Audio And Video Equipment Market Definition
The audio and video equipment market consists of sales of audio and visual (or video) equipment by entities (organizations, sole traders and partnerships) that manufacture audio and video equipment used for home entertainment, musical instrument amplification, motor vehicles, and public address. Audio and video equipment are also known as audio and video devices. Audio and video equipment includes televisions, speaker systems, video cassette recorders, stereo equipment, household-type video cameras, jukeboxes, and amplifiers for musical instruments and public address systems.
Audio And Video Equipment Market Size
The global audio and video equipment market reached a value of nearly $160.4 billion in 2018, having declined at a compound annual growth rate (CAGR) of -1.86% since 2014, and is expected to marginally decline at a CAGR of -0.05% to nearly $160.1 billion by 2022.
Growth in the historic period resulted from the rise in disposable incomes, increased internet penetration, increased popularity of audio and video broadcasting, high investments in electronic product manufacturing, and growth in e-commerce for consumer electronics. Factors that negatively affected growth in the historic period were changes in consumer preferences.
Going forward, economic growth, technological advances, growing demand and shrinking life cycle of consumer electronics will drive growth. Factors that could hinder the growth of the audio and video equipment market in the future include increasing interest rates, shrinking product lifecycles, and changing regulations.
Audio And Video Equipment Market Drivers
The key drivers of the audio and video equipment market include:
Growing Demand For Wireless Audio Devices And Smart TVs
The audio and video equipment market is expected to be driven by growing demand for wireless audio devices and smart TVs. The demand for wireless audio devices is growing rapidly due to changing consumers’ behavior in media consumption and increasing popularity of mobile devices. Consumers are increasingly using their mobile devices, laptops and tablets to play audio on speakers wirelessly, which is driving the growth of Wi-Fi and Bluetooth connected speakers. Also, growing demand for smart TVs will be driven by the rising consumer preference for built-in smart functions in increasing internet penetration and personal devices. Companies such as Samsung, Sony, LG and Bose are launching wireless audio products and smart TVs.
Audio And Video Equipment Market Restraints
The key restraints of the audio and video equipment market include:
Shrinking Product Life Cycles
The lifespan of consumer electronics products is getting shorter. This is expected to hinder the growth of the electronic products manufacturing industry in the forecast period. This can be attributed to rapid changes in technology and consumer preferences. For example, European consumers are upgrading to larger TV sizes, even though more than 60% of replaced televisions were still functioning in 2012. In Europe, the average age for a TV being replaced was only 5.6 years in 2012, and it is expected to decline further. To meet the consumer demand, electronic products manufacturers are required to invest frequently in the research and development of new products as the life cycle of these products keeps decreasing. Short product lifecycles coupled with the rising costs of new product development will act as a restraint on the audio and video equipment market.
Audio And Video Equipment Market Trends
Major trends influencing the audio and video equipment market include:
Growing Demand For Smart TVs
The demand for smart TVs is being driven by the rising consumer preference for built-in smart functions in personal devices, and increasing internet penetration . A smart TV combines the features of televisions and computers, and comprises a television set with integrated functions for internet use. Smart TV users are also offered direct access to streaming services such as Netflix and Amazon Prime Video. To capitalize on this trend, television manufacturers across the world are entering the smart TV market. According to an IHS Technology report, 48.5% of televisions shipped globally in 2016 were smart TVs, and the number is estimated to reach 134 million by 2020.
Growing Adoption Of Wireless Audio Equipment
The demand for wireless audio equipment market is increasing rapidly due to the increasing popularity of mobile devices and changing media consumption behavior of consumers. Consumers are increasingly using mobile devices, tablets and laptops to wirelessly play audio on speakers. Such consumer behavior is driving the growth of Wi-Fi and Bluetooth connected speakers. To capitalize on the growing popularity of wireless audio equipment, manufacturers such as Samsung, LG, Sony, Bose, Denon, DTS and Qualcomm are also launching wireless audio products or platforms. Popular Wi-Fi audio equipment include Sonos Wi-Fi speakers, Bose’s SoundTouch system, Amazon’s Echo speakers.
Opportunities And Recommendations In The Audio And Video Equipment Market
Opportunities – The top opportunities in the global audio and video equipment market will arise in the video equipment segment, which will gain $2.8 billion of global annual sales by 2022. The global audio equipment market segment will contract by $3.1 billion, however, it will grow in terms of volume sales. The top opportunities in the global video equipment market will arise in the television segment, which will gain $8.9 billion of global annual sales by 2022. The market for video players and video cameras will contract by $2.0 billion and $4.1 billion respectively, but will grow in terms of volume sales. The top opportunities in the global audio equipment market will arise in the microphones segment, which will contract by $0.02 billion by 2022, but will grow in terms of volume sales. The market for amplifiers, loud speakers and sound bars, and music players will also grow in terms of volume sales. The audio and video equipment market size will gain the most in China at $3.63 billion.
Market-trend-based strategies for the audio and video equipment market include investing in innovative technologies, a focus on the high-volume production of smart TVs, manufacturing vinyl record players on a small scale, launching wireless audio equipment and ultra HD televisions. Player-adopted strategies in the audio and video equipment industry include developing advanced audio and video technologies through research and development, and company acquisitions, strengthening market position by developing innovative and premium TVs, integrating core competencies in audio and video technologies, develop new products and through acquisitions.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends that audio and video equipment companies consider focusing on IoT enabled devices, ultra HD televisions, launch true wireless audio devices, expand in emerging markets, leverage e-commerce to maximize reach and revenues, adopt premium pricing in emerging and advanced countries and provide competitively priced offerings in low-income countries to reach new users.
Audio And Video Equipment Market Segmentation
The audio and video equipment market is segmented by type of equipment, by end-use and by geography.
By Type Of Equipment-
The audio and video equipment market can be segmented by type of equipment
The video Equipment market can be segmented into Television, Video Cameras, and Video Players.
The Audio Equipment market can be segmented into Music Players And Other Audio Devices, Loudspeakers And Sound Bars, Microphones, and Amplifiers And Mixers.
The video equipment market was the largest segment of the audio and video equipment market, accounting for 78% of the total in 2018. Going forward, the fastest-growing segments in the audio and video equipment market will be video equipment, where growth will be at CAGR of 0.6%.
- a) Video Equipment
- b) Audio Equipment
The audio equipment market and video equipment market are segmented at global level type of end-use into
By Geography- The audio and video equipment market is segmented into
Asia Pacific was the largest region in the global audio and video equipment market, accounting for 29.9% of the total in 2018. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the audio and video equipment market will be Africa and South America.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Audio And Video Equipment Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Samsung Electronics Co. Ltd
- • Sony Corporation
- • LG Electronics
- • TCL
- • Panasonic
- • Bose Corporation
- • Harman International Industries, Inc.
- • Pioneer Corporation
- • Klipsch, LLC
- • MartinLogan, Ltd.
- • Polk Audio, Inc.
- • Amphion Loudspeakers Ltd.
- • Audison
- • Behringer
- • Robert Bosch GmbH
- • d&b Audiotechnik
- • Dynaudio A/S
- • Medion AG
- • Focal-JMLab
- • Martin Audio Ltd.
- • Bowers & Wilkins
- • Celestion
- • Gale
- • KEF
- • PMC Ltd.
- • LG Electronics Inc.
- • Panasonic Corporation
- • Samsung Electronics Co., Ltd.
- • Godrej Group
- • Koninklijke Philips N.V.
- • TCL Corporation
- • Hong Kong Skyworth Digital Holdings Co., Ltd.
- • Haier Group Corporation
- • SVA Electron Co. Ltd.
- • Sichuan Changhong Electric Co., Ltd.
- • Xiaomi Corporation
- • Nanjing Panda Electronics Co. Ltd.
- • Hisense Co., Ltd.
- • Sony Corporation
- • Toshiba Corporation
- • Denon Corporation
- • JVC
- • Foster Electric Co., Ltd.
- • Sansui Electric Co.. Ltd.
- • Sharp Corporation
- • Duntech
- • Whatmough
- • Orion Electronics Ltd.
- • ZR Speaker Lab
- • Flex Audio Solutions
- • H-Buster do Brasil Indústria e Comércio Ltda.
- • AOC International
- • Philco International