Pro Speakers Market

Market Overview

The global pro speakers market size was valued at USD 2.04 billion in 2022. It is estimated to reach USD 2.86 billion by 2031, growing at a CAGR of 3.86% during the forecast period (2023–2031). The demand for pro speakers has witnessed a significant rise due to the growth of the live performance and music industry worldwide.

A pro speaker, also called a professional speaker, is used by high-end consumers for studio-quality audio equipment to record sounds, set up sound reinforcement systems, and mix audio. Consumer- or home-oriented audio, primarily designed for listening in a non-commercial setting, is distinguished from professional audio. They provide an accurate, transparent, and uncolored replication of the tonal qualities of the original audio, allowing for the natural reproduction of the recorded material.

Record producers, audio engineers, sound engineers, and audio technicians typically use these speakers to record tracks and albums in recording studios. These devices ensure that the output provides accurate surround sound and distributed audio for residential installations. Professional loudspeakers have extensive applications in producing audio for radio broadcasts, television broadcasts, and sound reinforcement applications, like live concerts and DJ performances.

Market Dynamics

Global Pro Speakers Market Drivers

Growing Live Performance and Music Industry

Pro speakers equipment, lighting systems, and the associated pro-AV systems and solutions are the heart and soul of the global live music industry. Recently, the world has witnessed a spurt in the expansion of live music concerts and events. This growth is driven by revenue generation for artists who see live music concerts as a primary source of their income. The increasing corporate sponsorship for music tours, venues, and events also contributes to market growth.

For instance, live music sponsorship grew to around USD 6 billion compared to USD 5.8 billion in 2018. Attendance at such concerts is increasing exponentially as the audience can witness and experience their favorite artists performing on the stage. For instance, the number of people who attended live music performances, festivals, and events in the UK increased from 3.5 million to over 31 million in 2016. Hence, the market is expected to grow gradually during the forecast period.

Growing Popularity of Night Clubs and Bars in Asia-Pacific 

Nightclubs and bars experienced a reduction in revenue in the year 2020 because of the implementation of lockdown regulations. Nevertheless, towards the end of 2021, the reopening of nightclubs and pubs resulted in a surge in the demand for sound equipment within the region. Ever-changing trends in people's lifestyles and behavior have contributed to the popularity of bars and pubs in Asia-Pacific countries.

Customer behavior is also changing due to the expansion of the IT and BPO industries in India and other Asia-Pacific nations, which has increased disposable income that the younger generation is willing to spend on bars and pubs. The economic impact of the nightclub industry extends far to the pro speakers market. In 2020, Singapore witnessed an increase in pubs to around 761 and 127 karaoke lounges. Therefore, opening bars and pubs significantly generated additional revenue for the pro speakers market.

Global Pro Speakers Market Restraint

Acoustic Challenges Related to Pro Speakers

Many acoustic challenges are associated with the design and layout of the location or place where pro speakers 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. In order to include audio solutions in a given space, it is imperative to first obtain a comprehensive knowledge of the physical characteristics of the space before embarking on the design process. This is a major challenge for the global pro speakers market.

Global Pro Speakers Market Opportunities

Increasing Exhibitions, Conferences, and Seminars 

The increasing number of global exhibitions, conferences, and seminars will drive the demand for pro AV solutions and speaker equipment worldwide. Globally, about 4.1 million companies participate in trade exhibitions, which are further attended by about 283 million visitors annually. An average of 30,840 exhibitions happen every year in a variety of sectors across the world. The growth in the global exhibitions market has historically been driven by corporate profitability that arose from the fluid movement of capital, goods, and people.

The world has also witnessed increased academic conferences, workshops, and seminars. Numerous scientific institutions, universities, and other educational institutions are investing more in seminars and conferences to educate end-users on particular issues, scientific advancements, and specific topics. Pro speakers equipment is an integral part of such events. Therefore, an increasing number of such events would boost the demand for pro speakers products, thereby creating market expansion opportunities during the forecast period.

Regional Analysis

North America Dominates the Global Market

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

North America is the most significant global pro speakers market shareholder and is anticipated to exhibit a CAGR of 2.93% during the forecast period. In North America, market growth is being boosted by factors such as the high spending power of millennials and baby boomers, increased participation in music festivals, the increased adoption of smartphones, a preference for new technology, and high urbanization. The United States is the dominant market in the region for pro AV systems and pro speaker systems and solutions. In addition, the millennial generation exerts significant influence over the majority of the market. The individuals in question possess a high level of technological proficiency, with a significant portion exhibiting addictive behaviors toward smartphone usage.

Additionally, the region is anticipated to experience substantial expansion in the pro speakers market due to the projected rise in the hospitality, travel, and tourist industry. Approximately 80% of the total population in the nation resides in metropolitan regions. Urbanization leads to a shift of people from rural to urban areas, helping the country develop by adopting technological changes and innovations. As a result, the country is a developed nation with a median household income of USD 65,000. Similarly, higher disposable income, consumer spending, and purchasing power encourage people to attend musical festivals, expos, and other activities. This has fueled demand for pro speakers in the region.

Asia-Pacific is estimated to exhibit a CAGR of 4.57% over the forecast period. Asia-Pacific, with a population of over 3 billion, constitutes about 60% of the world's population. The urbanization of developing nations in Asia-Pacific is expected to positively affect market expansion during the forecast period. The region also has the highest rate of urbanization among all other regions. According to the World Bank, the number of urban households will increase by approximately 68% between 2010 and 2030. The urbanization of emerging countries in Asia-Pacific is expected to bolster retail sales and growth in the entertainment, broadcasting, hospitality, exhibition, healthcare, and restaurant industries. All such factors are anticipated to propel the demand for pro speakers in the region.

Similarly, the urbanization of developing nations in Asia-Pacific is expected to bolster retail sales and the growth of industries like entertainment, broadcasting, exhibition, hospitality, healthcare, and restaurants. Although Japan is a significant market for pro-speaker systems, China and India are predicted to have increased demand due to expanding government initiatives for a digitalized economy.

Europe is home to some of the most developed countries in the world, including the United Kingdom, France, Italy, and Spain, and its economy is one of the largest and wealthiest in the world. The market also has several world-class industries, like automobiles, financial services, and hospitality. Since the introduction of the Industrial Revolution, Europe has grown rapidly in terms of living standards, per capita income, productivity standards, and adoption of innovation and technology. The surging economic development in the region has also led to rapid urbanization in countries, with people opting for more advanced products and technologies.

In addition, the regional market for pro speakers is driven by the region's high awareness and adaptability of technology. The continuously growing hospitality sector is expected to generate increasing demand for regional pro speakers to provide travelers with musical and recreational experiences. Hence, this will likely contribute to the European region's pro-speakers market growth.

Latin America is also known for its music festivals that attract people from diverging cultures. These festivals occur yearly and portray music, fashion, and local culture. These festivals are prominent consumers of pro AV solutions such as pro speaker systems. The rising demand for music and the increasing number of music enthusiasts will further drive the market growth in Latin America. The growing number of internet and smartphone consumers in the region also acts as a catalyst for the expansion of the pro speakers market.

In the Middle East and Africa, concerts and live music have yet to become popular. In these regions, both market demand and market penetration are minimal. Nonetheless, major events such as the 2020 Dubai Expo in the United Arab Emirates and Qatar's 2022 FIFA World Cup are estimated to expedite market growth. The demand for these devices will increase during the forecast period due to the expansion of market share-seeking vendors in these nations.

Segmental Analysis

The global pro speakers market is segmented by product, amplification method, composition, end-user, and distribution channel.

Based on product, the global pro speakers market is bifurcated into point source, line array, sub-woofers, and others. 

The point source segment dominates the global market and is projected to exhibit a CAGR of 3.39% over the forecast period. A point source speaker system is the most common type of speaker system available and offered by vendors in the market. They are also commonly known as traditional or point-and-shoot loudspeakers. Typically, these devices come rectangular. They contain a horn designed to cover a specific horizontal and vertical angle. In addition, these are budget speakers and come in a variety of sizes. Considering their coverage or scope, room dimension, and aesthetic appeal, these speakers are largely suitable for small venues, houses of worship, small live events, retail outlets, and corporate setups. Moreover, the cost-effectiveness and coherence of these products contribute to their market appeal.

Based on the amplification method, the global pro speakers market is divided into passive speakers and powered speakers. 

The passive speakers segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 3.17% over the forecast period. Passive speakers portray only the basic features or functionality. A passive speaker lacks an internal amplifier. In order to operate, they must be linked to an amplifier. They do not need to be brought in as the amplifier powers them. In addition, audio devices need to be connected to the amplifier to use passive speakers. It is simpler to upgrade and repair passive speaker systems.

Based on the format, the global pro speakers market is divided into digital and analog speakers. 

The digital speaker segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.01% over the forecast period. Digital sound format is mostly preferred globally and accounts for a higher market share. Electromagnetic interference is less sensitive in digital sound systems. They have a higher power supply rejection ratio (PSRR), simplifying their architecture and improving audio quality. The digital segment is projected to increase its share due to the high number of connected devices and internet users worldwide over the forecast period.

Based on end-users, the global pro speakers market is segmented into corporates, large venues and events, educational institutes, government and military, studio and broadcasting, hospitality, and others. 

The corporate segment owns the highest market share and is estimated to exhibit a CAGR of 3.22% during the forecast period. The corporate sector has been growing, fueling the demand for new offices worldwide. It is anticipated that there will be a rise in the demand for office spaces during the forecast period, coinciding with the strengthening of global economies. The net absorption of office spaces declined in many countries in 2020. For instance, the net absorption of office spaces was 25.5 million sq ft, declining at around 45%. In addition, Pro AV solutions are anticipated to be more in demand during the projected period as office space demand rises. This would further drive the demand for pro speakers equipment in the corporate sector worldwide.

Based on distribution channels, the global pro speakers market is divided into retail and online. 

The retail segment contributed the highest market share and is predicted to exhibit a CAGR of 3.17% over the forecast period. Retail stores are the major destination for end-users purchasing pro speakers equipment. Although the trend of selling these products online and in OEM stores is increasing, a significant share of product distribution occurs through conventional pro audio and electronics stores/outlets. In addition, Pro speaker equipment producers harness these stores due to personalized customer services. The staff in these stores are educated about pro speakers equipment, its usage, and its complexity. The staff educates customers about these products and helps them select appropriate products.

Recent Developments

• January 2023- Mustard, an Indian lifestyle electronics manufacturer, launched the Mellow Pro, a mobile wireless party speaker with 80 watts of audio strength and an integrated light show function that promises to turn any space into a dance floor.
• February 2023- Aiwa India introduced three new audio products: the Aiwa MIX- 440 Enigma Beta, the RS-X 100, and the RS-X 150 Natsukasii Pro. The three speakers belong to the brand's "Luxury Acoustics" range, which caters to audiophiles' demands for exclusivity, luxury, and superior sound quality.