Home Entertainment - Israel | Statista Market Forecast

Revenue in the Home Entertainment market is projected to reach US$21.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.57%, resulting in a projected market volume of US$29.4m by 2029.
In the Home Entertainment market, the number of active households is expected to amount to 751.3k users by 2029.
Household penetration will be 10.2% in 2024 and is expected to hit 24.4% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$73.43.

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 Israel has been experiencing significant growth in recent years, driven by changing customer preferences and technological advancements.

Customer preferences: Israeli consumers have shown a strong preference for home entertainment products that offer convenience, flexibility, and high-quality content. With the increasing availability of streaming services, such as Netflix and Amazon Prime Video, there has been a shift towards digital content consumption. This trend is further fueled by the widespread adoption of smartphones and tablets, which provide easy access to online streaming platforms. Additionally, Israeli consumers are increasingly interested in home theater systems and smart TVs, which offer immersive entertainment experiences.

Trends in the market: One of the key trends in the Israeli Home Entertainment market is the rise of subscription-based streaming services. These services offer a wide range of content, including movies, TV shows, and documentaries, at a fixed monthly price. This model has gained popularity among consumers due to its affordability and convenience. As a result, traditional DVD and Blu-ray sales have declined, as consumers prefer the flexibility of streaming platforms. Another trend in the market is the increasing demand for smart home entertainment systems. These systems integrate various devices, such as smart TVs, speakers, and streaming devices, to provide a seamless and connected entertainment experience. Israeli consumers are embracing this trend as it allows them to control and customize their entertainment setup according to their preferences.

Local special circumstances: Israel has a vibrant and innovative technology sector, which has contributed to the development of cutting-edge home entertainment products and services. The country is home to several startups that are revolutionizing the way people consume and interact with entertainment content. This entrepreneurial spirit has led to the introduction of unique and localized solutions in the Home Entertainment market.

Underlying macroeconomic factors: Israel has a strong economy with a high standard of living, which has enabled consumers to invest in home entertainment products and services. The country has a young and tech-savvy population that is willing to adopt new technologies and embrace digital content consumption. Additionally, the government has been supportive of the technology sector, providing incentives and funding for startups, which has further fueled innovation in the Home Entertainment market. In conclusion, the Home Entertainment market in Israel is experiencing growth due to changing customer preferences, technological advancements, and a supportive macroeconomic environment. The rise of streaming services, demand for smart home entertainment systems, and the presence of a vibrant technology sector are driving the development of the market. Israeli consumers are increasingly seeking convenience, flexibility, and high-quality content in their home entertainment experiences.

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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