Home Entertainment - North America

Revenue in the Home Entertainment market is projected to reach US$4.1bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.64%, resulting in a projected market volume of US$4.6bn by 2029.
In the Home Entertainment market, the number of active households is expected to amount to 58.5m users by 2029.
Household penetration will be 16.6% in 2024 and is expected to hit 32.3% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$139.70.

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 North America has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the Home Entertainment market in North America is the increasing demand for high-quality audio and video experiences. Customers are seeking immersive entertainment options that provide a cinematic experience within the comfort of their own homes. This has led to a rise in the popularity of technologies such as 4K Ultra HD and Dolby Atmos, which deliver superior picture and sound quality. Customers are also increasingly looking for convenience and flexibility in their home entertainment options, with streaming services gaining popularity over traditional cable and satellite TV.

Trends in the market: One of the major trends in the Home Entertainment market in North America is the shift towards streaming services. With the rise of platforms such as Netflix, Amazon Prime Video, and Disney+, customers now have access to a wide range of content at their fingertips. This trend has been further accelerated by the COVID-19 pandemic, as people spent more time at home and turned to streaming services for entertainment. As a result, traditional cable and satellite TV providers have been facing challenges in retaining customers. Another trend in the market is the increasing adoption of smart home technologies. Customers are now able to control their home entertainment systems through voice commands or smartphone apps, making it more convenient and user-friendly. This has led to a growing demand for smart TVs, soundbars, and other connected devices that can seamlessly integrate with other smart home devices.

Local special circumstances: The Home Entertainment market in North America is highly competitive, with a large number of players vying for market share. This has led to intense competition and innovation in the industry, with companies constantly striving to offer new and improved products and services to attract customers. Additionally, North America has a large and affluent consumer base, which provides a lucrative market for home entertainment products and services.

Underlying macroeconomic factors: The growth of the Home Entertainment market in North America can be attributed to several underlying macroeconomic factors. Firstly, the region has a strong and stable economy, which has resulted in increased consumer spending power. This has allowed customers to invest in high-quality home entertainment systems and services. Secondly, technological advancements have made home entertainment more accessible and affordable, further driving market growth. Lastly, changing lifestyles and preferences have also contributed to the growth of the market, as customers prioritize convenience and personalized entertainment experiences. In conclusion, the Home Entertainment market in North America is experiencing significant growth due to customer preferences for high-quality audio and video experiences, the shift towards streaming services, the adoption of smart home technologies, intense competition in the industry, and underlying macroeconomic factors such as a strong economy and technological advancements.

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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