The Hi-Fi system market is expected to grow from USD 13.6 billion in 2020 to USD 17.5 billion by 2025, at a CAGR of 5.2%. The market growth can be attributed to several factors, such as a rise in demand for infotainment services, high spending on R&D by OEMs, innovations in wireless audio technology, and increasing adoption of portable devices.

Attractive Opportunities in Hi-Fi System Market

Hi-Fi System Market Dynamics

Driver: Innovations in wireless audio technology

The wireless technology has made successful inroads across all the product segments of consumer electronics, and the audio technology industry has benefitted from this. Throughout this shift toward wireless, demand for advanced sound quality continues to be the crucial parameter among audio consumers globally.

Restraint: Health issues pertaining to prolonged use of audio devices

The use of headphones for listening to music or talking over the phone affects the listening power of users. Studies have revealed that continuous exposure to loud noise via loudspeakers, headphones, etc., can damage the delicate inner ear cells and result in hearing impairment or complete hearing loss. Children and youngsters are more prone to such damages. Additionally, Wi-Fi signals can create chronic sleep problems. Some implanted medical devices use radio frequency communication for reporting the status as well as making changes in device behavior. Emissions from wireless electronic devices can interfere with the functioning of these medical devices, thereby adversely affecting the health of the user.

Opportunity: Newer, non-conventional applications of headphones

Headsets are expected to help in the measurement of vitals of the body of users and track them during their workouts. Wireless headphones can also be paired with Amazon’s Alexa voice assistant to allow wearers to control connected home electrical appliances, such as thermostats and lights, remotely through verbal commands. Companies are making efforts to offer an engaging on-the-go Alexa experience to customers by making their headphones, headsets, or earbuds compatible with Alexa.

Challenge: Delivering high-quality and synchronized audio through wireless Hi-Fi systems

Wireless audio engineers are facing the challenge of not being able to deliver high-quality and synchronized audio streams in real-time using the wireless technology. Bandwidth constraints, delays in coding, and bit errors affect the wireless audio transfer. Innovations in wireless technologies, such as Bluetooth and Wi-Fi, have provided advantages such as receiving digital audio wherever and whenever required. However, the convergence of audio with video in the spectrum of consumer devices poses quality challenges for manufacturers. The availability of full bandwidth is impractical, and the required bandwidth cannot be made available for every application.

The market for the product segment is expected to hold the largest share during the forecast period

Based on the system, the market has been divided into products and devices. The product segment, which includes speaker & soundbar, CD player, DVD player, Blu-ray player, network media player, turntable, headphone & earphone, and microphone products, has a higher market share currently and expected to grow at the higher rate during the forecast period. Of these, the speaker & soundbar segment holds the largest share of the Hi-Fi system market. Speakers and soundbars are compatible with TV sets, smartphones, music systems, gaming consoles, etc., and can be connected to them through different media sources such as High-Definition Multimedia Interface (HDMI), Bluetooth, Wi-Fi, and Universal Serial Bus (USB). Due to their portability and ease of use, wireless speakers and soundbars are getting immensely popular.

Market for automotive application is expected to register the highest CAGR during the forecast period

The Hi-Fi system market based on application is segmented into residential, automotive, commercial, and others. The automotive application is expected to register the highest CAGR during the forecast period. The growing popularity of in-car infotainment systems is expected to drive the market for Hi-Fi systems in the automotive application.

APAC expected to account for largest market share from 2020 to 2025

APAC is expected to hold the largest size of the Hi-Fi system market during the forecast period owing to large customer base and growing purchasing power of consumers. The growing popularity of wireless connectivity technology and the increasing requirement for mobility are also driving the market for Hi-Fi systems in this region. The region is witnessing increased demand for consumer electronics, such as smartphones and tablets, thereby leading to the growth of the Hi-Fi system market in the region.

Key Market Players

Some of the major players operating in the market are Samsung Electronics Co. (South Korea), Sony Corporation (Japan), Apple Inc. (US), Bose Corporation (US), Sennheiser Electronic GmbH & Co. KG (Germany), LG Electronics (South Korea), Panasonic Corporation (Japan), DEI Holdings, Inc. (US), Yamaha Corporation (Japan), Koninklijke Philips N.V. (Netherlands), Onkyo Corporation (Japan), and Sonos, Inc. (US). These players adopted various strategies such as product launches and developments, acquisitions, and partnerships to cater to the needs of the market.

Scope of the Report

In this research report, the Hi-Fi system market has been segmented on the basis of system, connectivity technology, application, and geography.

Hi-Fi System Market, by System

• Product
  • Speaker & Soundbar
  • CD player
  • DVD player
  • Blu-ray player
  • Network media player
  • Turntable
  • Headphone & Earphone
  • Microphone
• Device
  • DAC
  • Amplifier
  • Preamplifier
  • Receiver

Hi-Fi System Market, by Connectivity Technology

• Wired
  • Ethernet Cable
  • Audio Cable
• Wireless
  • Bluetooth
  • Wi-Fi
  • AirPlay
  • Others

Hi-Fi System Market, by Application

• Residential
• Automotive
• Commercial
• Others

Hi-Fi System Market, by Geography

• North America
• Europe
• APAC
• RoW

Recent Developments

• In August 2019, HARMAN, subsidiary of Samsung Electronics, launched a lifestyle audio brand in the Indian market - Infinity by HARMAN. As part of the brand launch, the company launched 11 new audio products, including six Infinity headphones, four portable Bluetooth speakers, and a multimedia 2.1 Bluetooth system.
• In May 2019, Bose Corporation launched the Headphones 700 noise-canceling headphone that redefines voice-control and mobile communication. It introduces a revolutionary new voice interface that redefines mobile communication the way Bose noise cancellation redefined mobile audio. It is built off the legendary performance of QCs to transform the most demanding environments into private sanctuaries for listening. With its exclusive innovation, the 700 isolates a user’s voice from unwanted ambient sounds.
• In January 2019, Sennheiser launched the latest members of its family of professional in-ear headphones—IE 400 PRO and IE 500 PRO. These headphones offer natural, high-resolution sound, with a secure and comfortable fit that can be custom-molded in-ears. They have a break-proof, patent-pending cable connection.

resource: https://www.marketsandmarkets.com/Market-Reports/hi-fi-system-market-208988066.html