The Hi-Fi system market is expected to grow from US$13.6 billion in 2020 to $17.5 billion by 2025, at a compound annual growth rate of 5.2%, according to Research and Markets.
The research group says the growth can be attributed to several factors such as a rise in demand for infotainment services, high spending on R&D by manufacturers, innovations in wireless audio technology, and increasing adoption of portable devices. However, issues related to operating frequency compliance for wireless Hi-Fi systems and health issues about prolonged use of audio devices are expected to hamper the growth of the market.
The rising adoption of wireless audio systems is expected to drive the market for Hi-Fi systems during the forecast period, according to Research and Markets The growth of this segment can be attributed to the initiatives undertaken by manufacturers to increase the throughput of wireless audio devices equipped with various advanced technologies that are used in consumer electronics. Wireless technologies have started gaining momentum in the market as they do not require renovation or reconstruction, and minimize the requirement of wires, adds the research group.
The growing demand for wireless Hi-Fi systems and the concept of smart homes is expected to drive the market for the residential application. The rise in global demand for smartphones, computers, and tablets equipped with wireless headphones and headsets is also contributing toward the growth of the residential application, according to Research and Markets.