Consumer Audio Market

Market Overview

The global consumer audio market size was valued at USD 99.58 billion in 2022. It is estimated to reach USD 303.21 billion by 2031, growing at a CAGR of 13.17% during the forecast period (2023–2031). The introduction of voice first and technology and its surging consumer adoption are driving the global market. The flourishing demand for consumer audio products such as headsets and microphones from the gaming industry is further fueling the market growth.

Audio and sound equipment encompasses a wide range of electronic devices employed to transmit, reproduce, or capture audio. Consumer audio encompasses technologies and sound products intended for individual and domestic use by consumers. This category comprises many devices and systems for recreational activities such as music listening, movie viewing, video game playing, and more.

Microphones, amplifiers, soundbars, headsets, speaker systems, headphones, etc., are a few consumer audio systems. With developments in sound processing, portability, and wireless connectivity, consumer audio technology has substantially developed over time. Thus, individuals are presented with an extensive selection of premium aural products that augment their entertainment encounters.

Market Dynamics

Global Consumer Audio Market Drivers

Popularity of Voice-First Technology

Voice-first technology is used mostly by the current generation, which is growing around devices that can reply to queries. Voice control has quickly become the norm for consumer electronics, including smartphones, tablets, laptops, and wearable tech. Voice-first technology significantly impacts consumers worldwide, especially in developed parts such as the US and other European countries. Moreover, in the current scenario, it is finding its application among consumers and becoming the mainstream technology used in several consumer devices.

One such embedment has been observed in various product segments of consumer devices such as speakers. Voice-first devices include voice-assistant speakers such as the ones offered by Amazon (Echo, Echo Dot, and Tap) and Google (Home) and allow the voice command capabilities to be applied directly. The next generation of consumers would expect AI voice interaction. Over 50% of all human interaction with computers will be voice-assisted by 2025. This, in turn, drives the market growth in the upcoming years.

Rising Demand from the Gaming Industry

The gaming industry has become a significant driver for the consumer audio market. Gamers demand high-quality audio for an immersive gaming experience, leading to the development of specialized gaming headphones and audio accessories. The video game industry is amongst the fastest growing in the world. According to Statista, the global video game industry has been a multibillion-dollar business for decades. The global gaming market was projected to bring in 347 billion dollars in revenue by 2022, with 248 billion coming from the mobile gaming sector.

Additionally, the growth of the gaming industry supports the sale of gaming accessories, including gaming microphones and headsets. Gaming headsets provide better features than ordinary headphones, such as clearer sounds, real-life 3D sound quality, and noise-canceling for comfortable communication. Moreover, gaming headsets also consist of a mic on that pair for communication. Such factors boost the global market.

Global Consumer Audio Market Restraint

Acoustic Challenges Related to Consumer Audio Devices

Many acoustic challenges are associated with the design and layout of the location or place where consumer audio devices need to be fitted and offer quality outcomes. An acoustic challenge can occur due to the unique design or architecture of the place. Legacy systems cannot handle or meet the expectations of a wide array of performances in modern-day theaters, houses of worship, or halls. Before considering the design of an audio solution, it is necessary to create a link with the physicality of the space. This is a major challenge for the global market.

Global Consumer Audio Market Opportunities:

Strategic Initiatives by Key Players

The key market players are involved in several strategic initiatives like joint ventures, acquisitions, expansion, product launches, etc. For instance, in June 2022, a leading private investment firm, Highlander Partners, L.P., announced today the acquisition of McIntosh Group via a newly formed holding company. McIntosh Group, which currently manufactures and distributes under several renowned brand names the world's finest amplifiers, speakers, turntables, and other audio products, has been an industry pioneer and leader in high-end consumer audio for decades.

Similarly, in May 2023, Samsung Electronics America unveiled the latest inclusion in their soundbar portfolio for 2023, namely the HW-Q900C. The soundbar is part of a range of devices that offer distinctive features designed to enhance the audio experience and offer users a wider range of choices. The HW-Q900C belongs to Samsung's prestigious Q-series lineup, which encompasses high-end soundbars meticulously designed to deliver exceptional audio performance characterized by robustness and an immersive auditory experience. Such factors create opportunities for market growth.

Regional Analysis

Based on region, the global consumer audio market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global consumer audio market shareholder and is expected to expand substantially during the forecast period. Factors such as high spending power, increased smartphone adoption, inclination toward new technology, and high urbanization are driving North America's market growth. The millennials mainly drive the market, and they can be termed as a digital generation as they are tech-savvy, and most of them are addicted to their smartphones. In 2019, about 96% of the US population was estimated to listen to music and spent more than 25 hours a week. Similarly, more than 1.15 trillion on-demand tracks were streamed in audio and video format across several platforms in the country in 2019. The trend of on-demand streaming is boosting the sale of consumer audio market in the region.

Additionally, the US is witnessing the greater use of voice technology in facilitating e-commerce. The total voice commerce market value in the US is expected to reach USD 45 billion by 2023. These factors are expected to drive the demand for smart speakers, which, in turn, will drive the market revenue for consumer audio during the forecast period. Moreover, there has also been a surge in the launch of consumer audio devices in the region. For instance, in April 2023, Focal replaced its Chora lineup with a new line of entry-level speakers. Compared to its predecessor, the Focal Theva features a more streamlined cabinet design and new color options. According to Focal, every speaker is optimally designed for home theater and music listening. Six new speakers have been added to the lineup and are expected to appear by the end of the month. Focal Theva made its public début at Axpona (Audio Expo North America) in Chicago, Illinois, from April 14-16, as announced by the company. Such factors are anticipated to expedite the market expansion.

Asia-Pacific is home to the most rapidly expanding gaming community globally, with South Korea, China, and Japan at the forefront. The proportion of Chinese citizens who identify as gamers stands at 64 percent. Due to its substantial populace and overall economic growth, more individuals can procure games and gaming equipment. Asian enthusiasts allocate USD 12 billion annually towards mobile games, with South Korea and Japan ranking first globally in average game spend per user. The group's responsiveness will result in significant sales growth for both endemic and non-endemic gaming products, with gaming headphones and audio accessories being a particularly noteworthy accessory utilized in gaming. This, in turn, will propel the market forward. 

Furthermore, the rise in advancement has led to the introduction of smart consumer audio technology in the region. For instance, in October 2023, Sonos, a renowned brand in the realm of audio devices, introduced the Era 30o and the Era 100 smart speaker models in the Indian market. Both speakers belong to the premium category and are characterized by their emphasis on sustainable design. The smart speakers are composed of plastic derived from post-consumer recycled (PCR) materials and are packaged in fully recyclable materials. There is a notable decrease in the utilization of adhesives, with a shift towards the adoption of screws to facilitate ease of repair. Such launches are estimated to boost market expansion.

Segmental Analysis

The global consumer audio market is segmented by product, connectivity, and application.

Based on product, the global market is divided into microphones, soundbars, speaker systems, headphones, and headsets. 

The headphones segment is the most significant contributor to the market. Headphones are over-the-ear audio devices for listening to recordings, music, or other types of sound. They typically comprise a headband-connected pair of earpieces, with a speaker driver integrated into each earpiece for sound production. Various designs and varieties of headphones are available, such as over-ear, on-ear, and in-ear forms. Headphones can be wired or wireless, with wireless options connecting to audio sources via technologies such as Bluetooth.

In addition to private listening and professional audio monitoring, they are also utilized for communication and gaming. The key players are launching innovative and technologically advanced products in the market, boosting the segment growth. For instance, in September 2023, Dyson, a British technology company, declared its foray into the wearables sector within the Indian market by introducing a line of noise-canceling headphones.

Based on connectivity, the global market is divided into wired and wireless. 

The wireless segment dominates the global market. Wireless consumer audio devices encompass electrical equipment specifically engineered for audio playback or communication, eliminating the necessity for physical wires. These gadgets employ wireless technology to facilitate the transmission of audio signals among various components, granting users the liberty to move about without the constraints imposed by physical cables. Bluetooth is the prevailing wireless technology employed in consumer audio devices. At the same time, alternative technologies like Wi-Fi and proprietary wireless protocols are also utilized, contingent upon the specific device and its intended purpose.

Additionally, the new product launches in this segment are expected to augment the segment's growth. For instance, in India, Blaupunkt, a German electronics and audio manufacturer, introduced the 220Watt SBWL100 Dolby Soundbar this week, targeting OTT enthusiasts. According to the manufacturer's assertion, the wireless soundbar, possessing a capacity of 220 watts, ensures the provision of robust bass and pristine audio quality.

Based on application, the global consumer audio market is bifurcated into education, commercial, retail, commercial, government, industrial, and hospitality. 

The commercial segment is the highest contributor to the market. Commercial environments frequently employ consumer-grade speakers and amplifiers to power public address systems. These systems find application in airports, malls, retail establishments, and other public areas, serving functions such as announcements and background music. Numerous establishments employ consumer audio devices to provide ambient music.

Home-use speakers and audio systems are typically utilized in offices, cafes, restaurants, and retail establishments to create a welcoming environment for patrons and staff. Although consumer audio devices may not consistently exhibit the same degree of longevity or audio quality as commercial-grade equipment, they frequently remain more cost-effective. They can fulfill the requirements of particular commercial applications.

Recent Developments

• June 2023- TCL®, a prominent and best-selling manufacturer of consumer electronics on a global scale, unveiled five additional premium soundbars today for its Q Class and S Class product lines. Motivating customers to enhance their entertainment systems, TCL's groundbreaking soundbar product line expands the functionalities of home theaters and enhances the aesthetic appeal of its acclaimed televisions.

• May 2023- Skyball, an innovative manufacturer of smart accessories and home audio products, unveiled its first collection of home audio products. The Portable Sound Bar Neo20, Party Box 600, Party Pillar 1200, Party Pillar 1100, and Party Pillar 1300 are included in the product lineup of Skyball.