Hi-Fi System market is estimated to grow at a CAGR of 5.37% over the forecast period to reach US$13.116 billion by 2023, from US$9.585 billion in 2017. Hi-Fi systems provide better sound quality with accurate frequency response and low amount of noise and distortion. The advancement in technology ensures uncompromised, problem-free utilization of Hi-Fi audio devices such as soundbars, speakers, headphones, and microphones across various application segments. Growing digitalization of systems is one of the major drivers of global Hi—Fi Systems market. Booming demand for portable smart devices such as smartphones, tablets, and laptops is strengthening the demand for wireless audio products. Emerging smart home industry and mushrooming demand for Hi-Fi systems in automotive will further bolster the global Hi-Fi System market growth during the forecast period.
Hi-Fi System market is segmented by product as speakers and soundbars, blu-ray player, network media player, headphones, microphones, and others. Speakers and soundbars will dominate the global market throughout the forecast period owing to the increasing adoption of wireless devices across the globe. The advancements in Internet of Things (IoT), continuous investment in R&D and escalating demand for portable speakers is also spurring the demand for wireless Bluetooth speakers.
By application, global Hi-Fi System market is segmented as residential, commercial, and automotive. Residential application held the largest market share in 2016 and will continue its dominance throughout the forecast period. Growing global smart home market is one of the major factors behind this dominance. The advent of wireless technology has led to escalating demand for wireless Hi-Fi audio products which are significantly gaining traction among consumers for in-home applications. However, automotive application segment will witness the fastest growth during the projected period. The emerging trend of wireless Hi-Fi speaker systems in cars deployed either with the Bluetooth or IR technology is boosting the demand for these solutions. Growing demand for luxury cars with fully-integrated wireless Hi-Fi system and in-car infotainment system will also contribute to the market growth over the coming years.
Geographically, APAC region accounted for the largest share of Hi-Fi System market in 2016 and will remain at its position till the end of the projected period. This growth is majorly attributed to the rising purchasing power and increasing adoption of innovative technologies in emerging economies such as China, India, and South Korea. Increasing proliferation of mobile devices coupled with rising penetration of internet connectivity in the region will drive the demand for Hi-Fi System products, mainly headphones and microphones. Furthermore, emerging trend of smart homes will bolster the growth of Hi-Fi System market in Asia Pacific in the near future. North America will also witness a significant market growth owing to the presence of large number of key market players in the region which are aimed to provide new products to consumers.
Prominent key market players in Hi-Fi System market include Bose Corporation, Panasonic Corporation, Sony Corporation, Onkyo Corporation, LG Electronics, Bowers and Wilkins, Harman International, and others. These players are adopting various strategies such as new product launch, M&A, partnerships, and business expansion to gain competitive advantage in the global Hi-Fi System market. In 2016, Bose announced the expansion of its strategic partnership with Flex, a global leader in manufacturing under which the former has greater access to Flex’s supply-chain solutions, thereby accelerating the speed-to-market across the globe.
In this report, Hi-Fi System market is segmented by product, connectivity, application, and geography: