HERTFORDSHIRE, UK – The global home audio market continues to climb, with hardware shipments increasing 23% in 2017, says Futuresource Consulting.

“It’s not just shipments that are performing well,” said Rasika D’Souza, senior market analyst. “Last year’s revenues powered through the $13 billion barrier for the first time, finishing 2017 close to the $14 billion mark. And there’s plenty more punch left in the home audio hardware category, with our forecasts showing value growth out to 2021 and shipments continuing to grow beyond that.”

Smart speakers are leading the charge. The US still accounts for the lion’s share of global demand, though interest in China has been growing rapidly since the fourth quarter of last year.

“We’re seeing growth in multiple ownership, further developments in voice platforms and consumer usage extending beyond music,” said D’Souza. “Smart speakers are providing reminders and alarms, acting as kitchen assistants, delivering entertainment content for kids and a range of other benefits, all having a positive impact on uptake.

“Voice is just beginning to emerge as a feature in soundbars too, with a handful of brands launching products at price points under the $400 sweet spot.”

Object-oriented sound is becoming increasingly important in soundbars, says the research firm. The technology takes the sound effects in a movie soundtrack and digitally moves them around 3-D space, affording viewers a cinema-like sound experience in their homes.

Dolby currently leads the market, with over 15 models already available and more to be announced by the end of 2018.

“As with so many things, content availability is key to the success of object-oriented sound,” said D’Souza. “You can’t develop customer awareness and drive meaningful growth without it. But its future sounds bright, as the technology is now supported by Sky, Netflix, DirectTV, China Telecom and many others.”

Amazon topped the home audio brand leaderboard for units shipped in 2017, with a market share of 16%. Harman/JBL followed closely behind at 15%, emerging from the competitive fray, despite the growing consumer love for smart speakers, says Futuresource. Harman/JBL is the only brand other than Amazon and Google that gained share in 2017.

In terms of revenues, Bose and Harman/JBL were tied in the top spot, each with a 13% share.

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