The HI-FI systems allow users to meet the demands of enhanced hi-fidelity from electronic systems like sound bars and speakers. HI-FI equipment has a precise frequency response with less interference and noise.
The user’s expectation for sound replication with good quality, clarity, and fidelity has risen as the digitalization of systems gains popularity. The user’s musical experience has significantly transformed from the two preceding generations.
Tuners, amplification devices, recording devices, receivers, CD players, DACs, and network players make up the HI-FI system market today.
The development of wireless innovation and technological advancement has resulted in the growth of the HI-FI system industry. The need for home-theater-in-a-box (HTiB) equipment, smart homes, and the developing automotive industry are all driving up the price of HI-FI systems worldwide.
In addition, the increased use of mobile devices like smartphones, laptops, tablets, and online services has fueled the development of wireless audio solutions for HI-FI systems.
In this article, I will cover everything you can know about the global Hi-Fi system market, including the size of the market, its segmentation, and the ongoing development in the industry.
The Size of the Global HiFi System Market
The demand for high-quality audio from audiophiles has led to significant growth in the worldwide High-Fidelity (Hi-Fi) system market.
Numerous audio items, including network media players, sound bars, speakers, headphones, and other products, now support wireless connections.
The global market for hi-fi systems is anticipated to develop due to this rising demand for wireless audio devices, amongst other things.
The size of the global hi-fi system market was evaluated at $14.05 billion in 2021 and is predicted to increase to $15.04 billion in 2022. By 2027, it is forecasted to reach $21.41 billion, growing at a CAGR of 7.27%.
The automotive industry’s growing acceptance of hi-fi systems is a major factor in the anticipated significant global market growth for these systems.
The popularity of smart home appliances has raised the demand for Hi-Fi systems, which has expanded the market’s size.
Due to the rapid changes in the automobile industry, it has been reported that the Asia Pacific area holds the most significant market share.
The industry has also experienced the most rapid growth in the Asia Pacific region, which is anticipated to maintain its market dominance during the forecasted period.
Due to its maturity, North America accounts for the second-largest proportion of the worldwide Hi-Fi system market.
Due to the presence of numerous producers, North America has experienced a steady expansion in the Hi-Fi market over the past few years.
However, with the inclusion of developed economies like Germany and France, Europe is anticipated to enjoy significant development due to the rise in demand for luxury vehicles with wireless Hi-Fi sound systems.
The speakers and sound bars category of Hi-Fi items combined held the most significant market share. The demand for automotive applications is anticipated to develop the fastest during the forecast.
The Segmentation of the Global Hi-Fi System Market
Besides segmentation based on region, the Global Hi-Fi System Market is segmented based on two main things: types and applications.
Segmentation of Global Hi-Fi System Market Based on Types
The market is segmented into wired and wireless based on types.
Wired
An audio hardware item with a cable or wire attached to the primary power source is a wired Hi-Fi system. Its larger amps, subs, and speakers produce a sound that is of a high caliber.
An amp and a speaker are both used in this particular audio system. Interconnection cables, which may be made of optical fibers or wires, are required to transmit the audio from the speakers to the amplifier.
Wireless
A wireless Hi-Fi system eliminates the need for wires or cords to carry electrical signals back into the origin devices to play songs from a digital device.
Since no wires connect to the Wireless Hi-Fi Systems, movement within homes and offices increases.
Users do not need to carry their smartphones because they can link via Bluetooth and Wi-Fi network options like Chromecast Audio and Airplay.
These speakers don’t have any cables attached, so users may set them wherever is most convenient in their homes or businesses while still receiving high-quality music streaming without any connection concerns interfering with their enjoyment.
Segmentation Based on Application
The market is segmented into three types based on application: residential, commercial, and automotive.
Residential
Hi-Fi systems are frequently employed in home settings. This sort of Hi-Fi system is becoming more popular for several reasons, including its capacity to generate audio of excellent quality, simplicity of setup, and availability at reasonable costs.
The loudspeakers are typically placed alongside screens, sound systems, and other audiovisual equipment to improve music or dialog sharpness during films and television shows.
Commercial
The Hi-Fi speaker system is utilized in commercial settings to reproduce speech, sound effects, and songs. They are most frequently found at pubs, restaurants, or stores to create an atmosphere that improves the patrons’ experience.
Automotive
Automobiles are equipped with hi-fi speaker systems to allow you to listen to music and songs in your car.
Most contemporary automobiles come equipped with a high-fidelity speaker system, providing passengers with the highest possible audio output while driving. This speaker can provide crystal-clear audio at any volume.
Forecasted Development in the Global HiFi System Market
The following developments are predicted in the global HiFi system market during 2020-2027.
The Residential Market Will Dominate the Industry
The residential market is anticipated to be driven by increasing consumer desire for wireless Hi-Fi systems. The increase in residential use is also attributed to the rise in popularity of tablets, PCs, and smartphones that can be used with wireless headsets and headphones.
Asia-Pacific Will Have the Biggest Share of the Global Market
Asia-Pacific is anticipated to account for the highest share of the Hi-Fi gadget market during the projected period because of its vast consumer base and rising consumer purchasing power.
The market for Hi-Fi systems in this region is also driven by the rising popularity of wireless technologies for communication and rising mobility requirements. Consumer electronics like smartphones and tablets are in more demand in the region, causing the Hi-Fi gadget business to expand.
The Automotive Industry will drive the Demand for Hi-Fi Systems
Thanks to integrated wireless Hi-Fi systems, customers can enjoy luxury and comfort from the automobile sector.
Every luxury car has fully integrated wireless systems in the modern world, and many Hi-Fi system brands offer these features in their most expensive versions. It is anticipated that increasing luxury vehicle demand in developing nations will increase the market for Hi-Fi systems worldwide.
Final Thoughts
The COVID-19 pandemic caused a global decline in the Hi-Fi system market’s growth. Due to the severe lockdown regulations that most nations enacted, most automobile companies were forced to close, which caused significant losses for the Hi-Fi system sector.
However, the industry has been booming since governments began to relax their lockdown laws.
Demand for Hi-Fi systems has been reported to have increased significantly in 2020–21. The Hi-fi system market is anticipated to grow in 2022 and beyond as most sectors return to their regular production processes.
Endless hours of experimentation, professional work, and personal investment in Home Theatre, Hi-Fi, Smart Home Automation and Headphones have come to this.
Former owner of Headphones Canada, a high-end headphone specialty retailer.