Home Entertainment - EU-27 | Statista Market Forecast

Revenue in the Home Entertainment market is projected to reach US$2.4bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.11%, resulting in a projected market volume of US$2.8bn by 2029.
In the Home Entertainment market, the number of active households is expected to amount to 93.6m users by 2029.
Household penetration will be 13.7% in 2024 and is expected to hit 47.9% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$90.36.

Definition:

Home Entertainmentmarket comprises the sale of products for multi-room entertainment (e.g., sound systems) as well as connected remote controls and streaming devices (e.g., Amazon Fire TV stick, Google Chromecast).
General, freely programmable buttons and switches (see Control & Connectivity) or light bulbs for different lighting scenarios (see Comfort & Lighting) are not included. Smart TVs are also not considered here because their functions are, in most cases, not directly controlled via the Internet but networking is primarily used for the retrieval of media content.

Additional Information:

The market comprises revenue, average revenue per smart home, number of smart homes so as the household penetration rate by smart home, and key players. Figures are generated through both online and offline sales channels and include exclusive spending by consumers (B2C). Market leaders include Amazon, Google, Harman Kardon, Samsung, Bose, and other brands renowned for their innovation, brand recognition, and expansive distribution channels within their respective categories. For more information on the data displayed, use the info button right next to the boxes.

Digitally connected and controlled devices for entertainment purposes
Various multiroom entertainment systems (audio and/or video) with a primary focus on entertainment (e.g., Juke 6& 8, Sonos Era 100 Arc 5.1 Heimkino Set)
Streaming devices (e.g., Amazon Fire TV stick, Google Chromecast)
Entertainment remotes

Classical entertainment devices without smart home connection
Smart TVs and receivers without smart home integration
Smart speakers with a primary focus on Control & Connectivity (Amazon Echo, Google Home etc.)
B2B/C2C sales of any kind (e.g. to hotels or office buildings)

The Home Entertainment market in EU-27 is experiencing significant growth and development. Customer preferences are shifting towards more immersive and interactive entertainment experiences, leading to a rise in demand for advanced technologies such as virtual reality (VR) and augmented reality (AR). Additionally, the increasing popularity of streaming services and the availability of high-speed internet connections are driving the adoption of online content consumption.

Customer preferences: Customers in the EU-27 are increasingly seeking entertainment options that provide a more immersive and interactive experience. This has led to a growing demand for technologies such as virtual reality (VR) and augmented reality (AR). These technologies allow users to engage with content in a more immersive and realistic way, enhancing the overall entertainment experience. Additionally, customers are also gravitating towards streaming services, as they offer a wide variety of content that can be accessed conveniently from any device with an internet connection.

Trends in the market: The Home Entertainment market in the EU-27 is witnessing a surge in the popularity of streaming services. With the increasing availability of high-speed internet connections, customers are opting for online content consumption over traditional methods such as cable or satellite TV. Streaming services offer a vast library of movies, TV shows, and documentaries, allowing customers to access their favorite content at their convenience. This trend is expected to continue as streaming platforms invest in original content production and improve their user experience. Another significant trend in the market is the adoption of virtual reality (VR) and augmented reality (AR) technologies. VR headsets and AR devices are becoming more affordable and accessible to consumers, leading to an increase in demand for immersive entertainment experiences. These technologies enable users to explore virtual worlds, play interactive games, and watch movies in a whole new way. As the technology continues to evolve and become more sophisticated, it is expected to revolutionize the home entertainment industry.

Local special circumstances: Each country within the EU-27 has its own unique cultural preferences and local special circumstances that influence the Home Entertainment market. For example, countries with a strong gaming culture may see a higher adoption rate of VR and AR technologies for gaming purposes. On the other hand, countries with a rich film industry may have a greater demand for streaming services that offer a wide range of movies and TV shows. Additionally, language preferences and content availability in different regions may also impact customer choices in the home entertainment market.

Underlying macroeconomic factors: The growth and development of the Home Entertainment market in the EU-27 can be attributed to several underlying macroeconomic factors. The increasing disposable income of consumers has allowed them to spend more on entertainment and leisure activities. Additionally, advancements in technology have made home entertainment more accessible and affordable to a larger segment of the population. Furthermore, the COVID-19 pandemic has accelerated the adoption of online content consumption as people spent more time at home and sought entertainment options within their households. These factors have contributed to the overall growth and development of the Home Entertainment market in the EU-27.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

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