Sound Reinforcement Market

Market Overview

The global sound reinforcement market size was valued at USD 8.30 billion in 2022. It is estimated to reach USD 11.15 billion by 2031, growing at a CAGR of 3.34% during the forecast period (2023–2031). The growth of bars and pubs had a substantial impact on the generation of extra income for the sound reinforcement business.

A sound reinforcement system combines various equipment, such as microphones, pro speakers, audio mixers, audio signal processors, and power amplifiers. This system is designed and engineered to capture, enhance, and amplify the live or pre-recorded sound and distribute it over a large area to an audience. It aims to deliver amplified sound to a larger or distant audience while retaining the existing audio quality and ensuring that the sound is not directed to non-listened areas. It also transmits audio to remote locations through AV conferences, recording, and streaming.

Market Dynamics

Market Drivers

Rising Number of Exhibitions, Conferences, and Seminars

The increasing number of global exhibitions, conferences, and seminars will drive the demand for pro AV solutions and sound reinforcement equipment worldwide. Exhibitions have come full circle as a marketing tool, pivotal in showcasing skills and works of art, demonstrating products, driving innovations, fine-tuning strategy, and gathering data. Globally, about 4.1 million companies participate in trade exhibitions, which are further attended by about 283 million visitors annually.

Moreover, 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. In the coming years, companies in emerging markets and developing economies are expected to go global and progress rapidly in new sectors. This will lead to a spike in B2B marketing spending in specific markets and create new areas of revenue for the market.

Additionally, the world has witnessed increased academic conferences, workshops, and seminars. There has also been an increase in the number of seminars, workshops, and conferences held by academics worldwide. Seminars and conferences are becoming popular for educational institutions to disseminate information to the general public on certain concerns, scientific developments, and subjects. Sound reinforcement equipment is an integral part of such events. Thus, an increasing number of such events would boost the demand for sound reinforcement products during the forecast period.

Growing Popularity of Nightclubs and Bars in Asia-Pacific

Nightclubs and bars were under lockdown restrictions, and hence, the revenue from these end-users declined in 2020. However, in late 2021, nightclubs and bars are expected to reopen; thus, the region's demand for sound systems is anticipated to increase. Bars and pubs are becoming increasingly prevalent in Asia-Pacific due to constantly shifting trends in people's lifestyles and behavior. The growing IT and BPO industries in India and other Asia-Pacific nations are transforming consumer lifestyles by increasing disposable cash, which the younger generation is willing to spend on bars and pubs.

Moreover, the nightclub industry has a significant economic influence in the sound reinforcement sector. In 2020, Singapore witnessed an increase in pubs to around 761 and 127 karaoke lounges. Melbourne had 2,840 bars in 2018, which increased to around 3,012 in 2020. Therefore, opening bars and pubs also significantly contributed to generating additional revenue for the sound reinforcement market.

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. Prior to designing, it is necessary to establish a connection with the physical aspects of space in order to accommodate any audio solutions.

Pro speaker manufacturers can beat these acoustic challenges by investing in product R&D and introducing new and innovative solutions to end-users. They can also improve after-sale services as there is a continual need for maintenance, support, and upgrades. With new technologies coming up in the market, it has become imperative for vendors to offer services for periodic maintenance and upgrades of devices such as pro speakers. Many market players find it difficult to outsource such services without their in-house service center networks. Therefore, the lack of continual equipment maintenance might lead to the product being graded as obsolete. This is a major challenge for the global pro-speaker market.

Market Opportunities

Growing Demand from Corporates, Government, and Institutions

The increasing need for audio and visual technology in governmental buildings, institutional workspaces, and business settings stimulates the global sound reinforcement industry. The business sector and institutional workplaces are progressively implementing AV equipment to improve the working environment and streamline the flow of work activities in response to a more competitive market. In a corporate setup, implementing sound reinforcement equipment, especially microphones, speakers, and other devices, and video conferencing systems have become necessary. While globalization has led to the shattering of global boundaries, international companies and conglomerates have constantly sought pro-AV solutions to ease their day-to-day activities.

Furthermore, the increasingly complex legal and competitive business environments require constant involvement and collaboration among worldwide offices. The use of pro AV solutions like microphones and speakers for external and internal communications is increasing in offices. Moreover, corporate houses run programs for the collaborative development of their executives and associates to better understand organizations' strategic goals and offer them appropriate training and development. All these factors will also lead to higher demand for sound reinforcement equipment in the coming years.

Regional Analysis

Based on region, the global sound reinforcement 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 sound reinforcement market shareholder and is anticipated to exhibit a CAGR of 2.94% during the forecast period. The strong spending power of millennials and baby boomers, increased music festival attendance, rising smartphone use, propensity for new technology, and rising urbanization are all contributing to the growth of the North American market. The US is a key market for the region's professional AV systems, sound reinforcement systems, and solutions. In addition, the market is mostly influenced by millennials, commonly called the "digital generation." They are technologically sophisticated, and the majority of them are smartphone addicts. Concert organizers have been working hard to promote the ideology of concerts and live performances among millennials in the US, who have been showing little interest in attending concerts since most believe in spending on adventure rather than buying a ticket to watch music performances.

Furthermore, companies such as Live Nation have successfully carried out such promotions to connect millennials to the live performance industry. The US has been ranked second in the global competitive index 2018−2019 after Switzerland. This index measures the set of institutions, policies, and factors that help set the country's sustainable current and medium-term levels of economic prosperity. It indicates the ability of countries to provide a high level of prosperity to their citizens. This depends on the country's ability to use available resources productively. Moreover, the value indicates a healthy economy, which aids in attracting investors, improving employment opportunities, and increasing disposable income, leading to the rise of end-users' purchasing power. This drives the demand for sound reinforcement systems among commercial end-users and would further drive the market growth of sound reinforcement equipment and solutions in the region.

Europe is expected to exhibit a CAGR of 3.74% over the forecast period. The favorable retail environment is among the main factors driving the expansion of the European market. Heavy discounting dominates the retail landscape in the nations of Western Europe. Similarly, end-users in these nations are renowned for having high annual saving ratios. For instance, the typical Western European saves over 10% of their annual income, three times higher than the typical American. This increased saving creates opportunities for consumers to purchase necessities and other durable goods. Moreover, European consumers benefit from retail discounting fuelled by retailer destocking, particularly Germans and Britons. They have the resources to do so and are prepared to spend extra on cutting-edge goods that can add value and improve comfort and convenience at home.

Additionally, increasing retail spending will fuel the demand for pro AV equipment in retail outlets and the hospitality industry in the region. The per capita disposable income growth has led to higher discretionary spending across Europe. Germany and the UK were the two major health and fitness member markets, accounting for 11.7 million and 10.4 million members, respectively, in 2020. One out of seven people in the UK goes to a fitness club. In addition, the western and eastern portions of Europe show promising potential for the expansion of fitness clubs. This drives the demand for sound reinforcement systems in the region. Fitness clubs are also an important end-user category for sound reinforcement equipment. Thus, the growth of the health and fitness industry is expected to boost market sales of sound reinforcement systems in the region during the forecast period.

Segmental Analysis

The global sound reinforcement market is segmented by product, end-users, format, and distribution.

Based on product, the global sound reinforcement market is bifurcated into microphones, pro speakers, audio mixers, audio signal processors, power amplifiers, and others. 

The microphones segment owns the largest market share and is projected to exhibit a CAGR of 3.56% over the forecast period. The global microphones market is witnessing steady demand worldwide since microphones are vastly used in many industries. Upgrades and replacements of outdated systems in developed markets mostly drive the development of the microphones industry. Similarly, developing nations with thriving economies and expanding vertical markets account for the most demand for new microphones. In the network context, microphone vendors have numerous prospects to expand. With the integration of IoT into the AV sector, numerous providers are currently conducting research in this domain.

Furthermore, mics are increasingly connected to networks like computers and laptops as the AV industry converges with IoT. This enables microphones to function remotely or across vast distances. Moreover, as university campuses become smarter, the growing adoption of IoT in the education industry enables manufacturers to investigate new sales prospects. The microphones market is also witnessing digital wireless technologies making their way into various products. With digital wireless technology comes a range of benefits, such as low voice distortion, less noise interference, increased encryption opportunity, and enhanced signal transmission reliability.

Based on end-users, the global sound reinforcement market is bifurcated into corporates, large venues and events, educational institutions, government and military, studio and broadcasting, hospitality, and others. 

The corporate segment dominates the global market and is projected to exhibit a CAGR of 3.61% over the forecast period. The corporate sector has been growing, fueling the demand for new offices worldwide. The demand for office space is anticipated to rise as the world economies improve during the projection period. The net absorption of office space decreased in numerous nations in 2020. For instance, the net absorption of office space fell by around 45% and was 25.5 million square feet. Pro AV solutions are anticipated to be more in demand during the projected period as office space demand rises. This would increase the global demand for sound reinforcement equipment in the business sector.

Based on the format, the global sound reinforcement market is divided into digital, analog/non-digital. 

The digital segment is the largest revenue contributor to the market and is anticipated to exhibit a CAGR of 3.54% throughout the forecast period. Digital devices are witnessing an increase in market proliferation worldwide. Digital sound format is mostly preferred globally and accounts for a higher market share. Moreover, 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 during the forecast period due to the higher number of connected devices and internet users worldwide.

Based on distribution, the global sound reinforcement market is divided into retail (AV system integrators, pro audio and electronic stores, pro audio dealers and distributors) and online stores. 

The online stores segment is the largest revenue contributor to the market. Online sales accounted for a 30−35% share of the overall revenue in the global market. These are shops that provide things for sale online. This section covers online merchants, including Flipkart, Amazon, eBay, SoundBroker, American Musical, Organgeaudio, and Alibaba. Amazon.com, eBay, Alibaba, AliExpress, SoundBroker.com, Americanmusical.com, and Organgeaudio.co.uk are just a handful of the many regional online sellers of sound reinforcement equipment.

Over the projected year, the growth in online sales is anticipated to climb by over 11% YoY. The primary factor behind this phenomenon is that online retailers offer a more extensive array of options compared to brick-and-mortar stores. Due to the ease and comfort provided by these platforms, numerous loyal customers of e-commerce services prefer to buy sound reinforcement systems online.

Recent Developments

• June 2023- Audio-Technica, a global leader in professional and personal audio technology, introduced the AT2020USB-XP Cardioid Condenser USB Microphone. The microphone provides users additional digital control with onboard automatic gain control. This feature allows users to maintain a constant microphone output level regardless of how loudly or softly they speak or sing.
• June 2023- Audio-Technica, a global leader in professional and personal audio technology, introduced the AT2040USB Hypercardioid Dynamic Podcast Microphone. Taking cues from the renowned BP40 professional broadcast microphone, the new AT2040USB microphone features a dynamic design for excellent voice capture with added USB functionality.