Bluetooth speaker market is estimated to be valued at US$ 13.07 Bn in 2024, exhibiting a CAGR of 11.2% over the forecast period 2024-2031. Bluetooth speakers are gaining high traction owing to their compact size and portability. Furthermore, rising adoption of smart home devices integrated with Bluetooth connectivity is also boosting the market growth.
Market Dynamics:
Global Bluetooth speaker market growth is driven by increasing adoption of smart home technologies and high internet penetration. With growing popularity of smart home devices, people are increasingly adopting multifunctional devices that can be controlled remotely through their smartphones. This boosts demand for Bluetooth integrated smart speakers. As per recent surveys, over 40% of urban households own at least one smart home device. High-speed internet is widely accessible, and this has boosted streaming of audio content over Bluetooth. Major music streaming apps like Spotify, Apple Music, and others allow users to stream music wirelessly through their Bluetooth speakers. The proliferation of high-quality streaming services along with widespread internet access has significantly increased audio consumption via portable Bluetooth speakers.
Market Driver: Increasing Adoption of Smart Devices
One of the key drivers fuelling the growth of the Bluetooth speaker market is rising adoption of smart devices such as smartphones, tablets and laptops. Bluetooth speakers offer a convenient wireless audio playback solution for these devices. As consumers increasingly use their smartphones and tablets for music playback, video streaming and gaming, the demand for high-quality portable Bluetooth speakers increases. The seamless Bluetooth pairing capabilities allow users to listen to audio from any smart device on a speaker, thus, driving the market growth.
Market Driver: Growing Popularity of Outdoor Audio Entertainment
Another major factor propelling the Bluetooth speaker market growth is increasing popularity of outdoor audio entertainment activities such as camping, hiking, beach trips and backyard parties. Bluetooth speakers have emerged as a preferred option for enjoying music outdoors due to their portable design and wireless connectivity. These eliminate the hassle of cables while delivering impressive sound quality in outdoor environments. Manufacturers are also introducing rugged, waterproof models to better suit harsh outdoor conditions. This expanding outdoor boosts strong sales of Bluetooth speakers.
Market Restraint: Dominance of Headphones
One challenge restricting the Bluetooth speaker market expansion is the dominance of headphones in the Bluetooth Speaker market. While speakers offer shared listening experiences, headphones deliver private listening, and are more convenient to carry around. Many users prefer headphones for their inherent mobility and ability to keep the sound private. Major headphone brands also provide better noise cancellation and higher fidelity audio as compared to compact portable speakers. This makes headphones a tougher competitor for speakers.
Market Restraint: Pricing Pressures from Chinese Manufacturers
Aggressive pricing of Bluetooth speakers by Chinese manufacturers is another key factor hampering the market growth. Chinese OEMs/ODMs have significantly drove down speaker prices by optimizing costs and operating on low margins. This intense price competition makes it difficult for premium brands to charge higher price points. It also reduces profitability across the value chain. To establish themselves, Chinese brands sometimes replicate the designs of successful models., further increasing competitive pressures on pricing and margins.
Market Opportunity: Smart Speaker Market Growth
The rapid rise of smart speakers embedded with virtual assistants like Alexa and Google Assistant is offering opportunities for the market growth. Smart speakers offer hands-free voice control, internet connectivity and multi-room audio capabilities beyond basic Bluetooth speakers. As these devices proliferate homes and offices, the demand for additional standalone or auxiliary smart speakers increases.
This shows a big opportunity for OEMs to reach out with models that work well in this market.
Market Opportunity: Emergence of Outdoor Accessories
The emergence of complementary accessories tailored for outdoor use cases offers opportunities for the market growth. This includes rugged, waterproof speaker docks, floats, straps and hooks. Such accessories allow convenient mounting of speakers on bikes, boats, backpacks or any outdoor surface. These boosts Bluetooth speakers’ versatility for various active lifestyles. By launching attractive accessory bundles, manufacturers can enhance the outdoor usage experiences and broaden the customer base.
*Link: https://www.coherentmarketinsights.com/market-insight/bluetooth-speaker-market-5401
Key Developments:
- In February 2023, HARMAN International's JBL brand is a well-known company that specializes in audio equipment. launched the Pulse 5 portable speakers in the U.S. These speakers offer immersive 360° lighting synchronized with music, customizable through an app. These feature a 30 W woofer and 10 W tweeter, covering a frequency range of 58 Hz to 20 kHz. With a 27 Wh battery, these provide 12-hour playback, fast recharge, Bluetooth 5.3 for dual device pairing, and PartyBoost for stereo or linked sound. The IP67 rating ensures dust and water resistance, making them suitable for outdoor use.
- In August 2022, Logitech's Ultimate Ears brand is a prominent company known for its expertise in computer peripherals and accessories. expanded its product line with the launch of WONDERBOOM 3. Crafted from entirely recycled polyester fabric, including 31% post-consumer recycled plastic, this speaker offers a circular sound experience, providing deep bass and sustaining 14 hours of full-stereo boom. With an IP67 rating, it is waterproof and dustproof, capable of floating in a pool.
Key Players:
HARMAN International, Bose Corporation, Sony Group Corporation, Marshall Group AB, Apple Inc., Bang & Olufsen, Logitech, Plantronics Inc., VOXX International Corporation, Fugoo, Amazon.com Inc., Altec Lansing Inc., Best IT World India Pvt. Ltd., Imagine Marketing Pvt. Ltd., Koninklijke Philips NV, Kunhar Peripherals Pvt Ltd., Lenovo Group Ltd., LG Electronics Inc., Onkyo Corp., Samsung Electronics Co. Ltd.