The global sound reinforcement market was valued at USD 8.53 billion in 2022 and is expected to reach USD 10.91 billion by 2028, growing at a CAGR of 4.19%. A sound reinforcement system combines several equipment components such as microphones, pro speakers, audio mixers, audio signal processors, and power amplifiers. This system is designed and engineered to capture, enhance, and amplify the live or pre-recorded sound and distribute it over a large area to an audience. The rise of the global music industry and increased live performances and concerts have boosted the demand for pro AV solutions in markets worldwide. The demand for sound reinforcement equipment and solutions from various end-user markets has also grown in countries such as China, Germany, Japan, and India due to the booming commercial real estate, hospitality, corporate, and music markets, as well as a shift in consumer behavior toward live music concerts and exhibitions in developing countries. The sound reinforcement market is particularly developed and growing, with the presence of vendors such as Shure, Sennheiser, Audio-Technica, Bose, Harman, Sony, and Yamaha offering products to a diverse range of vertical markets.
The global sound reinforcement market shipments are expected to reach 14,202.24 thousand units by 2028. Futuristic inventions in wireless digital technology and growth in complementary digital technologies are likely to boost investors' confidence in the market, and the industry will witness an increase in VC funding during the forecast period. Further, factors such as the high spending power of the millennials and boomers, growing participation in music festivals, increased adoption of smartphones, inclination toward new technology, and high urbanization are driving the North American sound reinforcement market growth.
MARKET TRENDS & DRIVERS
Growing Adoption in Educational Institutions
Educational institutes are becoming one of the key end-users of pro AV solutions worldwide. Modern-day university campuses driven by technological advancements are revolutionizing. Smart campuses use wireless technology and IoT to promote interconnectedness in various university campuses. Globally, there is a push toward smart campuses and the consequent need for more engaging, immersive, and interactive learning. Various sound reinforcement equipment, such as microphones and speakers, are becoming an integral part of university campuses.
Growth in Live Performance and Music Industry
Sound reinforcement equipment, lighting systems, and the associated pro-AV systems and solutions are the heart and soul of the live music industry globally. Recently, the world has been witnessing a spurt in the growth of live music concerts and events. The primary reason behind this growth is the revenue generation for artists who see live music concerts as a primary source of their income. An increasing corporate sponsorship for music tours, venues, and events also contributes to the sound reinforcement market growth. Further, attendance at such concerts is increasing exponentially as the audience can witness and experience their favorite artists performing on the stage.
Government Regulations – FCC Wireless Spectrum Auction
The sound reinforcement market growth, especially in the U.S., is expected to be hampered during the forecast period due to the revised auction of spectrum bands by the Federal Communications Commission (FCC). The industry faces uncertainty over the reallocation of the 600 MHz service band, primarily used by several wireless microphones.
INSIGHTS BY PRODUCT
The global sound reinforcement market by product can be segmented as microphones, pro speakers, audio/sound mixers, audio signal processors, audio power amplifiers, and others. The microphone product segment is expected to be the largest revenue segment of the industry in 2022. Microphones are widely used in many industries. Upgrades and replacement of legacy systems in developed markets mainly propel the growth in the microphones industry. Further, new demand for microphones is mainly concentrated in developing markets where economies flourish, and the vertical markets grow steadily. Technological innovation in the microphone industry is creating new opportunities for vendors in North America and Europe, along with developed economies of APAC.
INSIGHTS BY END-USER
The corporate end-user segment is expected to be the largest revenue segment of the global sound reinforcement market. The major factors driving the demand in this segment included opening new offices and the growing penetration of IoT in corporations worldwide. The continuously evolving technologies and better connectivity infrastructure are boosting the telecom and IT industry, leading to growth in the number of employees. Employee engagement by games, music, events, seminars, training, and more has become a key focus across the corporate sector. This, in turn, is propelling the requirement for sound reinforcement from the corporate sector.
INSIGHTS BY FORMAT
The global sound reinforcement market by format is divided into digital and analog. Digital sound format is mostly preferred globally and has a higher share globally. Electromagnetic interference is less sensitive in digital sound systems. They have a higher PSRR (power supply rejection ratio), simplifying their architecture and improving audio quality. During the forecast era, the digital segment of the industry is projected to rise due to an increase in the number of connected devices and Internet users worldwide.
INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel segment is expected to be the largest revenue segment of the global sound reinforcement market. Retail stores are the major destination of end-users purchasing sound reinforcement equipment. Although the trend of selling these products online and in OEM stores is increasing, a significant share of product distribution occurs through conventional pro audio and electronics stores/outlets. Sound reinforcement equipment producers harness these stores due to personalized customer services. The stores' staff are educated about sound reinforcement equipment, its usage, and its complexity. These staff, in turn, educate customers about these products and help them select appropriate products.
North America held the largest global sound reinforcement market share, accounting for over 34% in revenue. Factors such as the high spending power of the millennials and boomers, growing participation in music festivals, increased adoption of smartphones, inclination toward new technology, and high urbanization are driving the industry growth in North America. The U.S. is the region's leading market for sound reinforcement systems and solutions. Millennials majorly drive the market and can be termed a digital generation. They are tech-savvy, and most of them are addicted to their smartphones. Moreover, concert organizers have been working hard to promote the ideology of concerts and live performances among millennials in the U.S. who have been showing little interest in attending concerts. Companies like Live Nation have successfully carried out such promotions to connect millennials to the live performance industry.
APAC is projected to witness the fastest growth rate in the global sound reinforcement market during the forecast period. The urbanization of developing countries in APAC is expected to bolster retail sales and growth in the entertainment, broadcasting, hospitality, exhibition, healthcare, and restaurant industries. While Japan is a significant industry for sound reinforcement systems, countries such as China and India are expected to witness increased demand due to a growing government initiative for a digitalized economy. Further, the growth of live music concerts drives the growth of professional audio solutions in the region. Sound reinforcement systems help record the event in high quality, later sold as live albums. It also helps in the live streaming of such events, thus catering to a wide segment of the audience.
The global sound reinforcement market is highly fragmented, with many local and international players. The key market players compete in various rounds, such as introducing new products, technology, and online presence. The growth of vendors in the market also depends on market conditions, technological innovations, and industry development. Some prominent global sound reinforcement market companies include Audio-Technica, Bose, HARMAN International (Samsung), MUSIC Tribe, Sennheiser, Shure, Sony, and Yamaha. Further, the adoption rate of pro AV solutions, including sound reinforcement systems, among end-users worldwide has been impressive. Due to increased demand, the industry has witnessed the entry of several new vendors. The competition among these companies has intensified, leading to the introduction of many innovative and advanced solutions in the market. These players compete on various factors such as price, quality, availability, brand, and variety. However, the price and quality are set to become significant bases for competition among players to gain an edge over other vendors in the industry.
ABOUT THE REPORT
The global sound reinforcement market is provided for the forecast years 2023 to 2028 and the base year 2022. The market is segmented by product, end-user, format, distribution channel, and geography. The report provides a comprehensive approach to the global sound reinforcement market, enabling customers to analyze the industry thoroughly.