Home Audio and Cinema in Austria

2021 DEVELOPMENTS

Return to declines in 2021 following temporary boost during initial lockdowns

A number of home audio and cinema products, namely hi-fi systems, home cinema and speaker systems, and speakers, had benefited from the home seclusion trend as a result of the pandemic, when consumers invested in home entertainment during the first year of lockdowns in Austria. Nevertheless, 2021 is set to see the category returning to its declining trajectory despite further restrictions in place over the first half of the year due to another surge in virus numbers.

Some impulses from digital radio

The largest volume category of other home audio and cinema is predicted to remain the only positive performer in 2021. In addition to its much lower than average unit price, it continues to benefit from demand from soundbars (boosted by slimline compact design and high-quality audio in addition to being synced with smartphones and televisions), and the gradual growing support for radios supporting DAB+ as the new radio standard after the nationwide infrastructure for DAB was only completed in Austria in summer 2020 which required the purchase of new equipment.

Sony to retain leadership while smaller players continue to gain share from major names

Despite double-digit retail volume share held by leader Sony, the competitive landscape of home audio and cinema is becoming increasingly fragmented, with smaller players under “others” continuing to place pressure on existing companies. This is resulting in loss of share for leading names including Samsung Electronics Austria and Koninklijke Philips NV, ranked second and third, respectively.

PROSPECTS AND OPPORTUNITIES

Lack of potential for growth moving forward

Home audio and cinema is expected to experience a strengthening negative trend over the course of the forecast period as specific stand-alone audio devices are likely to become less common in Austrian households, particularly as consumers continue to switch to using their multifunctional smartphones or computers to listen to music while they are completing various tasks or simply relaxing. Wireless speakers (under portable players) was also a beneficiary of this development over the review period, although it is starting to struggle from some maturity following dynamic growth rates.

Limited demand for greater audio quality

The uncomplicated, constant availability of music through streaming services and the increasing habit of consumers relying on their smartphones for a wide range of applications and activities have resulted in waning demand for separate specific devices. The trend for convenient consumption of different media platforms is also reducing demand for greater audio quality amongst a mass audience, resulting in a declining group of audiophiles willing to spend on high-priced products such as speakers and audio separates.

Set-top boxes reinforce downward trend

Satellite and television receivers have long been a reliable backbone of sales for home audio and cinema in Austria. Over the forecast period, no strong innovations which have the potential to add excitement to the category are expected as players start to focus their product development on other areas of consumer electronics which offer greater potential for growth.