Market Overview and Growth Highlights
Growing popularity of entertainment lovers in Canada with the availability of a large number of premium audio products to choose from is anticipated to create significant opportunities for the companies operating in the high-end audiophile speakers and custom installed home theaters market in Canada. The market is also anticipated to grow on account of the shifting preferences of consumers towards home entertainment and theatre solutions as the demand for advanced sound quality continues to be the crucial parameter among customers.
The market for high-end audiophile speakers and custom installed home theatre systems in Canada are anticipated to grow at a CAGR of 3.68% over the forecast period 2020-2028. Factors such as rising inclination towards new technology, high urbanization rate, growing spending power of millennials across the country and high participation in music festivals, is further anticipated to drive the demand for high-end audiophile speaker and custom installed home theaters market across the country. According to the statistics released by Statistics Canada, in 2017, 77% of the total income of people was through wages, salaries and commissions. 9% was through retirement income and 7% was through investment income. More income often leads to a better standard of living. This often leads to people investing more on personal entertainment solutions.
The growth of internet globally along with the development of built-in advanced interfaces for high-end audiophile speakers and custom installed home theaters will create large opportunities for the companies to penetrate the market as a large population of people prefer smart devices.
Market Segmentation Synopsis
The Canada high-end audiophile speakers & custom installed home theater market can be segmented on the basis of product type custom installed home theater and high-end audiophile speakers. The custom installed home theaters segment registered the highest market share in the year 2019 and also registered a value of USD 86.02 million in the same year. The segment is further anticipated to grow by a CAGR of 3.88% during the forecast period. The growth of the segment can be attributed to the rising income levels of the population along with the changing lifestyle with increased spending of the millennials in the country. Furthermore, the key players in the market are offering tailored solutions as per the consumers’ needs, playing a vital role in the progressive development of the segment. The growth in the video streaming industry is further anticipated to drive the growth of the segment during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
The custom installed home theater segment can be further divided by product type and by buyer.
By Product Type
On the basis of product type, the custom installed home theater segment, under Canada high-end audiophile speakers & custom installed home theater market, can be segmented into projector installations, acoustic matter, home audio video installations, and others. Out of these, the home audio video installations segment held 34.72% market share in 2019. Also, in 2020, the segment recorded a value of USD 31.18 million. The growth of the segment can be attributed to the increase in disposable income, rising internet penetration and shrinking life cycle & growing demand of consumer electronics, among others. Furthermore, the rising consumer demand for the emerging wireless technology-based products along with the growing trend of Blu-ray HD (High Definition) playback systems that provides a better home theater experience is estimated to drive the growth of the segment.
On the basis of buyers, the custom installed home theater segment, under Canada high-end audiophile speakers & custom installed home theater market, can be segmented into residential and commercial. Out of these, the commercial segment held the largest market share in 2019. The rising demand for custom installed home theaters from various places in the commercial sector such as private lounges, pubs and bar, among others is anticipated to drive the growth of the segment. Furthermore, the growth of the music production industry is further estimated to support the growth of custom installed home theater and speaker market in the commercial segment. There is a growing use of custom installed home theaters in the commercial spaces in order to capture the audience’s attention and to effectively communicate with the help of better presentations, as the custom home theater becomes a powerful tool for presenting. Moreover, these are used for video conferencing in various commercial facilities. The residential segment, on the other hand, is expected to grow with a CAGR of 4.67% over the forecast period.
Under the product type segment of the Canada high-end audiophile speakers & custom installed home theater market, the high-end audiophile speakers’ sub-segment is estimated to reach a market value of USD 34.17 million by 2028. This segment can further be divided by station, connectivity and by buyer.
On the basis of station, the high-end audiophile speakers’ segment, under Canada high-end audiophile speakers & custom installed home theater market, can further be divided into wall mount and surface mount. Out of these, the surface mount category held the largest market share in 2019. In 2020, the wall mount category recorded a market value of USD 8.94 million and is expected to grow at a CAGR of 3.44% over the forecast period. Changing lifestyle of the population, with a transition towards more minimalist living standard is anticipated to drive the demand for wall mount high end speakers during the forecast period. Wall mount speakers allow the consumer to experience sound from a high-end dimension. The angle elevation offered by wall mount speakers when creating acoustics, provides a theatrical effect within the room. High-end wall mount audiophile speakers provide various benefits such as use of premium material, compact size, better tonal qualities, among others. These benefits are the primary driver for the growing demand of wall mount speakers.
On the basis of connectivity, the high-end audiophile speakers’ segment, under Canada high-end audiophile speakers & custom installed home theater market, can further be divided into wired and wireless devices. Out of these, wired devices held the largest market share in 2019. Furthermore, the wired devices segment is estimated to grow at a CAGR of 3.11% over the forecast period. The primary advantage offered by wired high-end audiophile speakers is the better sound quality compared to the wireless speakers. Furthermore, the level of controls over amplification and conversion offered by wired speakers is driving the demand of this segment across the country. The presence of DAC (digital-to-analog converter) and amplifier in the wired high-end audiophile speakers, enables a level of control unmatched by the wireless speakers.
On the basis of buyers, the high-end audiophile speakers’ segment, under Canada high-end audiophile speakers & custom installed home theater market, can further be divided into commercial and residential. The commercial segment recorded the largest market share in the year 2019. High-end audiophile speakers are becoming a top priority for outdoor entertainers. The rising demand for high-end audio systems from outdoor events such as live concerts and from indoor entertainment venues such as pubs, restaurant and cinema halls among others is one of the primary contributors to the growth of the segment. The growing popularity of high-end audiophile speakers at different commercial spaces is further anticipated to drive the growth of the demand across the commercial users.
Impact of COVID-19 on Canada High-End Audiophile Speakers & Custom Installed Home Theater Market
Amid the coronavirus pandemic, several countries across the world resorted to lockdowns to flatten the curve of the infection. These lockdowns led to the shutting down of businesses and ceasing of almost all economic activities. No sector has escaped its impact. Most of the high-end speakers & home theatre companies had to close their manufacturing facilities owing to outbreak of COVID-19 late in December 2019.
COVID-19 had a negligible impact on the pricing of the high-end audiophile speakers and custom installed home theatre market owing to the fact that the process and components used in the high-end audiophile speakers and custom installed home theatre market remains unchanged. Also, no new technological advancements have been made or new products have been introduced in the market during the COVID-19 period.
Market Drivers & Challenges
Increasing Demand for Custom-Tailored Sound Systems to Boost Market Growth
From 2017 to 2018, the average after-tax income of Canadians rose by 2.5% for people in the bottom 40% of the total income distribution. But for the population as a whole, it was almost unchanged. Also, since 2012, the growth rate has been recorded at 10.4% for those in the bottom 40% as compared to 6.5% for all the Canadians. With the increase in the disposable income of the population, there is a shift in the preferences of individuals for adopting better lifestyle habits. This also included adoption of personalized entertainment solutions. Customized home theatre systems have witnessed a significant demand among the consumers during the recent years. This is owing to the growing income levels of the population in the country and the desire to spend more on entertainment solutions. Moreover, the major players in the market provide personalized home theatre packages as per consumer’s preference, room size, and room design which plays a vital role in the growth of the high-end audiophile speakers and custom installed home theaters market in Canada. Another factor for the growth of the market is the constant increase in the number of players selling large-sized televisions with high screen resolution, projectors and home theatre systems. With continuous improvements in the quality of equipment, consumers now are enjoying an exclusive movie theater experience in the comfort of their own homes. There is also a growing trend of Blu-ray high-definition (HD) playback system that gives the advanced home theater experience.
Increase in Family Net Worth Along with Changing Customer Preferences to also Propel the Market
The rise in the number of millionaires and billionaires in the country is among the key driver for the growth of the high-end audiophile speakers and custom installed home theaters market. The increase in family net worth in the country has risen over the past few years. It has been noticed that there has been a humongous growth of high net worth individuals among various provinces. Furthermore, the growth of the music production and recording industry has also supported the high-end audiophile speakers and custom installed home theaters market to a great extent. Advancements in digital technology led to the delocalization of professional recording studios along with the decline of traditional record companies. This has encouraged the adoption of high-end speakers for indoor use as it has become easier for users to access the content of their choice on-demand, thus eliminating the need for depending upon other sources.
Availability of Similar Products at a Cheaper Cost can Hamper Market Growth
One of the major restraints faced by the high-end audiophile speakers and custom installed home theater market is the availability of similar products at a much lower cost. The product used in manufacturing of high-end speakers is Neodymium which is a rare earth material thus making the product very expensive. However, using a simple magnet instead of Neodymium makes the speakers less expensive thereby reducing the price of the product for a larger customer’s base. Another significant challenge faced by the companies in the high-end audiophile and custom installed home theater market is the presence of large number of players thereby increasing the competition of the market. Owing to changing dynamic of the market and continuous improvement of products, companies have to constantly work on delivering high-quality and synchronized products to various customer segments.
Top Featured Companies Dominating the Market
Some of the prominent industry leaders in the Canada high-end audiophile and custom installed home theater market are Design Electronics, Sonic Systems, The Sound Room, Audio Excellence, Definitive Sound, The Watershed Group, Bitstream Media, Pure Image Technology Solutions Ltd., Immersive Design Studios Inc., and Barco.