Home Audio and Cinema in Canada

2021 DEVELOPMENTS

Economic stabilisation will moderate rate of decline in retail current value sales

Retail current value sales of home audio and cinema declined at their fastest rate in more than a decade during 2020. Even before the onset of the pandemic, demand for home audio and cinema was being steadily cannibalised by smartphones and wireless speakers, and the economic shock of COVID-19 exacerbated this trend by leading many local consumers to reduce their discretionary spending – particularly on big-ticket items like Hi-Fi systems and audio separates.

Wide product range and broad distribution help Sony strengthen its leadership

Leader Sony of Canada Ltd will continue to increase its retail volume share in home audio and cinema during 2021. It offers a wide range of products across a variety of price points that is regularly augmented with new launches.

Sleek design and connectivity key to the growing popularity of soundbars

Home cinema and speaker systems will be the top performer in home audio and cinema during 2021, with soundbars the main driver of this. Their ability to connect with multiple devices is key to their appeal, in addition to sleek designs that enable them to blend easily into most living spaces.

PROSPECTS AND OPPORTUNITIES

Growing popularity of soundbars will lead to slowdown in rate of decline in retail current value sales of home audio and cinema

Retail current value sales of home audio and cinema will continue to decline throughout the forecast period, albeit at a more modest rate than in the review period. Home cinema and speaker systems will be the only segment to exhibit retail current value sales growth, with the growing popularity of soundbars the main driver of this.

Voice assistant integration will become increasingly commonplace

As internet-of-things technologies, such as voice control, seep through every aspect of home entertainment, consumers will increasingly expect a more polished, automated, personalised and seamless home entertainment experience. As a result, smart features like integrated voice assistants will become more common in home audio and cinema, particularly soundbars.

Samsung appears best placed to challenge Sony

Despite the fact that it remains a distant second to Sony in terms of retail volume share, second-placed Samsung offers high-quality models at a more accessible price point than Sony. For example, its 2021 entry-level models include Dolby Atmos and offer advanced connectivity and personalisation.