Analysts are forecasting a return to growth for the struggling premium audio sector, but questions remain over whether all retailers can ride out the turbulence.

Over the past 18 months, Australia’s high-end audio market has been unpredictable — “topsy-turvy,” as one distributor put it — swinging from peaks to troughs as retailers battle to capture younger buyers.

Now, market intelligence firm Futuresource Consulting expects the sector to rebound after two straight years of decline, predicting global luxury audio value growth of 7% CAGR through to 2029. This follows a 4.7% drop in global volume in 2024.

According to Futuresource senior analyst Guy Hammett, the industry is not retreating from luxury audio but redefining it.

“For many, it’s less about owning the technical best-in-class product and more about how it fits into a lifestyle,” Hammett said. “Luxury audio must integrate seamlessly into design-conscious homes and connected ecosystems. It’s now a game of aesthetic integration and long-term satisfaction over rapid upgrade cycles.”

Hi-fi remains the foundation of the sector, but changing listening habits are shifting demand towards new slim standalone speakers, premium soundbars, and high-end headphones as younger consumers hunt down minimalistic and compact audio gear with Chinese brands such as WiiM gaining share in Australia.

The first half of 2025 brought a global sales rebound, but Hammett warns that new US import tariffs could disrupt momentum in the second half and into 2026. These tariffs are likely to hit entry-level luxury products hardest, as brands, jack up global prices to compensate for high US tariffs.

Several audio brands have already moved prices in recent weeks with more tipped next month ahead of the busy last quarter.

While many premium audio brands manufacture in Europe still rely on imported components — especially chips from China, tariffs are making them vulnerable to trade friction. “Tariff turbulence and retaliatory measures are expected to dent overseas demand for US-made products,” Hammett noted.

For brands hoping to thrive, Hammett says the key lies in aligning with broader lifestyle trends and evolving perceptions of “premium.”

Futuresource predicts the market will be worth US$3.9 billion globally by 2029, with most categories enjoying healthy growth as the shift toward high-end offerings continues.