The home theatre market size was valued at USD 8.52 billion in 2021. The home theatre industry is projected to grow from USD 10.1 Billion in 2022 to USD 33.22 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 18.54% during the forecast period (2024-2030). Rising consumer spending on home entertainment-related devices and an increasing number of smart homes equipped with connected communication devices are the key market drivers enhancing the market growth for home theatre.Â
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The growing adaption of cloud services is becoming popular in the home theatre systems market. Cloud technology legally permits customers to watch videos and music online. Video streaming platforms are adapting cloud technologies to provide a better viewing experience. For example, earlier consumers used television to watch videos, and now the customers prefer an access-based approach that allows them to subscribe to video libraries in the cloud.
Further, the ability to stream audio content wirelessly has been boosting industry growth across the globe as consumers have been adopting entertainment devices with Bluetooth and Wi-Fi connectivity. The latest audio systems, including HTIB and soundbars, are generally equipped with Wi-Fi and Bluetooth connectivity. Therefore, the product can be effortlessly connected to portable devices, including smartphones, laptops, and tablets. This connectivity feature of the home theatre systems has been attracting millennial consumers, who are rapidly adopting portable devices. Additionally, increasing demand for Blu-ray high-definition (HD) playback systems has widened the scope for the producers. Key producers of this industry, including Bose Corporation and LG Electronics Inc., are introducing new features to enhance the consumer experience, thereby driving the demand for home theatre.
Additionally, the home theatre system has created substantial interest in customers in home entertainment progressions over the past few years. A hike in the cost of movie tickets has been one of the factors for the rising requirement of feasible and advanced home theatre systems, which have presented an opportunity for customers to experience advanced home entertainment. Home theatre is swiftly replacing the conventional television with technological incorporations in the new models of home theatre system, which present a similar outlook as that of small multiplex cinema providing super HD quality. Therefore, such factors have enhanced the home theatre market CAGR globally in recent years.
However, the key manufacturers have launched home theatre packages as per the requirement of customers and installation necessities according to the size and design of the room. Companies in the home theatre systems market are manufacturing advanced systems that can be connected to the internet to access videos. Thus these factors enhance the growth of the home theatre market revenue.
The home theatre market segmentation, based on fusion type, includes sound & display systems, storage devices, and media players. The sound & display systems segment held the majority share 2021 of the home theatre market revenue. This is primarily due to the availability of compatible products for audio equipment. However, media players are the fastest-growing category over the forecast period. They permit users to organize their multimedia collection and play songs and movies.
The home theatre market data has been bifurcated by type into home theatre in a box, sound bar, and component systems. The home theatre in a box system segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. These systems include surround sound speakers, Blu-ray/DVD/CD player, amplifier, radio tuner, remote control, and cable accessories. The surround speakers enhance the home cinema experience by providing theater-like sound. However, component systems are the fastest-growing market share in the home theatre as the product contains multiple speakers placed in its cabinet that create a stereo effect and surround sound. Installing a sound bar is easier than classic HTIB and positively impacts market growth.
August 2022: Sony HT-S400 soundbar speaker system with wireless subwoofer has been launched in India. The new soundbar system from Sony is among the most affordable in the category in India. It has a 2.1-channel configuration with a two-channel bar speaker and a separate wireless subwoofer. The speaker system has a rated sound output of 330W, making it considerably louder than what most televisions offer through built-in speakers, thus pitching it as an affordable upgrade home theatre sound.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America home theatre market accounted for USD 3.65 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing demand for high-quality audio and sound system in the US and Canada has fueled the market growth in this region. Moreover, the US home theatre market held the largest market share, and the Canadian home theatre market was the fastest-growing market in the North America region.
The Asia-Pacific home theatre market is expected to grow at the fastest CAGR from 2024 to 2030. This is due increasing number of middle-class income people, along with rising urbanization in developing countries, including China, India, Indonesia, Malaysia, Philippines, and Thailand, which has been promoting the growth of the market in this region. Rapidly increasing adoption of innovative technologies, such as wireless and voice control, has also impacted the industry growth positively in Asia Pacific. Moreover, China home theatre market held the largest market share, and the India home theatre market was the fastest-growing market in the Asia-Pacific region.
The Europe home theatre market is the second-largest market per the leading customer demand for enhanced HD quality and audio systems without much price sensitivity. Further, the Germany home theatre market held the largest market share, and the UK home theatre market was the fastest-growing market in the European region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Home Theatre market grow even more. Market participants are also taking various strategic initiatives to expand their worldwide footprint, with key market developments such as new product launches, contractual agreements, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the home theatre industry must offer cost-effective items to expand and survive in an increasingly competitive and enhancing market environment.
One of the primary business strategies manufacturers adopt in the home theatre industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The home theatre industry has provided medicine with some of the most significant benefits in recent years. In the home theatre market, major players such as BOSE CORPORATION (US), LG ELECTRONICS (SOUTH KOREA), PANASONIC CORPORATION (JAPAN), and others are working to enhance the market demand by investing in research and development activities.
Sony Group Corporation manufactures and distributes electronic products and provides related solutions. The Company produces televisions, cameras, mobiles, audio and video products, game equipment, and more. Sony Group also engages in games, movies, music, and other businesses. In February 2022, Sony India introduced its premium range of Home Theater System HT-A9 and HT-A7000 soundbars, providing a new and revolutionary multi-dimensional sound experience. Powered with innovative 360 SSM surround sound technology that creates an incredibly immersive soundscape for any movie, music, or gaming experience.
Also, Summit Wireless Technologies Inc. provides immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. The company works with consumer electronics companies, technology providers, retailers, and ecosystem partners to make immersive audio an enjoyable experience. Working with CE brands and manufacturers, the company delivers seamless, dynamic audio experiences for high-definition content, including movies and video, music, sports, gaming/esports, and more. The company has sales teams in Taiwan, China, Japan, Korea, and California. In August 2020, Summit Wireless Technologies Inc., a leading sound technologies-based intelligent devices provider, launched 'Tunes By THX Monaco 3.1'. This wireless home audio system delivers a high-quality sound experience to home theater users.
BOSE CORPORATION (US.)
LG ELECTRONICS (SOUTH KOREA)
PANASONIC CORPORATION (JAPAN)
SAMSUNG ELECTRONICS. (SOUTH KOREA)
SONY CORPORATION (JAPAN)
AKAI ELECTRONICS (JAPAN)
KONINKLIJKE PHILIPS N.V. (NEATHERLANDS)
BOWERS & WILKINS (UK.)
ATLANTIC TECHNOLOGY (US.)
TOSHIBA CORPORATION (JAPAN), among others
April 2022: Bose India introduced the Smart Soundbar 900, a Dolby Atmos speaker. The Soundbar 900 boosts Dolby Atmos content by dividing dialogue, instruments, and effects and then positioning them in discrete parts of a room far above, far right, and left using proprietary Bose spatial technologies. It also elevates non-Dolby Atmos content by delivering a similar experience regardless of what the user is listening to or watching.
August 2022: Sony India launched its 2.1ch soundbar HT-S400 with a wireless subwoofer. The soundbar features S-Force PRO Front Surround technology, which provides clear dialogue and a powerful 330W total power output.
October 2020: Sound United, a New Jersey-based consumer electronics company, acquired Bowers & Wilkins for an undisclosed amount. This acquisition is for combining organizations and becoming a part of the industry’s strongest portfolio of premium audio brands.
Sound & Display Systems
Storage Devices
Media Players
Home Theatre in a Box System
Sound Bar
Component Systems
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 8.52 billion |
| Market Size 2022 | USD 10.1 billion |
| Market Size 2030 | USD 33.22 billion |
| Compound Annual Growth Rate (CAGR) | 18.54% (2024-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2021 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Operating Platforms, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BOSE CORPORATION (US), LG ELECTRONICS (SOUTH KOREA), PANASONIC CORPORATION (JAPAN), SAMSUNG ELECTRONICS. (SOUTH KOREA), and SONY CORPORATION (JAPAN) |
| Key Market Opportunities | Vendor collaboration for dynamic product generation |
| Key Market Dynamics | Increasing adaption of cloud services |
Home Theatre Market Highlights:
Frequently Asked Questions (FAQ) :
The home theatre market size was valued at USD 8.52 Billion in 2021.
The market is projected to grow at a CAGR of 4.7% during the forecast period 2024-2030.
North America had the largest share of the market
The key players in the market are BOSE CORPORATION (US), LG ELECTRONICS (SOUTH KOREA), PANASONIC CORPORATION (JAPAN), SAMSUNG ELECTRONICS. (SOUTH KOREA), SONY CORPORATION (JAPAN), and AKAI ELECTRONICS (JAPAN).
The sound & display systems category dominated the home theatre market in 2021.
The home theatre in a box system had the largest market share.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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