Turning up the heat on home audio, as market poised for recovery

The home audio market experienced another challenging year in 2024, with global volume and value both declining by 7.7%. However, a new report from Futuresource Consulting predicts a more resilient future for the sector, with recovery prospects emerging from 2026 onwards.

“Despite the dark clouds, there’s sunshine ahead,” says Kavish Patel, Research Analyst at Futuresource Consulting. “We’re seeing an industry recalibrating, where major brands are rethinking feature sets and price points to stay relevant in saturated markets. They’re also battling for share in emerging regions where first-time buyers are just discovering the joys of home audio.”

Wireless speakers remain dominant, party speakers shine
Wireless speakers remain the overriding force in the market, despite a 7.5% decline in 2024, to 138 million units. Smart speakers, which account for the largest share of wireless speaker shipments, struggled as major tech vendors pulled back on investment. Yet, the segment’s Bluetooth party speakers were the clear bright spot, growing by more than 26% last year as consumers embraced communal and outdoor audio experiences.

Developing regions such as Latin America and META continue to outperform, driven by first-time buyers and growing demand for loud, affordable, high-bass solutions.

Premium soundbar brands battle new challengers
Soundbars, the mainstay of home cinema, also saw shipments slip by 7% in 2024, reflecting the hangover from pandemic-era purchases. Yet Futuresource predicts this category will see a resurgence from 2026, driven by replacement demand and innovation in immersive audio formats.

Established brands such as Samsung, LG and Sony continue to lead the way. Meanwhile, players like Hisense and TCL are rapidly gaining ground through aggressive pricing strategies and strategic marketing campaigns.

Rough roads ahead for Hi-Fi and AV receivers
Hi-Fi systems and AV receivers remain under pressure. Hi-Fi systems contracted by nearly 15% in 2024 and are expected to see continued double-digit declines through to 2029, as consumers set their sights on more versatile wireless and smart audio solutions. AV receivers, too, saw volumes fall by more than 13%, with ongoing caution in the mid-range and low-end segments.

A gradual market stabilisation
Futuresource forecasts show that global home audio shipments will grow at a modest CAGR of 1.4% between 2025 and 2029, reaching 157 million units by the end of the decade. Retail value is expected to increase slightly faster, at a CAGR of 1.8%, reflecting some stabilisation in premium categories. This is due to consumers continuing to favour high-quality audio experiences, particularly in emerging regions where first-time ownership is on the rise.

Balancing value, experience and regional nuance
“Looking ahead, the home audio sector is entering a new chapter of cautious optimism,” says Patel. “Nimble brands that balance value and premium innovation, adapt regionally and prioritise the user experience will be best positioned to thrive in this new and evolving landscape. The challenge is to combine competitive pricing with premium audio quality, while responding to shifting consumer expectations. That is where the growth will come from.”

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 across consumer electronics, broadcast, entertainment and professional AV sectors, Futuresource helps businesses navigate complex markets and make informed decisions.

To learn more about Futuresource Consulting’s Home Audio Market Worldwide Outlook report or to make a purchase, please contact luke.brodin@futuresource-hq.com or visit here.

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