The global home entertainment devices market size was valued at $264,655.3 million in 2020, and is projected to reach $545,147.9 million by 2031, registering a CAGR of 6.2% from 2022 to 2031.
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 home entertainment devices, such as audio equipment, gaming consoles, and video devices witnesses’ substantial growth due to increase in digitalization 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 home entertainment devices market expansion 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.
According to the home entertainment devices market analysis, the market is segmented on the basis of type, mode of connectivity type, distribution channel, and region. On the basis of type, the market is divided into audio devices, video devices, and gaming consoles. The audio devices segment 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 2020, the video devices segment dominated the market accounting for $218,509.4 million and 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 and the adoption of these devices is expected to grow with increase in customer demand for web-based content.
On the basis of mode of connectivity type, the market is 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 benefits of networking in a cable-free environment. The wired devices segment dominated the market accounted for $182,787.6 million in 2020. The wireless devices segment is expected to grow at a faster CAGR of 8.1% and reach $204,529.5 million by 2031. It is driven by advancements in internet, TV, and other application technologies.
By Type
Video Devices segment is expected to grow at highest CAGR of 6.4% during the forecast period
On the basis of distribution channel, the market is bifurcated into offline and online. The offline segment dominated the market with highest home entertainment devices market share in 2020. This is attributed to the change in consumer preference for buying home entertainment devices. Consumers believe in testing devices before buying it, which contributed towards the growth of the segment.
Region wise, the home entertainment devices 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 2020. 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 6.8% during the home entertainment devices market forecast.
By Mode Of Connectivity Type
Wireless Devices segment is expected to grow at highest CAGR of 8.1% during the forecast period.
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 home entertainment products has a positive impact on the growth of the home entertainment devices 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.
By Distribution Channel
Online segment is expected to grow at highest CAGR of 7.0% during the forecast period.
The rise in penetration of smart phones significantly impacts the demand 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 TV. 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 negatively impacts the gaming market with increase in number of consumers preferring these devices over traditional gaming consoles. Thus, the decrease in the demand for traditional gaming consoles hinders the overall growth of the home entertainment devices market.
Key players operating in the home entertainment devices industry include 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.
By Regions
Asia-Pacific dominates the market and is expected to grow at highest CAGR of 6.8% during the forecast period.
Key Benefits For Stakeholders
- This report provides quantitative analysis of the current home entertainment devices market trends, estimations, and dynamics from 2022 to 2031, which assist to identify the prevailing home entertainment devices market opportunities.
- Major countries in each region have been mapped based on the revenue contribution to the global market.
- Market player positioning of the industry has been provided to provide a clear understanding of their competitive strengths.
- Porter's Five Forces analysis is used to illustrate the potential of suppliers and buyers in the industry.
- Comprehensive analysis of factors that drive and restrict the growth of home entertainment devices is provided.
- The report focuses on the regional & global market, the key players, and market segments apart from a detailed study on the divisions and application areas.
Home Entertainment Devices Market Report Highlights
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Analyst Review
Increase adoption of home entertainment products across the globe is mainly to due to the rise in disposable incomes in developing regions of Asia-Pacific and LAMEA as well as replacement of old products with new technologically enhanced products in the developed regions of North America and Europe. Development of new and connected products boost the market growth of home entertainment devices. Companies operating in this market are launching new products and services, which increases the convergence between current products and the rise in Internet-of-Things. There is also high competition among key players in the market, which force them to focus on continuous innovation in their products and owing to this intense competition; there has been a significant decrease in the price of products. This price decrease is due to the rise in competition among market players operating in countries with low manufacturing costs of home entertainment devices.
The cost of labor installation and the expense of educating electricians in this field are becoming the most inhibiting factors. Companies are making several developments to reduce installation costs, including the rise in use of standards-based wireless technologies that allow home entertainment devices to integrate seamlessly and minimize the need for special wiring to connect them.
The global market for home entertainment is largely being driven by the rise in disposable income, lower unemployment rates, and increase in innovations. There has also been a considerable shift from the analog to digital platform and shift from modem to broadband access. The emergence of these enhanced technological products is combined with the development of power chips, new storage, and output technologies, which leads to a revolution in home entertainment. Rise in disposable incomes and standard of living combined with technical advances improves the attractiveness of products that promote the user’s quality of life. Growing incomes, technological advances, and standardization of products as well as impact of national and global regulatory measures and environmental concerns are expected to shape significant growth in the home entertainment devices market during the forecast period
The global home entertainment devices market size was valued at $264,655.3 million in 2020, and is projected to reach $545,147.9 million by 2031, registering a CAGR of 6.2% from 2022 to 2031.
The forecast period in the home entertainment devices market report is from 2022 to 2031.
The base year calculated in the home entertainment devices market report is 2020.
The top companies that hold the market share in the home entertainment devices market 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 most influencing segment growing in the home entertainment devices market report is video devices segment.
Asia-Pacific holds the maximum market share of the home entertainment devices market.
The company profile has been selected on the basis of key developments such as partnership, product launch, merger and acquisition.
The market value of the home entertainment devices market in 2020 is $264,655.3 million.
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