The high cost of advanced home audio systems isn’t doing much to dampen growth in the Global Home Audio Market, which is still projecting a 16.98 percent CAGR from 2014-2018.
According to a recent report from TechNavio, people are still clamoring for the latest and greatest in consumer electronics like speaker systems, players and home theatres. This demand is being boosted by new developments, such as wireless streaming on Wi-Fi- or Bluetooth-enabled devices like speakers and soundbars. Not only are these devices convenient, but they also put out great sound.
“Numerous vendors in the market are developing their existing products with new technologies to improve sound quality and hearing experience,” says Faisal Ghaus, Vice President of TechNavio.
“Technologies such as SRS, noise cancellation, extra bass, and Dolby Digital sound provide an enhanced listening experience to consumers. Recently, DTS, an audio technology developer, included its trademark DTS technology in its Headphone X for recreating the sound of specific listening environments.”
Consumers Shelling Out for Big Sound
But how much are consumers willing to pay for a great audio system?
A lot, as it turns out.
According to TechNavio, the average price of a home theater is US$450-$550, a soundbar is US$580-$630, and a wireless sound system can run you US$600-$700.
“To improve product and brand awareness, vendors spend a lot of money on R&D and brand-building strategies that involve celebrity endorsements, increasing the overall cost of the product,” says Ghaus.
And often, this isn’t just a one-time investment. Anyone who’s really techno-savvy and wants to keep on top of the latest trends in home audio might be looking at updating their systems every few months, as manufacturers innovate and release new products, in order to keep pace with developments in technology.
This poses a tricky situation for consumers and manufacturers alike, since your average Joe consumer obviously can’t afford to update his home theatre every six months. Likewise, smaller vendors in the market can’t keep pace with larger organizations and tend to fall behind, technology-wise.
But despite these challenges, the market is still looking strong thanks to some nifty advances in technology. First of all, smart homes—which connect consumer gadgets through the network so that they can interact with each other— are becoming all the rage. In a smart home, a user’s home audio system could be controlled remotely through their smartphone (for example), or could wirelessly connect with a projector to achieve a theatre effect.
Additionally, a lot of pay-per-use, cloud-based services, like Rdio, Netflix and Spotify are popping up. These allow users to access videos and music online legally, and they’re portable, enabling subscribed users to access digital content stored in remote servers irrespective of the devices they use. Vendors in the home audio market are enthusiastically jumping on the cloud bandwagon, and racing to offer advanced home audio devices that can take advantage of all this online content.
To keep an eye on this, and other exciting consumer technology markets, visit www.TechNavio.com!
Cover Photo Courtesy of JVCAmerica via Flickr (cc)
