Representative image of a person listening to music on headphones.
Credit; iStock Photo
New Delhi: The Indian audio devices market is experiencing "remarkable growth" as offline retail sales hit Rs 5,000 crore moving annual turnover (MAT) in June 2024, driven by a 61 per cent YoY volume growth in the Personal Audio segment, according to a report from GfK.
Growth is driven by the rise in immersive sound technologies, enhanced consumer experiences, and a growing demand for high-quality audio products across both home and personal categories, it said.
Moreover, a shift towards premiumisation in the category as consumers look towards superior quality and immersive audio experiences also aiding the Indian audio device market.
Indian consumers have a "massive appetite" for audio devices and are seeking a cinematic experience and convenient listening.
"With the evolving entertainment landscape, consumers increasingly seek premium, cinematic audio experiences, making the sector ripe for growth and revenue opportunities," said GFK, which is now an NIQ Company, a leading global market and consumer intelligence firm.
Though the market is still dominated by Compact Stereo Systems, Home Theatre and Smart Audio have registered fast growth.
"The personal audio market in India, valued at Rs 3,400 crore, experienced a 32 per cent YoY growth in value in MAT June 2024," it said adding " Headphones, Headsets and mini/Bluetooth speakers have become essential for the Gen Z consumers, who increasingly demand flexibility, affordability, stylishness and quality in audio experiences."
Moreover, this demand is fueled by the rise of new content formats such as podcasts and audio series, it added.
Moving annual turnover (MAT) is a calculation that measures the average sales or turnover over a 12-month period, with the data rolling on a monthly basis.
In the personal audio segment, True Wireless Headsets had a "significant demand with an increasing share of 38 per cent" within the headsets category.
"By value, True Wireless segment lead the audio market with 50 per cent contribution Neckbands continued to dominate the personal audio market by volume, contributing to 55 per cent of sales," it said.
Mini/Bluetooth speakers also witnessed a 15 per cent YoY value growth, with entry-level products up to Rs 2,000 driving 3 per cent of sales by volume.
"Consumer demand for wireless and True Wireless models, along with advanced features such as noise cancellation and voice assistant integration, continues to push the market forward," it said.
Moreover, as the average selling price in the category declines by 18 per cent, to Rs 1,400 accessibility to quality audio devices is broadening.
While the loudspeaker segment, dominated by soundbars, registered a 24 per cent YoY volume growth in MAT June 2024, reaching Rs 1,100 crore.
"With 70 per cent of loudspeaker sales coming from large retail chains, the South Zone, particularly cities like Bangalore, Chennai, and Hyderabad, has emerged as a hotspot for loudspeaker demand," it said.
Moreover, the growth of loudspeakers in smaller towns and cities, contributing nearly 30 per cent of the category sales, also reflects trend of increasing demand from non-metropolitan areas.
Now Home Audio, valued at Rs 1,600 crore, sees premiumisation with 5.1 channel systems gaining traction, 23 per cent of sales come from high-end segments, it added.