Home Theatre Systems Global Market Report 2024

The home theatre systems market size has grown rapidly in recent years. It will grow from $31.97 billion in 2023 to $38.28 billion in 2024 at a compound annual growth rate (CAGR) of 19.7%. The growth observed in the historic period can be attributed to increasing trends in entertainment and media consumption, higher disposable income, the prevalence of home entertainment and stay-at-home culture, the expansion of smart home ecosystems, and advancements in audio technologies.

The home theatre systems market size is expected to see exponential growth in the next few years. It will grow to $80.45 billion in 2028 at a compound annual growth rate (CAGR) of 20.4%. Forecasted growth is fueled by premium features, home design trends, streaming service demand, smart home integration, and evolving consumer preferences. Anticipated trends include compact designs, streaming partnerships, customization, soundbar expansion, and AI integration.

The home theatre systems market witnessed significant growth propelled by the rise in disposable incomes, primarily attributed to economic expansion and the growth of the middle-class population in developing countries such as China, India, and Brazil. The World Bank defines the middle class as individuals earning between $10 and $100 per day. In 2021, India's economy grew by 7.2%, and the Per Capita Income growth rate was estimated at 4.3% during 2019-20. This economic growth resulted in increased disposable incomes in emerging markets, subsequently driving the demand for home theatre systems.

The increasing availability of the internet is anticipated to further boost the growth of the home theatre systems market. Internet access has become widespread, connecting billions of computers worldwide. The growing accessibility to the internet enables consumers to stream a diverse range of online content, including movies, TV shows, music, and videos. This digital content serves as a significant driver for the demand for home theatre systems, as individuals seek to enjoy these entertainment options on larger screens with superior audio quality. According to a report by the International Telecommunication Union (ITU) in December 2021, the global internet user base reached 4.9 billion, representing 63% of the global population. Internet usage in Africa and the Asia-Pacific region increased by 24% in 2021. Hence, the increasing availability of the internet is a key factor driving the growth of the home theatre systems market.

The home theatre systems market underwent significant changes due to shifts in consumer lifestyles and preferences. The proliferation of smartphones, increased internet penetration, and advancements in social media and digital technologies prompted consumers to move away from traditional television towards new forms of entertainment, particularly online audio and video streaming services on mobile devices. This shift was particularly pronounced among millennials, leading to a decline in television viewership. As of 2020, young people increasingly turned to platforms such as Netflix and YouTube for their entertainment needs. In 2021, YouTube experienced substantial growth, generating $6.01 billion in advertising revenue during the quarter, up from $4 billion in the previous year, representing a growth rate of 49%. This growth surpassed Netflix's revenue growth rate of 24% in the same period. These changes in consumer preferences and viewing habits restricted the demand for traditional home theatre systems.

The rising popularity of cloud services is a noteworthy trend in the home theatre systems market, enabling consumers to legally access video and music content online. Video streaming platforms are increasingly leveraging cloud technologies to enhance the overall viewing experience. Unlike as the traditional use of television for video consumption, customers now prefer an access-based model, subscribing to video libraries hosted in the cloud. In response, companies within the home theatre systems market are innovating by manufacturing advanced systems that can seamlessly connect to the internet for online video access.

Key players in the home theatre systems market are actively engaged in the development of new products to cater to a broader customer base, drive sales, and boost revenue. One notable innovation is the introduction of multi-dimensional home theatre systems, surpassing traditional two-dimensional (2D) viewing and listening experiences. For example, in July 2021, Sony Electronics Inc., a leading US-based consumer electronics manufacturer, unveiled the HT-A9 home theater system. Noteworthy for its unique 360 spatial sound mapping technology, the HT-A9 employs Sound Field Optimization, utilizing two microphones in each speaker to determine speaker height and position. This positional data, in turn, enables the 360 Spatial Sound Mapping technology to generate up to twelve phantom speakers from just four physical speakers. The HT-A9 is fully compatible with Dolby Atmos and DTS,X, providing users with an immersive cinematic surround sound experience within the comfort of their homes.

In September 2021, Premium Audio Company (PAC), a U.S.-based audio solutions provider, acquired Onkyo Corporation’s home audio and video business for an undisclosed sum. With this acquisition, PAC gained approximately 75% ownership in the newly formed joint venture, allowing it to assume a leading role in overseeing all facets of Onkyo's home entertainment business. This includes responsibilities for product development, engineering, sales, marketing, and distribution. Onkyo Corporation, based in Japan, is recognized for providing home theatre systems.

Major companies operating in the home theatre systems market report are Samsung Electronics Co. Ltd.; Sony Corporation; Panasonic Corporation; LG Electronics Inc.; Toshiba Corporation; Akai Electric Co. Ltd.; Sharp Corporation; Koninklijke Philips N.V.; Pioneer Corporation; Harman International Industries Inc.; Yamaha Corporation; Bose Corporation; Bang & Olufsen A/S; JVC Kenwood Corporation; Sonos Inc.; VOXX International Corporation; Sound United LLC; Denon & Marantz Holdings Inc.; Bowers & Wilkins Ltd.; Creative Technology Ltd.; Onkyo Corporation; Klipsch Group Inc.; Emotiva Audio Corporation; Paradigm Electronics Inc.; Monitor Audio Ltd.; Meridian Audio Ltd.; MartinLogan Ltd.; Definitive Technology; GoldenEar Technology; Atlantic Technology Inc.; Audyssey Laboratories Inc.; Crystal Semiconductor Corp.; Super League Gaming; Control4 Corporation; Avegant Corp. Asia-Pacific was the largest region in the home theatre systems market share in 2023. The regions covered in the home theatre systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Primary products in the home theater systems market include home theater in a box systems (HTIB), soundbars, and component systems. HTIB typically encompasses an A/V receiver with at least five speakers and a subwoofer. These systems are distributed through online and offline channels and find applications in household and commercial settings.

The home theatre systems market research report is one of a series of new reports that provides home theatre systems market statistics, including home theatre systems industry global market size, regional shares, competitors with a home theatre systems market share, detailed home theatre systems market segments, market trends and opportunities, and any further data you may need to thrive in the home theatre systems industry. This home theatre systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the home theatre systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The home theatre systems market consists of sales of sound bars, home theatre in a box system (HTIB), and other home theater systems. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.