Global loudspeakers market set to grow in 2023 says new report
Sales of loudspeakers for home entertainment are expected to expand from last year’s $7.25 billion to $7.74 billion in 2023, says ReportLinker
In the recently released Loudspeakers Global Market Report 2023, the global market research and intelligence firm foresees continued growth in the loudspeakers sector this year, thanks mainly to increased spending on home entertainment products and a greater consciousness of sound quality among consumers. The report names Bose, Harman, Bowers &Wilkins, Klipsch Audio Technologies, KEF, Sonance, Yamaha, Sony, Creative Technology and Wharfedale as the industry’s major players.
Growth in 2023 and beyond
According to the new report, the global loudspeakers market is set to grow from $7.25 billion in 2022 to $7.74 billion in 2023 at a compound annual growth rate (CAGR) of 6.7%.
Despite the Russia-Ukraine conflict, which has disrupted the global economy, and the inflation impacting many markets across the globe, the loudspeakers market —including subwoofers, soundbars, wall-mounted speakers and outdoor speakers— is expected to continue its growth trajectory, the report says, and will reach $9.35 billion by 2027 at a CAGR of 4.9%.
For the study, ReportLinker has calculated values in the market as ‘factory gate’ values, or the value of goods sold by manufacturers, whether these are to other entities (including downstream manufacturers, wholesalers, distributors and retailers), or directly to end customers. The firm has also included related services sold by the creators of the goods in its market value calculations.
Considered in the report as loudspeakers are any electroacoustic transducers that convert an electrical audio signal into a corresponding sound, including soundbars and subwoofers. Subwoofers, ReportLinker points out, amplify the lowest frequencies in any audio output, such as bass guitars, pipe organs, deep voices, kick drums, and cinematic sound effects, making them more and more popular for in-home theatre entertainment as well as for automotive sound systems.
Global loudspeakers market set to grow in 2023 (Photo: Unsplash)
Based on the report’s findings, one major factor contributing to growth in the loudspeakers market is increased spending on home entertainment products along with a demand for different forms of loudspeakers, including those controlled remotely.
The study notes the trend for consumers to prefer external sound systems for home entertainment, as opposed to their TV and computers’ built-in speakers and sound systems. In addition, users are increasingly aware of and demanding with respect to sound quality, making them willing to spend more on loudspeakers.
Another element the study considers is the expanded use of wireless audio equipment, driven by mobile use. This has added to the demand for wireless audio control and is driving the growth of Wi-Fi and Bluetooth-connected speakers, the report claims. To capitalise on the growing popularity of wireless audio equipment for home entertainment, manufacturers, including Samsung, LG, Sony, Bose, Denon, DTS, and Qualcomm, are launching wireless audio products or platforms. Wireless system examples are Sonos’ Wi-Fi speakers, Bose’s SoundTouch system, and Amazon’s Echo speakers.
Beyond loudspeaker outlay, overall spending on both physical and digital home entertainment is on the rise. Citing the US-based industry association, Digital Entertainment Group (DEG), ReportLinker claims that consumer expenditure on home entertainment grew at an unprecedented rate in 2021. The total physical and digital home entertainment spending rose by 7.8% to a record $32.3 billion that year.
The ReportLinker study covers Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA and the market value within the report is defined as the revenues that companies gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency.