Sound investment, as global luxury audio market set for 7% CAGR

The luxury audio market endured a second consecutive year of decline in 2024, with global volume shrinking by 4.7%, according to the latest market report from Futuresource Consulting. The impact on revenue was less pronounced, down 2.4%, as premium pricing and a rising emphasis on brand experience helped to achieve some stability. However, with the foundations intact, Futuresurce anticipates a return to growth, underpinned by consumer confidence and product momentum. 

Premium sound, evolving context

“We’re now seeing a subtle, but meaningful, consumer shift in luxury audio,” says Guy Hammett, Senior Market Analyst, Futuresource Consulting. “For many, it’s less about ownership of technical best-in-class products, and more about lifestyle fit. Luxury audio needs to blend into design-conscious spaces and connected ecosystems. For many brands, it’s a game of aesthetic integration and long-term product satisfaction over short-term upgrade cycles. This isn’t a retreat from luxury audio, it’s a redefinition of its worth.” 

Discreet form factors, wireless capabilities, architectural installations and ecosystem connectivity are all growing areas of focus. While hi-fi separates remain foundational to the market, standalone speakers, premium soundbars and headphones are capturing share, driven by shifting consumer preferences and more casual listening habits. 

Regional shifts and tariff turbulence

The first half of 2025 saw a modest rebound in global luxury audio sales. However, Futuresource expects the introduction of US import tariffs to disrupt the market in the second half of the year and into 2026. These tariffs are set to drive up retail prices, particularly in the USA, where entry-level luxury products are likely to be most affected.  

“Although many luxury audio brands manufacture their products domestically in Europe or the USA, most rely on imported components,” says Hammett, “especially electronic chips sourced from China. As a result, production costs are rising across the board. All this tariff turbulence and reciprocation is expected to reduce overseas demand for US-manufactured products, further compounding the impact.” 

Crafting value over time

Despite the challenges, Futuresource expects the market to remain fundamentally healthy. Continued global wealth creation, combined with ongoing product innovation and portfolio renewal will result in value growth of 7% CAGR out to 2029.  

“Luxury audio isn’t all about chasing scale, it’s about ensuring significance,” says Hammett. “The brands that align with broader lifestyle values, demonstrate craftsmanship and understand how consumers define premium in 2025 and beyond will be the ones that stand out. By 2029, this market will be worth $3.9 billion, with most product categories achieving healthy growth as the market continues to shift towards premium offerings.” 

To learn more about Futuresource Consulting’s Luxury Audio Market Report or to make a purchase, please contact Luke at luke.brodin@futuresource-hq.com or book a meeting here.  

About Futuresource Consulting 
Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions. 

Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com