Advancements in technology, especially in the wireless technologies have transformed the way people communicate or listen to music nowadays. There has been a huge increase in the demand for wireless audio devices such as speakers, sound bars, headphones, and network media players among others, since they allow people to have an easy control over their music with the help of Hi-Fi audio devices. The worldwide Hi-Fi system market is further expected to gain maximum traction from its increasing application in the automotive sector.
The global Hi-Fi system market which was valued at USD 10.62 Billion in 2015 is predicted to reach a value of USD 16.49 Billion by 2022, growing at a CAGR of 6.4% during the forecast period from 2016 to 2022.
Based on product, the speakers & sound bars segment held the largest market share in 2015, and is also expected to dominate the market over the forecast period as well. This growth can be majorly attributed to the increased adoption of wireless devices in the world. Moreover, the growing preference for wireless connectivity has also influenced the growth of this market in a major way.
Among applications, the residential application was the dominant market in 2015, and is also expected to be the largest market over the forecast period as well. This growth is mainly due to the wireless Hi-Fi audio products that are gaining popularity from the consumers, especially in in-home application due to innovations in technology in these products. The automotive application is predicted to gain momentum between 2016 and 2022, and is also likely to grow at the highest CAGR.
What does the geographical scenario of this market look like?
Among regions, Asia-Pacific is expected to be the largest market for Hi-Fi systems over the forecast period. It is also the fastest-growing region for Hi-Fi audio system. Increasing population, growing number of consumers for smartphones, tablets, smart homes, among others, and rapidly increasing purchasing power parity (PPP) are the main reasons for the immense growth of this market. However, the market in North America is likely to witness a steady growth, accounting for the second-largest market share. Although the market in this region is matured, it is highly sustainable, mainly due to the presence of a large number of manufacturers in this region.
What is leading the automotive application to grow at the highest rate?
The automotive application market is predicted to grow at the highest rate over the forecast period. With the increasing technology and trends, the automotive manufacturers are looking to provide wireless Hi-Fi speaker systems to cars. The luxury automotive are equipped with a fully integrated wireless Hi-Fi system and in-car infotainment system, whereas the ordinary manufacturers provide this system only in the top-end models. Increase in the overall demand for cars, including the luxury automotive, especially in the developing economies is expected to boost the demand for Hi-Fi audio devices.
What are the factors driving and hampering the market growth?
The worldwide Hi-Fi system market is witnessing steady growth, mainly due to the following factors:
- Rising demand for infotainment services like streaming music is likely to boost the demand for Hi-Fi audio systems
- Increased expenditure on R&D for wireless audio technology by OEMs
- Technological advancements in wireless audio technology
- Growing adoption of portable devices
Moreover, rising usage of wireless audio devices in the consumer sector is also expected to boost the market growth to a certain extent. Apart from this, growth of speakers & sound bars market is also expected to drive this market towards good growth ahead.
On the flip side, issues regarding the negative health effects on children and other users and operating frequency compliance for wireless Hi-Fi systems are the major factors that are likely to hamper the growth of this market. Moreover, delivering high-quality audio through wireless Hi-Fi system remains a major challenge in front of the major players in this market.
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Major players and strategies adopted by them for sustenance
Onkyo Corporation (Japan), Bowers & Wilkins (U.K.), Bose Corporation (U.S.), Panasonic Corporation (Japan), Yamaha Corporation (Japan), DEI Holdings Inc. (U.S.), and Harman International, Inc. (U.S.) among others are the key players operating in this market. These players adopted a number of strategies, such as new product developments, mergers & acquisitions, partnerships, collaborations, and business expansions in order to cater to the needs of the growing Hi-Fi system market. For instance, Onkyo Corporation, which was the leading player in the overall Hi-Fi system market in 2015, entered into several partnerships for the developing new technologies. Apart from this, Bowers & Wilkins (U.K.) is actively focusing on expanding this market through various agreements and collaborations and new product launches.