Professional loudspeaker market on the rise, though underlying sectors face uneven growth

The professional loudspeaker market continues to display steady global expansion, growing from $2.78 billion in 2022, to achieve $3.05 billion last year. And while a new report from Futuresource Consulting predicts continued volume and value growth, the market is experiencing a divergence of fortune at the sector level. 

“The professional audio industry can be likened to a plate-spinning act,” says Grant Youngman, Head of Pro Audio, Futuresource Consulting. “While some sectors are showing stability or even undergoing rapid commercial acceleration, others are losing momentum and beginning to wobble, due to economic factors and changing end user behaviours. All this market diversity is weighing heavy on the professional loudspeaker market, with its underlying sector-level turbulence in contrast to the overall steady market growth.” 

Touring and rental market going strong

Futuresource notes that the touring and rental market is leading the way for growth, posting a powerful 25% year-on-year value increase. This surge was driven by a strong, sustained recovery in the live entertainment industry. Gross revenue for the top global tours rose by 46% and ticket sales increased by nearly 20%, drawing close to the half-a-billion-dollar mark.  

“We’re anticipating healthy growth for touring and rental throughout our forecast period,” says Youngman. “Expect continued demand for high-quality sound systems in large venues and at festivals, with increasing investments in advanced, adaptable audio systems to enhance those live performances.” 

Portable sound hit by changing consumer behaviours

Conversely, the portable sound segment faces challenges from a range of economic pressures. Consumers are modifying their spend behaviours, and this is impacting mobile DJs and small event operators, who are postponing investments in new hardware.  

Although Futuresource research has uncovered single-digit growth in portable sound last year, this was far lower than the vigorous growth observed in 2022. While emerging economies continue to see steady demand due to cultural events, the overall global market growth is forecast to remain subdued throughout 2024 and beyond. 

Installed leisure, commercial and cinema trending upwards

The installed leisure and installed commercial segments both expanded in 2023, and will continue to do so throughout the forecast period. By 2028, Futuresource expects them to surpass $1.2 billion and $1 billion respectively. 

“From nightclubs and bars, to sports stadiums, theme parks and museums, there’s an increasing focus on advanced audio technologies to attract visitors,” says Youngman. “Urbanisation, growth of music tourism, and the emphasis on enhanced visitor experiences are propelling demand in this sector. 

“It’s a similar story for the commercial sector, too. Hospitality businesses are prioritising the customer and user experience, which is driving intense innovation and increasing the widespread demand for professional loudspeakers. In corporate environments, we’re seeing investment in superior audio systems to enhance collaboration and communication in hybrid work settings. 

“Cinemas are also adapting to new consumer expectations by exploring advanced audio solutions. This steady sector growth in both volume and value indicates another area of sustained potential for loudspeaker manufacturers.” 

Pro loudspeaker market primed for growth

Moving forward, manufacturers and integrators in the professional loudspeaker industry are likely to enjoy a range of opportunities across a diverse array of markets. By focusing on advanced, adaptable and user-friendly audio solutions, they can benefit from the rising demand for high-quality sound experiences. 

Futuresource Consulting’s Professional Loudspeaker Market Assessment report, explores the current state of the market and provides an outlook on the shape of the sector over the next five years. For more information or to make a purchase, please contact johnny.woodman@futuresource-hq.com.

About the author

Grant Youngman

Grant Youngman joined Futuresource Consulting in May 2023 as the Senior Market Analyst, leading research across the Professional Audio industry. Grant brings a wealth of analytical knowledge having worked in many different industries during his career. Grant’s research will span the entire professional audio industry with an initial focus on publishing the Audio over IP annual report.