Home Entertainment Devices Market Overview:
Home Entertainment Devices Market was valued at $176,098 million, and is expected to reach $294,969 by 2022 years, supported by a CAGR of 6.9%. Home entertainment devices include products and systems used in domestic or personal context. The home entertainment market includes several consumer electronic products such as television sets, video players & recorders, audio equipment, and gaming devices. Over the past few years, there is a significant rise in consumer investments in entertainment products mainly due to the increase in disposable income and development of innovative entertainment solutions from manufacturers.
The market growth for entertainment products witnesses substantial growth due to increase in digitization of electronic goods, rapid innovations in existing products, decline in prices of entertainment products, and increase in tech-savvy urban population in developing countries. However, the market growth for these products is mitigated by increase in consumer shift toward mobile platforms and consumer apprehensions due to adverse effects on health from audio equipment and wireless devices.
The major players profiled in the report are Sony Corporation, Apple Inc., Panasonic Corporation, LG Electronics Inc., Samsung, Bose Corporation, Sennheiser Electronic GmbH & Co. KG, Microsoft, Koninklijke Philips N.V., and Mitsubishi Electric Corporation.
The global home entertainment devices market is segmented based on product type, connectivity, and geography. Based on the product type, the market is divided into audio devices, video devices, and gaming consoles. The audio devices market includes home theatre in-a-box (HTiB), audio systems, home radios, sound bars, and headphones. The video devices segment comprises televisions, Blue-ray & DVD players, projectors, DVRs, and streaming devices. In the year 2015, the video devices segment dominated the market accounting for $157,707 million. The video devices division was majorly dominated by the television segment. The market growth for televisions is supported by growth in customer demand for smart TVs. Smart TVs presently make up only small portion of overall sales, the adoption of these devices is expected to grow with increase in customer demand for web-based content.
Based on the mode of connectivity, the market was segmented into wireless and wired devices. Wireless devices can refer to a setup that simply has a set of wireless surround sound speakers to a system that incorporates wireless home networking. They also have inbuilt LAN devices that allow users to access the Internet and provide the benefits of networking in a cable-free environment. The market by connectivity was dominated by wired devices segment, and accounted for $131,573 million in 2015. Wireless devices are expected to grow at a faster CAGR of 9.8% and reach $104,078 million by 2022. The market for wireless devices is driven by advancements in Internet, TV, and other application technologies.
By geography, the market is analyzed across four regions, namely, North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries. Asia-Pacific was the most dominant geographical market for home entertainment devices in 2015. This region is largely driven by the growth in disposable income and tech-savvy urban population from major countries such as China and India. Asia-Pacific is estimated to grow at a CAGR of 7.9%.
Home Entertainment Devices Market Segmentation
Top Impacting Factors for Global Home Entertainment Devices Market
Rise in disposable income:
Entertainment products are considered to be luxury goods, which differ from necessary products for daily usage of consumers. The performance of home entertainment equipment industry is directly tied to growth in per capital disposable income. Over the last decade, the disposable personal income has increased by 4% year-on-year and is expected to further grow worldwide during the forecast period. This increase in disposable income is expected to affect the market positively by rendering individuals to spend more on luxurious products.
Development of connected innovative products:
The integration of information technology with innovation has revolutionized entertainment products. The smart products are made available by vast improvements in processing power and device miniaturization. Developments of smart connected products provide expanded opportunities for new functionality, greater reliability, high product utilization, and capabilities, which exceed the boundaries of traditional products. Over the past few years, there is a significant consumer shift toward these smart and connected products with the expansion of digital technology and wireless network connectivity. This change in consumer preference is expected to impact the market positively.
Decrease in prices of entertainment products:
Decrease in prices of home entertainment products has a positive impact on the growth of the market. Despite the efforts of major players in the market to introduce innovative products, the prices for these devices have collapsed and then stagnated at a low level for several years. The decrease in price trend was due to competition from countries with low manufacturing costs. Major players in the market witness increase in pressure with respect to their profit margins. To sustain completion of products from low cost manufacturing regions, key market players are continuously developing innovative offerings and as the technology gets more advanced, the prices drop and products get better.
Consumer shift to alternate platforms:
The rise in penetration of smart phones significantly impacts the market for televisions and gaming consoles. Over the past few years, mobiles have become the first screen of choice for customers. Customers spend more time on mobile devices than watching their TVs. The increase in penetration of mobile TV also has a negative impact on the television market. The gaming console industry faces numerous challenges from PC gaming, mobile gaming, and other alternative gaming platforms. The popularity of smartphones and tablets has negatively impacted the gaming market with increase in number of consumers preferring these devices over traditional gaming consoles.
The study provides an in-depth analysis of the global home entertainment devices market, with current trends and future estimations to elucidate the imminent investment pockets.
The report provides information regarding key drivers, restraints, and opportunities with a detailed impact analysis.
Porters Five Forces Model illustrates competitiveness of the market by analyzing various parameters such as threat of new entrants, threat of substitutes, and strength of the buyers and suppliers operating in the market.
The value chain analysis signifies the key intermediaries involved and elaborates their roles and value additions at every stage.
The quantitative analysis of the market from 2014 to 2022 is provided to elaborate the market potential.
Home Entertainment Devices Market Segmentation:
By Product Type
Home theatre in-a-box (HTiB)
DVD & Blue Ray players
Digital video recorders (DVR)
Rest of Europe
Rest of Asia-Pacific
Key companies profiled in the report
LG Electronics Inc.
Sennheiser Electronic GmbH & Co. KG
Koninklijke Philips N.V
Mitsubishi Electric Corporation
Other companies mentioned in the report
The Home Theater Company
ACCUSTIC ARTS Audio GmbH
Accent Speaker Technology, Ltd.
Ayre Acoustics, Inc.
Ars Aures Audio