The audio market in Australia coupled with the custom install business is running hot and cold according to specialist audio retailers and distributors of audio gear in Australia with one month up and another down.

While 2024 was a challenging a new report from Futuresource Consulting predicts a more resilient future for the home audio market with green shoots of growth appearing.

One contributor is a move to a new generation of ‘minimalistic’ speaker designs with a younger audience demanding both good looks and great sound claim analysts.

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 a saturated market.

At a mass retail level wireless speakers are back in demand with market leader JBL set to launch several new products shortly including new party box speakers, soundbar and headphones.

According to researchers’ wireless speakers remain the overriding force in the market, despite a 7.5% decline in 2024.

Smart speakers, which account for the largest share of wireless speaker shipments, struggled as major tech vendors pulled back on investment with uncertainty around the impact of Trump Tariffs set to slow down the release of new products.

the growth market which is dominated by the Harman owned JBL is Bluetooth party speakers with this category growing by more than 26% last year as consumers embraced outdoor and beach speakers.

As for Soundbars which have been the mainstay of home cinema, this market shipments slip by 7% in 2024, reflecting the hangover from pandemic-era purchases.

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, JBL Bose and Sony continue to lead the way with Chinese brands Hisense and TCL who are growing share in the TV market now selling price completive soundbars which is putting pressure on traditional soundbar suppliers.

The Chinese brands are also gaining ground through aggressive pricing strategies and strategic marketing campaigns.

Hi-Fi systems and AV receivers are struggling with the younger generation still trying to work out the reason for a receiver.

Last year the Hi-Fi systems market fell by 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.

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 stabilization in premium categories.

This is due to consumers continuing to favour high-quality audio experiences, particularly when a consumer is stepping up in their choice of sound system.

“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 prioritize 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.”

To learn more about Futuresource Consulting’s Home Audio Market Worldwide Outlook report or to make a purchase, contact [email protected] or visit Futuresource Consulting.