Sales of home entertainment devices to grow 6% until 2029

The global home entertainment device market is set to grow at a CAGR (Compound annual growth rate) of over 6 % through the forecast period (2019-2029), according to a new Fact.MR report.

This increase in growth can be largely attributed to a growing demand for high quality, innovative, connected, and intelligent entertainment devices in home settings, which has come about with rise in standard of living, the proliferation of high net worth individuals and changes in consumer lifestyles.

Further, the frequent development of new, but related technologies and innovative products, coupled with a decline in the prices of home entertainment devices are also being considered as drivers of growth for the worldwide market.

While audio devices are the fastest-growing segment in home entertainment devices, with a CAGR of more than 7 %, video devices continue to hold a substantially larger volume in market share and are expected to continue their dominance through the forecast period, growing 1.8X.

Offline retail accounts for majority of the home entertainment devices market share at 72.8 % and is expected to display a healthy CAGR of more than 5 %, projected to grow 1.7 x. However, the online distribution channels for home entertainment devices is expected to display a substantially higher rate of growth.

North America dominates the market share accounting for more than one fourth of the overall volume of home entertainment devices. However, cumulatively, countries in the Asia Pacific region are displaying higher CAGRs owing to growth in urban populations and standards of living and will grow 2.3 x during the forecast period.

DVD players have come on top as the most popular home entertainment devices with more than 45 % of households estimated to have purchased at least one such unit. Other popular devices in the field include Blu-ray players, and high end gaming consoles.

“Increasingly large amounts of high-quality and varied content with new technology, and the impact of new technology-related regulations will positively influence the market growth.” says the senior analyst.

Home entertainment devices are largely considered to be luxury commodities, and are set aside from essentials, which consumers require for their daily needs. Consequently, the rise in luxury products corresponds to a rise in disposable incomes.

In addition, integration of cutting edge connectivity tech has provided home entertainment devices intelligent capabilities. Such smart, connected home entertainment devices generate opportunities in development of superior functionality and reliability.

Home Entertainment Devices Market: Key Driving Factors
•    Rising levels of disposable incomes and expenditure on entertainment products remains a key growth driver.
•    Rapid advancements of new technologies increase the scope of new product options in the marketplace.
•    High level of competition in the home entertainment devices market is resulting in a substantial drop in product prices and a rise in sales.

The global home entertainment devices market is moderately consolidated. Major manufacturers are pushing for new product launches, acquisition of smaller competitors, and collaborations with tech developers to bolster their position in the global market. Key players in the industry include, but are not limited to Microsoft, Samsung, Haier, Panasonic, Philips, Sony, Bose, LG, and Sennheiser.

 

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