Market Trends of India Wireless Speaker Industry
This section covers the major market trends shaping the India Wireless Speaker Market according to our research experts:
Increased Adoption of Online Streaming Services
- The primary reason for the increasing adoption of smart 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.
- The rapid transformation of digital streaming services has also increased the demand for portable and interoperable devices, such as wireless speakers in the country has seen an upward trend. India's audio streaming market is divided among domestic players, JioSaavn, Gaana, and Wynk, and global players Spotify, Amazon Music, Apple Music, and recent entrant YouTube Music. Furthermore, In March 2022, Krafton infused USD 19.5 million into the Indian audio content platform Kuku FM.
- For instance, according to Music Ally Ltd, Spotify doubled its subscribers in India over the year. It has hit 433 million monthly active users (MAUs), up 19 million (year-on-year) and above the company's guidance by 5 million. Moreover, in November 2022, Amazon launched a unique Prime Video Mobile Edition at INR 599 per year. This new subscription will target mobile users at a much lower cost than the standard plan. The Mobile Edition is a single-user, mobile-only annual program that will provide access to all the latest movies, Amazon Originals, LIVE cricket, Songs, and many more.
- Further, the growing interests of the country's higher class and the middle-class population toward experiencing premium sound quality for movies and shows over the OTT platforms are expected to boost the market's growth, driving the need for speakers.
- In January 2022, FiiO launched India's M17 Portable Desktop Class Music Player. The left and right audio channels contain a desktop-class, 8-channel ES9038PRO flagship DAC. Each audio track has eight parallel outputs summed together for superior resolution and minimal distortion for extremely pure audio reproduction.
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Online Distribution Channels is Expected to Witness Significant Growth
- Online channels are boosting smaller local players to venture into the market. For instance, Obage, a speaker manufacturer focusing on meeting the demand from Tier II and Tier III cities, sells its products through Amazon and Flipkart. Further, according to IBEF, the Growth of the sector is attributable to the trend of platforms such as YouTube that continues to offer contemporary and video content-linked music for free, which is expected to drive the paid OTT music sector to reach 5 million end-users by 2023, generating revenue of Rs. 2 billion (USD 27 million).
- To improve the availability of branded products in tier 2 cities, companies are working on improving the delivery network in smaller towns and villages. This will significantly help in the penetration of branded products in these markets. Collaborating with existing local delivery companies, emerging delivery startups, and Indian posts has helped to form a strong distribution network for companies in the region.
- According to IBEF, the number of smartphone users in India is expected to reach 887.4 million by 2030. Further, India has the highest data consumption rate worldwide, at 14.1 GB of data per person a month. By 2025, India will be home to 650 million users who consume short-form videos. Further, Mobile data in India is cheap, reliable, and widely available, allowing consumers to browse through E-commerce sites to compare, pick and choose according to their choice and price brackets. According to IBEF, India's E-commerce industry is expected to reach USD 99 billion in size by 2024.
- The programs from the e-commerce giants in the country, such as Amazon and Flipkart, also create new opportunities for the local players to expand their reach in the market.In September 2022, Amazon announced two Echo Dot speakers in India, one with a clock and one without a clock. The entry-level Echo Dot speaker includes improved audio, temperature sensors, and gesture control qualities.
- The launch of new speakers by companies exclusively on their online portals is also propelling the Growth of online sales in the country. Apple's intelligent Mini Homepod speaker was directly launched online for INR 9,900 (~USD 121.23). The company offers EMI options to purchase speakers from their online store.
- 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, especially from second and third-tier cities. According to a report published by IAMAI, India's internet users are expected to reach 900 million by 2025.
- 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 up to 70% discounts on Bluetooth speakers. Furthermore, online e-commerce companies offer hassle-free returns, vouchers, and fast delivery options, making them viable to buy electronics and other products.
