Home Entertainment Device Market is Anticipated to Touch a CAGR of 4.1% During the Forecast Period (2023-2031).
Home entertainment devices, such an audio box, radio, headphones, DVD players, televisions, and gaming consoles, have been gaining significant popularity among the customers on account of increasing disposable income, rapid urbanization, changing lifestyles, and burgeoning middle-class population. The disposable income in the emerging countries such as India, China, Brazil, South Korea, and Japan has been increasing at a considerable rate, further surging the demand for luxury products such as home entertainment devices. The market’s most prominent driver is that these devices provide economical and hassle-free entertainment at competitive prices.
Asia-Pacific has one of the most price-sensitive customers, creating lucrative opportunities for emerging players in the market. As per the study commissioned by ‘The State of the Connected Home’ by Tech UK, around 40% of the customers aged 24–30 consider the high product price of home entertainment products a key barrier. In India, electronics manufacturing companies are actively working to offer quality products at competitive prices. For instance, recently, Xiaomi Corporation launched various home entertainment devices in the Indian market, including television, mobile phones, headphones, audio box, and speakers, and has gained huge popularity in the country. The company offers reliable products with advanced features at economical prices.
Rapid technological advancement and new product launches with advanced features are influencing the customers to replace conventional products with the latest home entertainment devices. The rapid expansion of the electronic industries provides an impetus to the market growth; as per the Statista, the global electronic products market is estimated to grow with a CAGR of 5%. Asia-Pacific and North America’s electronic products market are projected to grow with a CAGR of 5%. As per the India Brand Equity Foundation (IBEF) and Invest India, the Indian electronic products market is projected to reach USD 400 billion by 2025, with a CAGR of 17% during the forecast period.
home entertainment device market is segmented into audio device, video device and gaming console. The demand for the video device is expected to be high in the near future owing to the increasing trend of the watching movies, originals and playing games and other for entertainment at home. Also, consumers are more inclined towards visual entertainment. The growing internet services and smart features in the video devices are the factors for segmental growth. However, audio device market is expected to show remarkable growth in the near future. The audio devices such as sound bars, home theatres, and speakers for improved quality sounds for the events such as social gatherings, birthday parties, and other celebrations is expected to propel the market in the near future.
the market is segmented into the wired devices and wireless devices. The wireless devices segment is estimated grow at higher pace owing to convenience and compact size as they eliminate the wire. Also, the consumers increasing adoption of newer technologies are also responsible for the wireless devices market. Gradually the electronics industry is converting its product into reduced size for the convenience of the users which is why people are opting for wireless products.
the market has been segmented into store based retail and online retail. Store based retail is further segmented into hypermarkets/supermarkets and specialty stores. Store-based retail segments hold major market share. The online retailing is on boom owing to its convenience; still most of the consumers use to buy products specifically electronic products from retail stores such as hypermarket and specialty stores. This is due to the trust and satisfaction of purchasing product by physical touch among consumers. However, online retail is expected to witness highest CAGR over the forecast period due to the busier lifestyle of the consumers and convenience associated with the online retailing. In addition, digital technologies and shopping platforms such as Amazon and flipkart has gained the consumers trust, there consumer-friendly policies of easy returns and fast refund has inclined consumers towards online shopping. People are nowadays can order their home entertainment devices sitting at the home, office, and other areas on a single click. All such benefits are responsible for the high growth of online retailing.
Asia Pacific is estimated as the fastest growing market in the home entertainment device market owing to the increasing consumption of the consumer electronics and appliances in the region. The macro factors such as rising disposable income, growing middle-class demographic, adoption of high-end technologies, and declining of the electronics price are responsible for the market growth in the region. In addition, the increasing development in the technologies and favorable government policies regarding consumer electronics and appliances in the emerging countries of the Asia Pacific such as India are also impacting the market positively. Technology transitions in India such as the rollout of 4G/LTE networks and IoT are further accelerating the electronics demand which in turn expected to drive the home entertainment devices market. Government initiatives such as Smart City and Digital India are also influencing people to go for smart devices and technologies. In addition, China alone accounts for a 40% share in the global electronics industry. These factors are expected to give a positive impact on the Asia Pacific home entertainment device market.
Europe is also an important market for the home entertainment devices. The region is estimated as the second-largest market after the Asia Pacific for the home entertainment device. The increasing disposable income and availability of products at lower prices are the main factors for the market growth in the region. Moreover, the increasing adoption of IoT connected devices is expected to drive the market growth in the region. Germany is expected to hold the largest market share in the European region as the demand for the subscription video-on-demand services (SVOD) is increasing in the country. In addition, the growing interest of millennials in digital games is expected to drive the market in the region. As per the data provided by the Interactive Software Federation of Europe (ISFE), in 2018, the European video games market has grown by 15% and reached around USD 23 billion. The main markets for video games were Germany, France, UK, and Spain. These 4 countries generated around USD 14 billion on video games, with gaming consoles accounting for around 47% of that revenue. In addition, according to Statista, the digital games market in the UK has reached USD 2.8 billion in the year 2018. The growing digital game interest among consumers and the increasing digital gaming industry is expected to drive the European home entertainment market growth during the forecast period 2020-2029.
The players operating in the home entertainment device market are focusing on differential strategies such as collaboration, new product launches, acquisition, and strategic partnerships to enhance their penetration in the global market and to offer best quality product to the consumers. For instance, in 2019, Samsung Electronics Co., Ltd., has announced that its new Smart TVs that will be launch in 2019 and some models which are launched in 2018, will feature the recently launch Apple TV app and offer Airplay 2 support in over 100 countries. This new step by Samsung will attract consumers towards its TV, as they can enjoy Apple TV app and other Apple features on Samsung smart TVs.
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