The consumer loudspeaker market continues to climb, achieving 7.6% year-on-year value growth last year, despite being held back by adverse economic conditions. A new report from Futuresource Consulting points to a groundswell of consumer interest in active speakers, and a desire to invest in higher end audio equipment, as significant foundations for this expansion. Yet the specialist research firm also advises caution, due to a single-digit decline in market shipments sitting alongside the phenomenal value growth.
“During the pandemic, we saw a widespread consumer refocus on the home as a haven,” says Anuja Chandrakumar, Lead Analyst, Futuresource Consulting. “Vinyl grew in popularity, home video captured new audiences, and audio streaming services became the go-to music and podcast choice for many.
“All this content action created an almost inevitable upsurge in demand for loudspeakers, and the hankering for hardware is much more than a short-term obsession. Our forecasts are signalling a period of stable value and volume growth that stretches out to 2027.”
Futuresource expects active loudspeakers to play a prominent role in market development. Commanding higher prices than their traditional passive counterparts, they will propel average selling prices higher, particularly within the bookshelf and floorstanding speaker categories.
“Active loudspeaker units currently account for 9% of the bookshelf market and 8% of floorstanding,” says Chandrakumar. “By 2023, we expect these numbers to soar to 23% and 8% respectively, with a very healthy volume CAGR of 28%. Watch out for high revenue opportunities landing throughout Europe and across Asia as well.”
Elsewhere in the segments, architectural speakers also achieved traction in 2022, and the outdoor speaker market grew in retail value by 9%. Looking to in-wall and in-ceiling, the form factor recorded double digit growth rates, with shipments rising by 10% and retail value spiking by 16%.
Due to all this activity, Futuresource anticipates a favourable future ahead, with stable market shipments across the forecast period alongside strong retail value growth of 10% CAGR from 2023-2027.
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