The Technavio research group (www.technavio.com) forecasts that the Bluetooth speaker market will grow at a compound annual growth rate of 33% through 2020.
One of the major factors driving the sale of Bluetooth speakers globally is its ability to stream audio content wirelessly and easily. Modern devices like laptops, smartphones, and tablets are equipped with Wi-Fi and Bluetooth connectivity enabling impressive streaming of content, which is another driving factor supporting the growth of the Bluetooth speaker market.
“Bluetooth speakers offer a multitude of benefits making them popular among consumers. These devices need no wiring, consume less space when compared to home theaters, and run on batteries, thus making them suitable for outdoor purposes. They promise durability, hassle-free maintenance, and faster functionalities. All these factors are propelling the demand for Bluetooth speakers, which in turn, is likely to contribute towards market growth,” says Ujjwal Doshi, a lead analyst at Technavio for consumer electronics research.
Many homes in developed countries such as the US and the UK are leveraging the Internet of Things (IoT) technology and remodeling to smart homes. These smart homes connect all consumer electronic devices, media and entertainment gadgets, and other smart electronics to a home network and enable them to interact with each other. The demand for smart homes is driven by energy saving requirements, convenience, and connectivity among the devices.
It’s also fueled by government initiatives for promoting smart homes for a better living. A popular example in building smarter homes is the widespread deployment of smart meters to conserve energy and for assistance on power line communication.
Since the inception of smart homes, North America has become the largest market for smart home systems. Bluetooth speakers facilitate the communication between the networked devices using the home network and provide easy streaming of contents such as music and videos.
“Smart homes market has already established its presence in the developed markets and is expected to flourish in the developing countries during the forecast period, leading to the growth of the Bluetooth speaker market globally,” says Ujjwal.
Vendors are constantly equipping their existing products with new technologies so as to improve the quality as well as user experience. This enables them to gain a competitive advantage and stay up to date in the market. Innovation in technology has merged woofers, tweeters, and separate sound systems into one single body, thus, offering premium sound quality and audio experience to the users.
Sony launched a Bluetooth speaker that streams music via NFC, AirPlay, and Wi-Fi. Another unique Sony product is the LED bulb speaker. This LED bulb when connected with E26 lightbulb socket, plays music without batteries, chargers, or cables and can be controlled through a smartphone, using SongPal app.
The introduction of wearable Bluetooth speakers, WristBoom for instance, is likely to attract customers. Price of such speakers ranges from $40 to $50, which is quite affordable. Therefore, innovation in technology plays a vital role in the adoption of Bluetooth speakers.