The luxury audio market is entering a new phase of growth, shaped by shifting economic conditions, changing consumer behaviours and a renewed appetite for high-end experiences. That’s according to a new report from Futuresource Consulting, which provides a comprehensive assessment of the sector, the opportunities and the future outlook.
“After a year of mixed fortunes in 2023, the luxury audio market has demonstrated its resilience,” says Guy Hammett, Senior Market Analyst at Futuresource Consulting. “Our research shows affluent consumers are continuing to invest in premium sound. And while external pressures, including economic uncertainty and geopolitical tensions, have cast a shadow over global markets, luxury audio has proved to be unbreakable.”
In 2023, despite a marginal decline in unit shipments, down 0.3% to 565,000, the sector still delivered growth in retail revenue, rising by 2.4% to reach $2.9 billion. This stability highlights the unwavering demand among many high-net-worth individuals, whose spending habits remain largely unaffected by financial turbulence.
“Fast-forward to the end of 2024, and our preliminary figures show the market is back to volume growth,” says Hammett. “For many buyers, high-end audio is not just about performance. It’s an investment in craftsmanship, exclusivity and experience. This resilience is setting the stage for renewed expansion. Fresh innovations and new product launches are driving the market forward, reinforcing the sector’s position as an aspirational and experience-driven industry.”
While luxury audio is a global business, different regions are experiencing contrasting fortunes. The US is emerging as the key driver of future growth. With economic policies increasingly favouring wealth creation, high-end spending is expected to gain momentum, further boosting demand for premium audio.
Europe remains a stronghold, supported by a high concentration of affluent consumers. However, economic instability continues to cast uncertainty over the region, tempering the pace of expansion.
Meanwhile, Asia-Pacific, particularly China, has encountered headwinds, with economic challenges leading to more cautious spending among wealthy buyers. While this has impacted short-term demand, Futuresource expects the region to remain integral to the long-term success of the luxury audio industry.
Loudspeakers continue to dominate the luxury audio market, commanding the lion’s share of value. Ultra-premium models remain highly sought after, with consumers increasingly gravitating towards bespoke, handcrafted designs that fuse aesthetics with performance.
Luxury amplifiers, after a stagnant 2023, are now poised for a comeback. The category is expected to see renewed interest as brands introduce new models featuring cutting-edge technology and enhanced connectivity.
Turntables, once a booming segment, have experienced a minor slowdown. However, their status as collector’s items and design statements ensures they remain deeply embedded in the luxury landscape.
High-end headphones priced above $1,000 are delivering mixed results. Strong demand in North America and Europe helped offset a weaker performance in Asia. As wireless technology improves and brands push the boundaries of audio engineering, Futuresource expects this segment to gain traction in the years ahead.
Looking ahead, Futuresource forecasts a volume CAGR of 6% between 2024 and 2028, with annual shipments expected to achieve 737,000 units by the end of the period. In value terms, the market is on course to achieve 8% CAGR, climbing to $4.3 billion.
“The industry is making a decisive shift towards ultra-premium audio experiences, with brands increasingly focused on craftsmanship, exclusivity and the pursuit of sonic perfection,” says Hammett. “With new players entering the market and innovation accelerating, luxury audio is set to become even more dynamic. We’ll see brands continuing to push the boundaries of high-fidelity sound, easing the market into an exciting new phase and capturing the imaginations of discerning consumers worldwide.”
Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions.
To learn more about Futuresource Consulting’s luxury audio report or to make a purchase, please contact Benedict at benedict.greenwood@futuresource-hq.com.
Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com
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