brands Ltd)
Peavey Electronics Corporation
Klipsch Audio Technologies
Jamo (Klipsch LLC)
Dynaudio AS
Vandersteen Audio Inc.
Koninklijke Philips NV
Amazon
Alphabet
Harman International
Sonos Inc.
Baidu
Lenovo
Sony Corporation
Alibaba Group Holding Ltd
Onkyo Corporation
Panasonic Corporation

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