Market Trends of India Consumer Speaker Industry
This section covers the major market trends shaping the India Consumer Speaker Market according to our research experts:
Demand for Wireless Speakers to Grow Significantly
- Wireless Speakers run through infrared or radio transmission and, therefore, need not be connected to any central unit. These speakers allow consumers to connect to various platforms through smartphones and other Bluetooth and WiFi-enabled devices. India is observing higher use of portable speakers, owing to increased penetration of smartphones and other mobile devices along with the availability of online music and video streaming on digital platforms.
- The primary reason for the increasing adoption of consumer speakers in India is their ability to wirelessly stream audio content and enhance the overall sound experience for both wired and non-wired counterparts. Moreover, the integration of voice assistants, such as Google and Amazon, is also driving a shift in customer behavior of listening to music, thereby driving the market.
- Furthermore, the leading providers of wireless speakers, such as Google and Amazon, have been identifying new ways of building an ecosystem for smart speakers in India. Apart from providing an enhanced consumer experience, building trust for the secured use of these devices at home is the priority. At the same time, traditional speaker companies are merely planning to implement voice assistants in their devices to remain relevant.
- Companies in the country are looking to expand their product portfolio by introducing new products into the market. For instance, in June 2022, Zebronics introduced its Made in India wireless tower speaker, ZEB-BT800RUF. The company's mission is to innovate premium products for the masses by aligning with the Prime Minister's vision of going vocal for local and Aatma Nirbhar Bharat initiatives.
- Further, in May 2022, Bluei announced the launch of its latest R-series Bluetooth speaker in India, the Bluei R13 Rowdy. The Blueit R13 wireless speaker is claimed to be water-resistant, dustproof, offer 6-7 hours of playtime, and audio output of 10W with a new audio configuration.
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Rise of E-Commerce Industry to Drive the Growth
- The growing adoption of voice technology in shopping online is leading voice assistants to suggest products, thereby affecting people's connection with brands. With convenience, a brand's 'top of the mind' strategy in the consumer durables segment tends to play a bigger role in making a choice. Hence, the customer experience, once and for all, overtakes social media presence or general marketing.
- According to IBEF, India's e-commerce orders volume increased by 36% in the last quarter of 2020. In comparison, India's consumer digital economy is expected to become a USD 800 billion market by 2030, growing from USD 537.5 billion in 2020, driven by the strong adoption of online services such as e-commerce and Edtech in the country.
- Furthermore, Indian consumers are increasingly adopting 5G smartphones even before the rollout of the next-gen mobile broadband technology in the country. Smartphone shipments reached 150 million units, and 5G smartphone shipments crossed 4 million in 2020, driven by high consumer demand post-lockdown.
- The increasing internet penetration also supports the growth of the e-commerce sector in the country. With the digital penetration increase, there is an expected rise in the online sales of speakers as well, especially from the second and third-tier cities. According to Cisco, In India, it is expected that there will be 907.4 million total Internet users (64% of the population) by 2023, up from 398.2 million (29% of the population) in 2018.
- Furthermore, the partnerships between the vendors in the market and e-commerce platforms also push the segment's growth. For instance, the Flipkart Boat Bluetooth Speaker sales offered discounts of up to 70% on Bluetooth speakers. Moreover, online e-commerce companies offer hassle-free returns, vouchers, and fast delivery options, making them viable to buy electronics and other products.
- The launch of new speakers by companies exclusively on their online portals is also propelling the growth of online sales in the country. In November 2021, Apple's Homepod Mini smart speaker was directly launched online for INR 9,900. The company offers EMI options to purchase the speaker from their online store.
