Home Entertainment - Latvia | Statista Market Forecast

Revenue in the Home Entertainment market is projected to reach US$3.3m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.68%, resulting in a projected market volume of US$4.2m by 2029.
In the Home Entertainment market, the number of active households is expected to amount to 88.1k users by 2029.
Household penetration will be 7.0% in 2024 and is expected to hit 11.5% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$58.98.

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 Latvia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Latvian consumers have shown a strong preference for home entertainment products and services. With the advancement of technology, there is a growing demand for high-quality audio and video systems, gaming consoles, and streaming services. Customers are increasingly looking for immersive experiences that can be enjoyed in the comfort of their own homes.

Trends in the market: One of the key trends in the Home Entertainment market in Latvia is the shift towards digital streaming services. With the increasing availability of high-speed internet and the rise of platforms like Netflix and Amazon Prime Video, more and more consumers are opting for online streaming over traditional cable or satellite TV. This trend is driven by the convenience and flexibility offered by streaming services, allowing consumers to access a wide range of content on-demand. Another trend in the market is the growing popularity of gaming consoles. Gaming has become a mainstream form of entertainment, attracting a wide range of consumers across different age groups. The launch of new gaming consoles with advanced features and graphics has further fueled the demand for gaming products in Latvia.

Local special circumstances: The relatively small size of the Latvian market and the limited availability of local content have contributed to the growing popularity of international streaming services. With a smaller domestic market, local content production has been limited, leading consumers to seek entertainment options from global providers. This has created opportunities for international streaming platforms to cater to the Latvian market.

Underlying macroeconomic factors: The improving economic conditions in Latvia have also played a role in the growth of the Home Entertainment market. As disposable incomes increase, consumers have more purchasing power to invest in home entertainment products and services. The growing middle class in the country has led to an increase in consumer spending on leisure and entertainment, driving the demand for home entertainment products. In conclusion, the Home Entertainment market in Latvia is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards digital streaming services, the popularity of gaming consoles, the limited availability of local content, and the improving economic conditions in the country are all contributing to the development of the market.

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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