Market research company SNS Insider has forecast that the home audio equipment market will reach A$3.74 Billion By 2032, up from approximately A$2.39 billion in 2023.
The Asia-Pacific region, including Australia, dominated the market with a 36% market share in 2023.
High-quality streaming platforms such Spotify, Apple Music and Netflix have spurred the demand for better audio devices including soundbars, wireless speakers and home theatre systems, and will therefore support the home audio market growing at a CAGR of 5.15% from 2024-2032.
Audio streaming giants are also attracting millions of new users each month. Spotify gained 14 million total monthly active users (free and paid) in the third quarter of 2024 to reach a total of 640 million. Its premium subscribers reached 252 million.
Another contributing factor to that growth cited in the report is smart home technology which has led to a growth in demand for voice-controlled audio systems.
Manufacturers are responding by developing products with superior audio quality that are compatible with smart home systems, offering users connectivity options such as Bluetooth and Wi-Fi for easy streaming and control.
Home audio speakers and systems dominated the home audio equipment market in 2023, holding a 37% market share.
The segment included individual speakers and multi-channel systems and some of the brands found to be leading in this category included Bose and Sonos.
The Home Theater in-a-Box (HTIB) category meanwhile was the fastest-growing segment from 2024 to 2032.
HTIB systems are popular for their convenience, ease-of-setup and affordability with the likes of Sony and Samsung offering plenty of options that proved popular with audio enthusiasts.
As for technology, the wireless sector led the home audio equipment market with a 55% share in 2023. Amazon and Apple were popular contenders in the category with speakers such as Echo and HomePod, which integrate with other smart devices.
The wired sector is expected to grow faster from 2024 to 2032. Wired connections are generally regarded as offering superior sound quality and more reliable connections.
While the report cited Sonos, Bose, Sony, Yamaha and Bang & Olufsen as some of the leading companies within the home audio market, most of the data referred to covered the 2023 period, which was before the major Sonos app debacle which ultimately led to its CEO Patrick Spence stepping down earlier this month.
Last May, Sonos released an app that was riddled with bugs and heavily criticised by users. Its app experience has overshadowed the release of some its products too.
