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Home Entertainment Devices Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global home entertainment devices market was valued at USD 206.2 billion in 2022 and is expected to grow at a CAGR of 5.3% from 2023 to 2030. The market is driven by the growing demand for high-end home theater systems and soundbars to improve the audio and visual experience of the home entertainment system. The growing demand for home entertainment systems due to the increasing disposable income of consumers, rising urbanization, and a growing number of working-class couples are also driving the market. Moreover, the integration of internet-based technologies into home entertainment systems is anticipated to be a major factor driving market growth.
Furthermore, the increasing demand for smart home entertainment systems is expected to drive the market growth. Smart home entertainment systems are voice-enabled and can be integrated with other devices for convenience. For instance, in November 2021, Samsung launched the Neosmart speakers with Alexa and Google Assistant support. These speakers have been designed to deliver a wide range of sound and can be connected to other Alexa and Google Home devices.
The increasing demand for wireless home entertainment systems is also driving the market growth. Wireless home entertainment systems provide improved sound quality with better connectivity to multiple devices. They also eliminate the need for cables and wires. For instance, in May 2021, Sony unveiled its HT-G700 soundbar with Dolby Atmos support, which is a wireless home entertainment system.
The rising demand for streaming services such as Netflix, Amazon Prime, and Hulu is driving the demand for streaming devices, such as media streamers. Media streamers are popular among consumers as they provide access to different streaming services, offer convenience, and eliminate the need for physical media. Furthermore, the increasing demand for gaming consoles and virtual reality (VR) headsets is also driving the market growth. For instance, in April 2021, Microsoft launched the Xbox Series X and Xbox Series S gaming consoles, which come with advanced features and improved visuals.
The increasing demand for home theater systems, soundbars, and streaming devices is anticipated to drive the market in the coming years. The growing popularity of these products combined with the rising number of online sales channels is expected to drive the market further. Furthermore, the increasing adoption of these products in commercial spaces, such as pubs, restaurants, and clubs, is expected to offer lucrative growth opportunities for the market.
Product Insights
The smart TV segment is anticipated to be the largest home entertainment devices segment. This is attributed to the increasing number of households shifting towards digitalization and adopting advanced technology. Furthermore, rising disposable income, advancements in the technology, availability of various digital content platforms, and the ongoing trend of cord-cutting are some of the key factors driving the growth of the smart TV market. According to an article published by GfK in April 2019, around 80% of the population in the U.S. owns a smart TV.
The gaming consoles segment is expected to expand at a significant CAGR during the forecast period. This is attributed to the increasing demand for gaming consoles, owing to the rising popularity of video gaming and the introduction of various interactive gaming consoles. Furthermore, increasing technological advancements such as 4K display resolution, virtual reality, and advanced gaming consoles are driving the demand for gaming consoles. According to an article published by Statista in February 2020, the global gaming console market revenue was valued at USD 34,937.7 million in 2019 and is estimated to reach USD 43,831.7 million by 2024.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the major share in the home entertainment devices market in 2022. The growth of this segment is attributed to the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase home entertainment devices. According to a survey by YouGov in 2020, nearly 43% of consumers prefer to shop for home entertainment devices from supermarkets & hypermarkets due to the availability of wide variety and brands to choose from.
The online segment is anticipated to expand at the highest CAGR of 12.7% over the forecast period. The young population is inclined towards online shopping due to its convenience and cost-effectiveness. Online retailers offer discounts and promotional offers to attract customers and provide them with an easy and convenient shopping experience. For instance, in June 2021, Amazon launched its own streaming device, the Fire TV Stick, to enhance its product portfolio in the home entertainment devices market. The device is available in various countries, including the U.S., U.K., Germany, India, and Japan.
Type Insights
The television segment accounted for the largest revenue share of 70.3% in the year 2022. The rapid penetration of high-speed internet services and digital technology is driving the growth of this segment. The increasing consumer preference for large-sized TVs, such as 4K and 8K resolutions, is also a key factor driving the market growth. Furthermore, the growing trend of smart TVs and the increasing demand for content-on-demand services, such as Netflix, Amazon Prime Video, and Hulu, are contributing to the segment’s growth.
The audio segment is anticipated to expand at the highest CAGR of 10.2% over the forecast period. The growing popularity of smart speakers, such as Amazon Echo and Google Home, is driving the market growth. Furthermore, the increasing demand for home audio systems, such as soundbar systems, is further driving the market growth. Additionally, the increasing demand for advanced audio systems, such as virtual surround sound systems and multi-room audio systems, is also contributing to the segment’s growth.
Regional Insights
Asia Pacific is expected to witness the highest CAGR during the forecast period. This is mainly attributed to the increased adoption of home entertainment devices in the region, owing to increasing purchasing power and the emergence of smart cities. Moreover, increasing internet penetration and the development of smart home technology are likely to boost the market in the region. For instance, in May 2021, Sony India launched the XH90 4K LED Android TV, which is equipped with intelligent picture and sound technologies and features such as Ambient Optimization and Google Assistant.
North America is expected to hold a significant share of the market owing to the presence of a large number of players operating in the home entertainment industry. The region is expected to witness significant growth due to the increasing demand for home entertainment devices, such as gaming consoles, streaming players, and digital media players. Moreover, the presence of key players, such as Apple Inc., Microsoft, and Sony Corporation, is expected to fuel market growth.
Financial Projections
In this part of the home entertainment devices business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your home entertainment devices business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a home entertainment devices business comes from the sale of products, such as TVs, audio equipment, home theatre systems, gaming consoles, and more. Other potential sources of revenue include installation services, repairs, and warranties.
Projecting Expenses
In this section, all the regular expenses related to keeping the home entertainment devices business running will be described. The list of operating expenses includes rent, wages, advertising, research & development, maintenance and repairs, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the home entertainment devices market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In July 2022, Sony Corporation launched a new home entertainment device named “Bravia 5.1” that allows users to enjoy Dolby Atmos audio experience.
– In August 2022, Samsung Electronics Co. Ltd. launched its “Q900R” series of 8K TVs in the market.
– In October 2022, LG Electronics Inc. launched its “LG CineBeam” projector that features 4K Ultra HD resolution and HDR support.
Some of the prominent players in the home entertainment devices market include:
– Sony Corporation
– Samsung Electronics Co. Ltd.
– LG Electronics Inc.
– Panasonic Corporation
– Bose Corporation
– Apple Inc.
– Vizio, Inc.
– Philips Electronics
– JVC Kenwood Corporation
– Hisense Group Co., Ltd.
Global Home Entertainment Devices Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global home entertainment devices products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Home Theater Systems
– Audio Systems
– Video Streaming Players
– Smart TV
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Emerging Technologies in the Home Entertainment Devices Market?
[A]: Technologies such as streaming media players, high-definition televisions, Ultra-High Definition (UHD) televisions, and smart home systems are some of the emerging technologies in the home entertainment devices market. These technologies are playing an instrumental role in the growth of the home entertainment devices market.
[Q]: What are the Key Drivers of the Home Entertainment Devices Market?
[A]: Increasing disposable income, growing number of households, increasing preference for smart home systems, and rising demand for high-definition televisions are some of the key drivers of the home entertainment devices market.
[Q]: Who are the Key Players in the Home Entertainment Devices Market?
[A]: Some of the key players in the home entertainment devices market are LG Electronics, Samsung Electronics, Apple Inc., Sony Corporation, Panasonic Corporation, and Vizio Inc.
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation has the potential to drive the growth of the home entertainment devices market. Manufacturers are focusing on providing innovative products in order to create a competitive advantage in the market. They are also trying to differentiate their products from those of competitors.
[Q]: Which Region Offers the Largest Opportunity for Sales of Home Entertainment Devices?
[A]: North America is expected to be the most lucrative region for the home entertainment devices market due to the increasing demand for advanced home entertainment systems in the region.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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