The global electric guitars market size was valued at USD 3.9 billion in 2021. It is projected to reach USD 6.93 billion by 2030, growing at a CAGR of 6.6% during the forecast period (2022-2030). In contrast to a typical acoustic guitar, an electric guitar needs external amplification to be heard at performance volumes. The vibration of its strings is transformed into electrical signals by one or more pickups, which are then amplified as sound by loudspeakers. On the amplifier settings or the guitar's knobs, the sound may occasionally be shaped or electronically altered to achieve different timbres or tonal qualities from those of an acoustic guitar. Electric guitars are generally used in metal and rock genres of music. One of the key aspects influencing the industry is the rising popularity of various genres. The increase of musical bands worldwide is another aspect affecting the market growth.
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Rising Demand for Online Music Classes
The electric guitar industry is driven by growing music digitization, increased government measures to support online music education, and the proliferation of linked and smart gadgets in e-learning. Learning music has evolved into a pleasurable activity that is being pursued by hobbyists and professionals, thanks to instructive videos on YouTube or similar applications, as well as online courses. Online courses differ from their traditional counterparts in that they foster greater interactivity. With movies, audio, and other images, content has become both emotive and succinct.
Additional benefits of online learning include convenience and scheduling flexibility. Also, various academic, professional, and recreational courses are offered. Another factor driving demand for online music education is the cost and time savings. Children find online learning less daunting and advantageous than traditional learning techniques because they may ask questions openly and review lectures whenever they miss something. Those with full-time jobs who are interested in learning music but lack the time or money to travel to traditional classroom settings can now access world-class instruction from renowned musicians and educators by taking advantage of online learning opportunities. In addition to students, teachers can also teach and earn while honing their talents at their convenience. These factors are anticipated to drive market growth over the forecast period.
Volatility in the Prices of Raw Materials
Steel and titanium prices are volatile and keep fluctuating, which has affected the electric guitar market growth. In 2021, prices for titanium and its derivatives increased due to rising demand and a drop in titanium mining. Titanium is considered one of the best materials for stringed instrument fixtures and adjusters. The most significant advantage of titanium is its strength-to-weight ratio, which is the highest for any metal. Thus, titanium prices affect electric guitars, which, in turn, impacts the overall electric guitar market growth. According to the Economic Times, India’s leading steelmakers increased steel prices by USD 46.03 a ton due to rising inflation and soaring coal prices in 2021. This rise in steel price is also anticipated to restrict the overall market growth of electric guitars over the forecast period.
Sustainable Musical Instruments
The market for electric guitars is anticipated to gain from profitable chances in the green industry. With a growing consumer base of ethical people concerned about animal rights and sustainable manufacturing practices, sustainable musical instruments can help market participants stay ahead of the competition. It is anticipated that electric guitars made sustainably or ethically will benefit from more critical commercial potential over the forecast period. Businesses can now sell their products online and reach a sizable number of clients worldwide thanks to increased customers making purchases through online platforms.
E-commerce retail channels are critical to the distribution of electric guitars because they generate a significant market revenue share. Consumers can browse various products at once without physically visiting retail locations, thanks to online sales platforms. E-commerce retail sales are predicted to increase dramatically over the next few years due to rising consumer spending, a growing population, and increased internet access. Additionally, the growth of mobile shopping apps and the accessibility of safe and straightforward payment options are contributing to the expansion of the global electric guitars market.
The global electric guitars market is segmented by product and distribution channel.
Based on product, the global market is bifurcated into solid body, semi-hollow body, hollow body, and accessories.
The solid body segment is the highest contributor to the market and is expected to grow at a CAGR of 6.9% during the forecast period. The widespread use of these guitars results from the appeal of the rock and metal music genres. Furthermore, rock bands frequently employ solid-body electric guitars. As a result, it is anticipated that the demand for solid-body electric guitars will increase as the number of bands increases globally. For instance, Geography Realm reports that Finland has 70.6 heavy metal bands per 100,000 inhabitants, compared to 53.2 bands per 100,000 people in the United States.
The semi-hollow segment is anticipated to grow steadily over the forecast period. Electric guitars with semi-hollow bodies are standard because they combine the benefits of both hollow and solid bodies. Future growth in the number of bands is anticipated to increase demand for semi-hollow electric guitars.
Based on the distribution channels, the global market is bifurcated into online and offline.
The offline segment owns the highest market share and is expected to grow at a CAGR of 6.3% during the forecast period. Products sold at offline retailers saw an uptick in sales once the lockdowns were removed in several nations worldwide. For instance, according to a blog post by Guitar.com, the famous Guitar Center store on Sunset Boulevard in Hollywood, California, experienced a triple-digit increase in sales in August 2020 (compared to August 2019), which the company attributed to an increase in podcasters and amateur musicians purchasing equipment to use while under lockdown for COVID-19. The variety of choices, low product costs, and strong brand recognition that the offline distribution channels provide make them an ideal platform for all kinds of customers.
To increase their customer base, primary guitar and musical instrument businesses like Dave's Guitar Shop, one of the biggest independent guitar stores, and Guitar Center, Inc. are building e-commerce websites. Online platforms like social media and Google Ads significantly influence consumer preferences for electric guitars. It is practical because one may get an electric guitar at a significant discount from a distance and take advantage of cashback incentives, etc. These variables are anticipated to fuel market expansion over the forecast period.
The global electric guitars market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant global electric guitars market shareholder and is expected to grow at a CAGR of 7.9% during the forecast period. The region's electric guitars market has been expanding due to a strong consumer impact and fast-changing consumer preferences brought on by rising per capita disposable income levels. Additionally, the market is anticipated to grow due to the rise in the number of musical groups performing at concerts and festivals, the rising popularity of music, the ability to spend money on recreation and leisure activities, and the rise in the number of musical groups hosting concerts and festivals. One of the biggest worldwide music instrument trade shows takes place in China. Electric guitars are made possible thanks to these big trade shows. These elements are fueling the region's demand for electric guitars.
North America is expected to grow at a CAGR of 7.1% during the forecast period. There is a significant growth in music performances, and live music concepts are becoming increasingly popular. Major electric guitar producers like Gibson Brands, Inc., Fender Musical Instruments, Karl Höfner GmbH & Co. KG, Ibanez guitars, Yamaha Corporation, and Michael Kelly Guitar Co. are also launching cutting-edge variants to penetrate the market further and amass a sizable customer base in the region, which has been fueling the market's growth. In addition, companies like Michael Kelly Guitar Co. and others are launching new variations to draw the most extensive client base in the area. These factors are anticipated to fuel market expansion over the forecast period.
Europe is anticipated to grow significantly over the forecast period. Spain is one of the best-known nations in Europe for its deep roots in numerous musical traditions. One of Spain's most notable musical traditions is Flamenco, which is based on folk music, string (guitar), and percussion instruments. Additionally, the nation is linked to the classical guitar, a well-known representation of Spanish music. The Spanish guitar market is characterized by a wide range of players and intense rivalry, despite the dominance of some top producers like Fender or Gibson.
The demand for music-related leisure activities and the increase in the number of music festivals and live events are predicted to propel the expansion of the electric guitar market in Germany. For instance, a blog post by Southampton German claims that more than 500 music festivals are held annually in Germany. Additionally, the market for electric guitars in the United Kingdom is anticipated to develop due to rising demand for music-related leisure activities and increased music festivals. For instance, three days of the Download Festival were held at Donington Park in the heart of England. These factors are anticipated to drive the global electric guitar market over the forecast period.
The global electric guitars market’s major key players are Gibson Brands Inc., Fender Musical Instruments Corporation, Karl Höfner GmbH & Co. KG, Ibanez Guitars, Yamaha Corporation, The ESP Guitar Company, Cort Guitars, Michael Kelly Guitar Co, Dean Guitars, and Epiphone.