The Hi-Fi system market is projected to grow at a CAGR of 5.91% during the forecast period to reach US$18.627 billion by 2027, from US$12.465 billion in 2020.
High fidelity (commonly abbreviated as Hi-Fi or HiFi) refers to the high quality of audio rendering. High-fidelity equipment usually has very minimal or no audible noise or distortion, producing high clarity and pleasant-sounding audio. Hi-fi audio systems are extensively used in the automotive sector, to provide a high-quality audio experience for the user.
The global Hi-Fi system market is expected to grow substantially, mainly due to its increasing adoption in the automotive industry. The prevalence of smart home devices has also increased the demand for Hi-Fi systems, leading to an increase in the market size. The Asia Pacific region has been reported to have the largest market share, due to the rapid developments in the automotive sector. The Asia Pacific region has also noticed the highest growth rate in the sector and is expected to continue leading the market in the forecasted period.
Developments In smart home technology
Hi-Fi systems act as a better alternative to traditional audio systems since they provide better-sounding audio with enhanced clarity and minimal distortion. Smart home technology has reported rapid developments in the sector, which have led to a surge in the demand for the Hi-Fi system market.
Sonos recently announced that it is joining the Connectivity Standards Alliance, which created the Matter standard. The Matter standard is designed to provide a unified platform for smart home devices, which allows other smart home devices to work together. Other members of this alliance include Google, Apple, Ikea, Samsung, Amazon, and Oppo.
Sony previously launched its new 360 Reality Audio wireless speakers and video streaming service. The speakers are designed to provide an immersive audio experience for the user, creating a 360-degree surround sound effect. The speakers are certified for Hi-Res audio and can also pick up voice commands, enhancing the smart home experience.
Smart home technology has been a new market trend among people. With the developments in smart home technology and the advancements in hi-fi audio systems, the hi-fi system market is expected to rise.
Increasing Automotive Developments
The automotive industry has seen numerous advancements in the field of audio and infotainment systems. The Hi-Fi systems market has reported rapid development and a surge in demand owing to this reason.
Dolby, an American audio devices manufacturer, recently announced its partnership with Cinemo, a global automotive parts manufacturer. Dolby aims to achieve its world-class Dolby Atmos immersive audio interface in the automotive industry, to ensure that car drivers experience the best audio output. Cinemo has also provided infotainment systems and displays in higher-end luxury cars and hopes to provide the best music experience in vehicles with this partnership.
Harman Kardon released a concept of its new Live Interactive Virtual Experience (L.I.V.E) platform to deliver an immersive audio experience in the automotive sector. Harman said that it would use 5G technologies to stream live performances in cars, mobile phones, and smart devices. The users would also be able to interact with the artists in the form of song requests or voting. Additionally, Harman also revealed its new JBL speaker-mounted headrests, to provide individual audio experiences for everyone.
According to OICA, global vehicle sales for the year 2021 were more than 82 million units, which was about 4 million more than the previous year. Out of the total number, more than 56 million units were sold as passenger cars, which is the biggest market for Hi-Fi audio in the automotive sector. With the ever-increasing automotive market and the significant developments in the audio sector,
Electricity has been facing a constant global demand worldwide, and countries have been finding it difficult to keep up with this energy demand. The energy consumption for standby devices has been a major concern for governments worldwide. According to the European Commission, the European citizens pay almost EU€ 15 billion (US$ 15.81 billion) for standby electricity consumption of devices such as TVs, DVDs, Hi-Fi systems, modems, etc. Hi-Fi systems have been known to consume about 26 kWh on standby annually. With this increasing standby consumption, it becomes difficult for energy companies to keep up with the demand. With this increasing energy consumption, and with the increasing electricity prices, the Hi-Fi system market may face a decrease in demand.
The COVID-19 pandemic resulted in a slowdown in the overall market’s sales. Since most automotive companies were closed, owing to the strict lockdown regulations implemented by most countries, the Hi-Fi system market faced huge losses. However, as countries have started to lift their lockdown regulations, the market has been flourishing. The Hi-Fi system market has reported a significant increase in demand in 2020/21. With most industries going back to normal production processes, the Hi-fi system market is expected to rise.
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the Hi-Fi system market size by 2027?
A1. The Hi-Fi system market is projected to reach a total market size of US$18.627 billion in 2027.
Q2. What is the size of the global Hi-Fi system market?
A2. Hi-Fi System Market was valued at US$12.465 billion in 2020.
Q3. What are the growth prospects for the Hi-Fi system market?
A3. The global Hi-Fi system market is projected to grow at a CAGR of 5.91% during the forecast period.
Q4. Which region holds the maximum market share in the Hi-Fi system market?
A4. The Asia Pacific region has been reported to have the largest share in the Hi-Fi system market due to the rapid developments in the automotive sector.
Q5. What factors are anticipated to drive the Hi-Fi system market growth?
A5. The global Hi-Fi system market is expected to grow substantially, mainly due to its increasing adoption in the automotive industry.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. HI-FI SYSTEM MARKET, BY PRODUCT TYPE
5.1. Speakers and Soundbars
5.2. Blu-Ray Players
5.3. Network Media Players
5.4. DVD Player
6. HI-FI SYSTEM MARKET, BY CONNECTIVITY
7. HI-FI SYSTEM MARKET, BY APPLICATION
8. HI-FI SYSTEM MARKET, BY GEOGRAPHY
8.2. North America
8.3. South America
8.4.3. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.5.3. South Africa
8.6. Asia Pacific
8.6.3. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrative
9.3. Mergers, Acquisition, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.1. Bose Corporation
10.2. Panasonic Corporation
10.3. Yamaha Corporation
10.4. Sony Corporation
10.5. Koninklijke Phillips N.V.
10.6. Bowers and Wilkins
10.7. Harman International
10.8. Chord Electronics
10.9. LG Electronics
10.10. Samsung Electronics
Koninklijke Phillips N.V.
Bowers and Wilkins
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