Report Overview

The global home entertainment device market is forecasted to grow at a higher CAGR owing greatly to the substantial increase in demand for connected devices boosting global home entertainment devices market. Additionally, Bluetooth technology is accelerating wireless audio device adoption is further accelerating the global home entertainment device market. Furthermore, the home entertainment system incorporates Internet of things (IoT), which might work as a driving force for the increase in demand of these product as there is a growing demand by the consumers to connect the gadgets with smartphones and have an overall connected smart-home, which will in-turn result in boosting the growth of home entertainment devices market during the forecast period.

Global Home Entertainment Device Market - Industry Trends & Forecast Report 2028

The global home entertainment devices market was worth USD 275.7 billion in the year 2021. The market is projected to grow at a CAGR of 6.4% from 2022-2028 (forecast period), earning revenues of around USD 424.2 billion by the end of 2028. The home entertainment industry is primarily driven by expanding urbanization and rising per capita income in countries globally. Home entertainment devices are electronic devices that allow people to listen to music, watch movies, and participate in other forms of entertainment. Audio equipment, television sets, video players and recorders, and gaming gadgets are examples of home entertainment devices. The growing penetration of smartphones and the internet has led to a growing awareness of digital technology and wireless networking, acting as key factors responsible for driving growth.

Moreover, the growing availability of these devices with advanced specifications and multiple brands increases consumers' shift to other types of entertainment devices, including smartphones. Furthermore, handheld gadgets like smartphones and tablets drive major revenues and lead to rapid growth, and consumer demand prompts manufacturers to introduce advanced gadgets at affordable prices, thereby increasing the demand for the product. The demand for children's console games connected products are among the most important growth drivers. In addition, the growing tech-savvy urban population and demand for streaming content will create new opportunities for the home entertainment market during the forecast period.

Home Entertainment Device – Overview

The global home entertainment devices segment is a specialized consumer product category comprising televisions, sound systems, DVD players, and game consoles, among several other products. The high-resolution audio and video equipment used in home entertainment systems were intended to simulate the movie theatre experience while sitting at home. With improving standards of living and increased disposable cash, these technologies are becoming essential components of every household globally. Furthermore, increasing competition among different tech companies for the manufacture of higher quality and more innovative home entertainment devices offers a significant opportunity for market growth.

Global Home Entertainment Device Market Forecast and Trends

Growth Drivers

Substantial Increase in Demand for Connected Devices Boosting Global Home Entertainment Devices Market

The advent of high-speed internet and accompanying technologies, such as voice over Internet protocol (VoIP) service on mobile phones, has altered user preferences for Internet services. As the need for internet services grows, so does the desire for connected devices at home. On-demand services encourage viewers to consume material on their mobile devices, and linked devices allow users to connect their mobile devices to TV screens for a better viewing experience. Additionally, another significant factor driving the growth of home entertainment devices is the increased investment in smart homes. The worldwide smart home market is growing at a CAGR of more than xx%, which, combined with an increase in consumer investments in entertainment products, is boosting demand for connected home entertainment devices.

Bluetooth Technology is Accelerating Wireless Audio Device Adoption and boosting the Global Home Entertainment Device Market.

Within the connectivity segment of the global home entertainment devices market, wireless devices are projected to grow significantly over wired home entertainment devices in the future. Changing consumer preferences in the market and increasing consumer shifts to portable devices are supporting the growth of Bluetooth speakers and audio devices in the market. Bluetooth speakers, which have become widespread in recent years, come in a variety of shapes and sizes to meet consumer demands.

Rapid innovation and increased spending on Research & Development(R&D) for new and innovative applications have increased the demand for Bluetooth speakers in the global market. The prevalence of smartphones and rising consumer awareness have further boosted the demand for home audio devices around the world. In addition, the demand for audio devices such as home theatre systems and soundbars is also gaining significant importance to improve the overall atmosphere and sound quality of events such as social gatherings and home parties, driving demand for such audio devices during the forecast period.

Restraint

Fake/Counterfeit Products Act as Restraining Factor for Growth of Global Home Entertainment Devices Market

The trade-in of counterfeit goods is regarded as a significant threat to a variety of sectors. Imitation products are no longer limited to branded luxury goods and ultimate markets. Counterfeit articles are progressively making their way into other industries, such as the fast-moving consumer goods, pharmaceutical, automotive, and home entertainment devices sector, with severe ramifications for customers, legitimate manufacturers, and companies. Furthermore, the increasing existence of these counterfeit or fake products in the market, which are of poor quality and offer lower prices than the authentic ones, often tarnishes the brand image, as they are built with inferior quality materials. Moreover, these fake products steal millions of revenues from prominent players globally and thus act as a major restraining factor, slowing the market growth.

Impact of COVID-19 on Global Home Entertainment Device Market

Almost every business has been affected by the unparalleled global public health emergency known as COVID-19, and the long-term effects are expected to have an impact on industry growth throughout the forecast period. In order to ensure that core COVID-19 concerns and potential future directions are taken into consideration when assessing future growth, there is a need to recognize that the global home entertainment devices market has been affected by the global restrictions caused by the pandemic. As restrictions are withdrawn in the majority of countries where a larger part of the population is vaccinated, it is expected that the global home entertainment devices industry will achieve the compound annual growth rate (CAGR) as projected in the forecast period owing to the need of the consumer to entertain themselves after such a long period of being locked in their households.

Global Home Entertainment Device Market – By Type of Device

Based on the type, the global home entertainment device market has been divided into three categories: video devices, audio devices, and gaming consoles. The video devices segment dominated the market in 2018 and is predicted to increase at a high rate over the forecast period, driven by consumer desire for video medium entertainment. However, audio devices and gaming consoles are expected to grow at a rapid pace and register significant CAGR during the forecast period. Increased preference for audio devices such as home theatre systems, soundbars, and speakers for increased sound quality for events such as social gatherings is likely to boost demand for these appliances over the forecast period. Furthermore, the growing popularity of home gaming consoles among teens, particularly devices from brands such as Nintendo, is likely to drive the growth of the gaming console market.

Global Home Entertainment Device Market – By Distributional Channel

The market has been classified as offline or online based on the distribution channel. The offline category held the biggest market share in 2018, and this growth is projected to continue throughout the forecast period. Consumers prefer to buy home entertainment gadgets from retail stores or specialist outlets because they can view, touch, and test the products before making a purchase. Customers are more confident in the design and quality of the product after physically interacting with it. However, the internet distribution channel is growing in popularity and is anticipated to grow significantly over the forecast period. Online shopping has several advantages, including the availability of a wide range of products and simple return policies. It also allows customers to compare product features and take advantage of discounts and special offers. Furthermore, because of the vast product assortment from numerous brands, internet shopping saves time and is deemed more convenient. The rise of social media marketing is also contributing to the expansion of the internet distribution channel.

Global Home Entertainment Device Market – Regional Insights

Asia Pacific accounted for the largest share market in 2018, and this trend is projected to continue during the forecast period. Growing internet penetration in developing nations, as well as changing consumer lifestyles, have contributed to an increase in spending on household entertainment equipment. China is expected to dominate the Asia Pacific market, with India remaining profitable in terms of growth rate over the forecast period.

During the forecast period, Europe is expected to be the second-largest market. Factors such as rising disposable income and product availability at reasonable pricing are predicted to boost the regional market growth. Furthermore, the increasing use of IoT-connected devices and the rising demand for items that provide comfort and convenience are likely to fuel product demand in Europe. With rising demand for subscription video-on-demand (SVOD) services in the country, Germany is likely to dominate the European market throughout the projection period.

Competitive Landscape

The major market leaders include Xiaomi, Sony Corporation, Apple Inc., Panasonic Corporation, LG Electronics, Samsung Electronics, Bose Corporation, Sennheiser Electronics, Nintendo, Microsoft Corporation, Koninklijke Philips N.V., Mitsubishi Electric Corporation, among other prominent players in the market. Major market competitors use a variety of techniques, including mergers and acquisitions, innovative therapies, and others, to stay competitive and gain an advantage over rivals. The Global Home Entertainment Device Market is consolidated with the presence of several manufacturing companies globally. The market leaders retain their supremacy by spending on research and development(R&D), incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are utilized in order to maintain their market share.

Recent Developments

• In July 2021, Sony Electronics Unveils New BRAVIA XR 8K LED, 4K OLED, and 4K LED Models Equipped with "Cognitive Processor XR".

• In March 2022, Samsung Electronics Co., Ltd. unveiled it’s lineup of Neo QLED 8K, soundbars, and accessories.

Scope of the Report

By Type of Device

• Video Devices

  1. Televisions

  2. DVD & Blue Ray Players

  3. Projectors

  4. Digital Video Recorders

  5. Others

• Audio Devices

  1. Headphones

  2. Home Theatres

  3. Home Radios

  4. Sound Bars

  5. Others

• Gaming Consoles

By Distribution Channel

• Online

• Offline

  1. Hypermarkets

  2. Departmental Stores

  3. Specialty Stores

  4. Others

By Mode of Connectivity

• Wired

• Wireless

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa