Audio Device Market in India Booms as Podcast Popularity Surges

Audio device segment in offline retail hits ₹5000 cr: Gfk

The overall audio devices market in offline retail hit ₹5000 crore during the July, 2023- June, 2024 period led by robust growth in the personal audio segment, as per the latest report released by Gfk. The research firm said this indicates increased consumer shift towards superior quality, immersive audio experiences. The personal audio market in India, valued at ₹3400 crore, recorded a 32 per cent year-on-year growth in value and 61 per cent in terms of volume growth, during this period. The report noted that 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. True Wireless Headsets saw significant demand within the personal audio headsets segment. By value, True Wireless segment leads the audio market with 50 per cent contribution. Meanwhile, Neckbands continued to dominate the personal audio market by volume, contributing to 55 per cent of sales. 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. "With rising disposable incomes, availability of affordable device options, a growing Gen Z population, and the expanding digital content consumption, there is increasing opportunity for these wireless technology devices with AI integration for smoother user experiences," Anant Jain, Head of Customer Success - Tech & Durables, GfK, an NIQ company, stated. The home audio segment, which includes audio home systems and loudspeakers, was valued at ₹ 1600 crore during this period recording 6 per cent volume growth. "Despite an overall 11 per cent Y-o-Y volume decline in audio home systems during MAT June 2024, the premium segments are making significant strides. The entry segment, priced below₹ 3,000 dominates 27 per cent of the market, while the premium segment (priced above ₹ 8,000) accounts for 23 per cent , reflecting a shift towards higher-quality products. Meanwhile, the loudspeaker segment, dominated by soundbars, registered a 24 per cent y-o-y volume growth during this period reaching ₹ 1100 Cr, signaling its growing appeal among Millennials and Gen Z, tech-savvy consumers. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on September 12, 2024

Personal audio product sales rise amid new-found passion for podcasts, audio series

Indians' growing interest in podcasts and audio series has driven sales of personal audio products like headsets and Bluetooth speakers, despite a slowdown in the electronics industry. The market for personal audio devices has seen significant growth, with true wireless headsets and neckbands leading the segment. Rising disposable incomes and affordable device options are contributing to this trend.Indians' new-found passion for podcasts and audio series has boosted sales of personal audio products like headsets and mini/Bluetooth speakers, bucking the consumption slowdown in the electronics industry, as per market researcher GfK India. Anant Jain, head of customer success for tech and durables at GfK said, "The Indian Audio Devices Market in offline retail is valued at Rs 5000 crore, reflecting increased consumer engagement and a shift towards superior quality, immersive audio experiences. As home and personal audio solutions become more sophisticated and accessible, they are becoming integral to the lifestyle of the Indian consumer." The true wireless headsets posted an increasing share of 38% in the personal audio headsets segment. This category leads with a 50% contribution by value in the audio market. Neckbands lead the segment in volume with a 55% contribution to sales. Mini/Bluetooth speakers posted a 15% year-on-year value growth, with entry-level products ranging up to Rs 2,000 driving 3% of sales by volume. The average selling price in the category has also been reduced by 18% to Rs 1,400, making it widely accessible. The personal audio segment has reported a 61% year-on-year volume growth and a 32% year-on-year value growth this year to June. The market for personal audio is valued at Rs 3,400 crore in India. "With rising disposable incomes, availability of affordable device options, a growing Gen Z population, and the expanding digital content consumption, there is increasing opportunity for these wireless technology devices with AI integration for smoother user experiences," Jain added. The overall home audio segment has posted a 6% year-on-year growth this year till June and is valued at Rs 1,600 crore. The audio home systems, which include compact stereo systems, smart audio, and home theatre, have seen an 11% year-on-year volume decline this year till June. Compact stereo systems contribute 90% to the overall sales. However, higher-end 5.1 and 6.1 channel systems are increasingly gaining popularity and contributing 23% to the sales, while the entry segment priced up to Rs 3,000 contributes 27% to the market. "The Home Audio market is evolving as consumers increasingly preferring compact, sleek, and wireless devices like soundbars over traditional audio home systems (AHS). Volume decline of 6% volume for AHS can be attributed to growing popularity of devices like Soundbars. Consumers today want flexible options, easy installation with an optimum price point with advanced & integrated features like Bluetooth connectivity, voice assistants, etc. Soundbars offer these along with immersive audio and option to expand the system in future. While we see decline in volume market for AHS but premiumization in this segment is seen with value market growth of by 23%," Jain added. North India contributes 31% of home audio sales. Smaller towns like tier 4-6 towns saw a rise in sales from 28% to 32% of the market. The loudspeaker segment saw a 24% year-on-year volume growth this year till June, reaching up to Rs 1,100 crore. 70% of the category sales come from large retail chains, while 30% comes from smaller towns and cities. South India, particularly cities like Bangalore, Chennai, and Hyderabad are emerging as hotspots for this category.