Futuresource Consulting anticipates a return to growth for the luxury audio market after a second consecutive year of decline.
The market researcher suggests factors like global wealth creation, product innovation and portfolio renewal will result in value growth of 7% CAGR (Compound Annual Growth Rate) out to 2029.
The findings come after global volume shrank by 4.7% in 2024, according to the report.
Guy Hammett, senior market analyst at Futuresource Consulting, said: “This isn’t a retreat from luxury audio, it’s a redefinition of its worth.
“For many, it’s less about ownership of technical best-in-class products and more about lifestyle fit.
“Luxury audio needs to blend into design-conscious spaces and connected ecosystems.
“It’s a game of aesthetic integration and long-term product satisfaction over short-term upgrade cycles.”
Hi-fi continues to remain foundational to the market, but shifting consumer preferences and more casual listening habits mean that standalone speakers, premium soundbars and headphones are capturing share.
While the first half of 2025 saw a rebound in global luxury audio sales, Futuresource expects the introduction of US import tariffs to disrupt the market in the second half of the year and into 2026.
These tariffs are set to drive up retail prices, particularly in the USA, where entry-level luxury products are likely to be most affected.
Hammett continued: “Although many luxury audio brands manufacture their products domestically in Europe or the USA, most rely on imported components – especially electronic chips sourced from China.
“All this tariff turbulence and reciprocation is expected to reduce overseas demand for US-manufactured products.”
For companies looking to stand out, Hammett highlights the need to reflect broader lifestyle patterns and the changing definition of ‘premium’.
He added: “By 2029, this market will be worth $3.9b (over €3.3b), with most product categories achieving healthy growth as the market continues to shift towards premium offerings.”
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