Audio device segment in offline retail hits ₹5,000 cr: GfK

BL New Delhi Bureau Updated - September 12, 2024 at 07:51 PM.
There is increasing opportunity for these wireless technology devices with AI integration for smoother user experiences

The overall audio devices market in offline retail hit ₹5,000 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 ₹3,400 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 ₹ 1,100 cr, signaling its growing appeal among Millennials and Gen Z, tech-savvy consumers.

Published on September 12, 2024 13:41

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