Download - Wireless audio device market study

Transcript
Page 1: Wireless audio device market study

Wireless Audio Device Market Study

Prepared by Kevin HuangDecember 29, 2015

Page 2: Wireless audio device market study

Page 2

What is a wireless audio device?•

Page 3: Wireless audio device market study

Page 3 Source: https://goo.gl/vv0wug

Home audio hardware market outlook: by device type••

2753

North America currently dominates, accounting for 43% of the worldwide market. However, that is expected to fall to 38% by 2019 due, partly to the increasing popularity of wireless speakers in the Asia Pacific market.val

ue(in

billion

)

Page 4: Wireless audio device market study

Page 4

Wireless connectivity driving the $10 billion global home audio market•

Source: https://goo.gl/42drp8

Page 5: Wireless audio device market study

Page 5

What’s driving the market growth

Page 6: Wireless audio device market study

Page 6

More competitors entering the market

Page 7: Wireless audio device market study

Page 7

•In North America, the U.S. constituted largest market share revenue. However, Asia Pacific, with Japan, Australia and China leading the way, is likely to grow at the highest CAGR.

Wireless audio device market segmentation

The high adoption of innovation technology solution and continuous innovation are major driver of wireless audio device market. The technologies for wireless audio device are AirPlay, Bluetooth, Wi-Fi, and others. The other market includes SKAA technology.

The product market for wireless audio device is divided into sound bars, wireless speakers systems, headsets and microphone, and others. The other segment includes power amplifier, radio tuner, A/V controller.

The major applications of the wireless audio device market are seen in consumer and home application, commercial, automotive, and special application. The special application market is consisting of defense and security.

Page 8: Wireless audio device market study

Page 8

Best-selling wireless audio devices

Page 9: Wireless audio device market study

Page 9

Amazon home audio category page

Page 10: Wireless audio device market study

Page 10

Amazon wireless & streaming audio category page

Page 11: Wireless audio device market study

Page 11

Amazon speakers category page

Page 12: Wireless audio device market study

Page 12

Best-selling wireless multiroom speakers

Sonos Bose (as of Dec. 26, 2015)

Page 13: Wireless audio device market study

Page 13

Best-selling wireless soundbar speakers

Vizio Sonos (as of Dec. 26, 2015)Samsung LGBose

Page 14: Wireless audio device market study

Page 14

Amazon wireless soundbar speakers page

Page 15: Wireless audio device market study

Page 15

Best Buy home audio category page

Page 16: Wireless audio device market study

Page 16

Best-selling wireless multiroom speakers

Sonos Sony

(as of Dec. 26, 2015)

Bose

Page 17: Wireless audio device market study

Page 17

Best-selling wireless soundbar speakers

Vizio Sony(as of Dec. 26, 2015)

Samsung LGBose Insignia

Page 18: Wireless audio device market study

Page 18

Hardware comparisons

Page 19: Wireless audio device market study

Page 19

Wireless audio devices - speakers

Sonos Play:1 Play:3 Play:5MSRP $199 $299 $499

Audio formats supportedSupport for compressed MP3, iTunes Plus, WMA (including purchased Windows Media downloads), AAC (MPEG4), AAC+, Ogg Vorbis, Apple Lossless, FLAC (lossless) music files, as well as uncompressed WAV and AIFF files. Native support for 44.1kHz sample rates. Additional support for 48kHz, 32kHz, 24kHz, 22kHz, 16kHz, 11kHz, and 8kHz sample rates.

Tweeter 1Mid-Woofer/Bass RadiatorStereo Pair

1/0

10/100Mbps x 1

Amplifier Two Class-D digital amplifiers

V

Ethernet PortWireless connectivity WiFi (802.11b/g)

Internet radio supported VMusic services supported V

Weight 4.08 lbs.(1.85 kg)

Dimensions (WxHxD) 4.69”x6.36”x4.69”

12/1

10/100Mbps x 1

Three Class-D digital amplifiers

V

WiFi (802.11b/g)V

5.71 lbs.(2.6 kg)

10.6”x5.2”x6.3”

33/0

10/100Mbps x 1

Six Class-D digital amplifiers

V

WiFi (802.11b/g)V

14 lbs.(6.36 kg)

14.33”x8.03”x6.06”$499.95

V

WiFi (802.11 b/g/n)+BTV

25.75 lbs.

17.1"x9.7”x7.1"

Bose SoundTouch30 Series

MP3, WMA, AAC, FLAC, Apple Lossless

N/AN/AN/A

$349.95

10/100Mbps x 1+ USB x 1

V

WiFi (802.11 b/g/n)+BTV

7 lbs.

Bose SoundTouch20 Series

N/AN/AN/A

12.4”x7.4"x4.1"

V V VV

Page 20: Wireless audio device market study

Page 20

Wireless audio devices - speakers

Denon Heos 1 Heos 3 Heos 5MSRP $199.99 $299.99 $399.99

Audio formats supported

Tweeter 1Mid-Woofer/Bass RadiatorSubwoofer

1/0

Amplifier Two Class-D digital amplifiers

N/A

Ethernet/USB PortWireless connectivity WiFi (dual band “N”)

Internet radio supported VMusic services supported V

Weight 3.13 lbs.

Dimensions (WxHxD) 5.08”x7.44”xx5.04”

Dual active wide range driversN/A

Two Class-D digital amplifiers

N/A

V

4.2 lbs.

10.7”x5.1”x6.5”

22/1

Four Class-D digital amplifiers

N/A

V

6.6 lbs.

11.6”x8.2”x6.5”$599.99

10/100Mbps x 1+ USB x 1

1

V

9.9 lbs.

Heos 7

22/2

18.9”x8”x6.5”

V V V

Five Class-D digital amplifiers

MP3 and WMA music files, including purchased WMA downloads, as well as AAC (MPEG4) and FLAC (lossless) file types, along with WAV files. Supports 32 kHz, 44.1 kHz and 48 kHz sampling rates.

10/100Mbps x 1+ USB x 1

WiFi (dual band “N”) WiFi (dual band “N”) WiFi (dual band “N”)10/100Mbps x 1

+ USB x 110/100Mbps x 1

+ USB x 1

Page 21: Wireless audio device market study

Page 21

Wireless audio devices - speakers

SamsungRadiant360 R1MSRP $249 $179

Audio formats supported AAC, MP3, WAV, WMA, ALAC, AIFF, OGG, FLAC

TweeterWooferSmart Hi-Fi (DLNA)

Speaker Power Output

Ethernet/Google CastWireless connectivity

Internet radio supported VMusic services supported V

Weight 3.09 lbs.

Dimensions (WxHxD) 4.84”x9.21”x4.84”N/A

1” x 13.6” x 1

N/A

N/A

SamsungRadiant360 R3$329 $229

VV

4.41 lbs.

5.67”x10.75”x5.67”

WiFi (2.4/5GHZ DUAL BAND) + BT 4.0 + Micro USB

N/A1” x 1

4.2” x 1N/A

N/A

SamsungRadiant360 R5$499 $299

VV

3.09 lbs.

6.53"x12.3"x6.53"N/A

1” x 15” x 1N/A

N/A

SamsungRadiant360 R7$599 $379

VV

7.5 lbs.

7.13"x16.61"x7.13"N/A

1” x 15” x 1N/A

N/A

LG MusicFlow H4$199.99

VV

1.8 lbs.

7.64”x2.52”x2.76”40W

N/AN/AV

V/V

MP3, WAV

WiFi + BT 4.0 + NFC

LG MusicFlow H5$279.99

VV

13.4"X8.1"X3.5"

20mm x 23” x 2V

$379.99

VV

14.6"x9.1"x4.3"

V

AAC, MP3, WAV, WMA, ALAC, AIFF, OGG, FLAC

7.17 lbs.V/V V/V

20W

9.02 lbs.

70W20mm x 2

4” x 2

WiFi + BT 4.0

LG MusicFlow H7

Page 22: Wireless audio device market study

Page 22

Wireless audio devices - soundbars

Sonos Playbar Vizio 2.0 systemMSRP $699 $79/$99

Audio formats supportedSupport for compressed MP3, iTunes Plus, WMA (including purchased Windows Media downloads), AAC (MPEG4), AAC+, Ogg Vorbis, Apple Lossless, FLAC (lossless) music files, as well as uncompressed WAV and AIFF files. Native support for 44.1kHz sample rates. Additional support for 48kHz, 32kHz, 24kHz, 22kHz, 16kHz, 11kHz, and 8kHz sample rates.

Tweeter 3Mid-Woofer/Bass Radiator3.0/3.1/5.1 Home Theater

6/0

10/100Mbps x 1

Amplifier Nine Class-D digital amplifiers

Pair with SUB/Play:1

Ethernet PortWireless connectivity WiFi (802.11b/g)

Internet radio supported MP3, WMAMusic services supported V

Weight 11.9 lbs.(5.4 kg)

Dimensions (HxWxD) 85x900x140mm

4.5/5.75 lbs.

29”/38”

Sound pressure level 95/100 dBLow frequency 70/60 Hz

USBWireless range (Sub)

/Bluetooth V1

Weight

Audio Decoding Technology Dolby Digital

Audio Enhancement Technology

DTS TruVolumeDTS TruSurround

Vizio 2.1 system$159 $139

Vizio 5.1 system$349 $299.99

Sound Bar SizeSound Bar Speakers 2.5”/2.75” x 2

Analog/Digital AudioSubwoofer support V

5.8/7.21 lbs.

38”

100 dB50 Hz

60ft./V1

Dolby DigitalDTS TruVolumeDTS TruSurround

2.75” x 2

V

7.45/12.48 lbs.

40”

102 dB

60ft./V with aptX1 + HDMI x 1

Dolby DigitalDTS TruVolumeDTS TruSurround

2.75” x 3 + 6” Sub

V

L&R: 90 Hz – 20 kHz, Center: 160 Hz – 20 kHz, Sub: 50 Hz – 90 Hz

Page 23: Wireless audio device market study

Page 23

Wireless audio devices - soundbars

SamsungHW-J250 Soundbar

Samsung HW-J450 Soundbar w/ Wireless SubMSRP $149 $129 $309 $229

Audio formats supported

Tweeter N/AMid-Woofer/Bass RadiatorBuilt-in Subwoofer

N/A

V/X

Power Output 80W/2.2-channel

V

USB/HDMI PortWireless connectivity BT

Internet radio supported VMusic services supported V

Weight 4 lbs.

Dimensions (WxHxD) 28.35"x2.64"x2.95"

AAC, MP3, WAV, WMA, OGG, FLAC

N/AN/A

V/V

300W(140W Sub)2.1-channel

N/A

BT

VV

3.5/5.1 lbs.

37.68"x2.34"x2.62"7.05" x 14.21" x 11.79"

LG LAS 454B 2.1ch300W Sound Bar

$139

N/AN/A

V/X

300W(200W Sub)/2.1-channel

N/A

BT 4.0

VV

5.4/12.1 lbs.

37.4"x2.8"x1.9"6.7"x15.4"x10.3"

LG LAS 551H 2.1ch320W Sound Bar

$269

N/AN/A

V/V

320W(200W Sub)/2.1-channel

N/A

BT 4.0

VV

6.2/12.6 lbs.

35.04"x2.01"x3.35"6.73"x15.35"x10.28"

AAC, MP3, WAV, WMA, OGG, FLAC

Page 24: Wireless audio device market study

Page 24

One of the first companies to announce support was Sony with its new STR-DN1060 and STR-DN860 receivers, as well as a set of dedicated streaming speakers. LG's Music Flow and Denon Heos are also on board. Meanwhile, Sony also debuted its own streaming feature called SongPal Link, which works in a similar way to these other technologies: Wi-Fi streaming via a smartphone app.”

New technology & innovation

Source: http://goo.gl/B4nwgu

Page 25: Wireless audio device market study

Page 25

New technology & innovation

Source: http://goo.gl/HV5mkc

LG has announced not one but three new wireless multiroom sound bars for 2016 to replace the existing LAS751.The SH8 and the SH7 offer a wireless subwoofer and slightly different cosmetics to last year's version. Meanwhile the SH6 comes without a sub but features "dual bass ports" to enhance bass response.All three models feature Wi-Fi -- with compatibility for LG's Music Flow system as well as Google Cast and LG's "Auto Music Play" -- in addition to Bluetooth connectivity.The models include "BT-Fi," which "automatically switches the connectivity method based on the content source, eliminating the need to manually switch connectivity methods if playing music from different content partners." We're getting clarification from LG what this means, but our guess is it can switch between Bluetooth and Wi-Fi automatically.Also new is Adaptive Sound Control feature, which alters the sound mode of the bar according to the type of content you're watching.

Page 26: Wireless audio device market study

Page 26

What it takes to be successful

Page 27: Wireless audio device market study

Page 27

Wireless Soundbar Market

Page 28: Wireless audio device market study

Page 28

Cramming high-quality audio components – good sounding speakers, high-quality amplification and low-resonance cabinet – into the confines of a flat-panel HDTV simply isn’t a feasible solution. The trends of the HDTV market are constantly working against the designer. As a result, most flat-panel HDTVs provide at best a below-average audio experience, characterized by tepid output power through tiny speakers that, more often than now, are incapable of meeting consumer’s expectations when compared to the video experience.

Consumers demand for better sound

Page 29: Wireless audio device market study

Page 29

Consumer interest in smart homes crucial for soundbar market growth

• Flexible Audio Streaming Capacity: The wireless connectivityabundant in smart homes means that speakers riddled with thetraditional, cluttering wiring units and specific, limiting wiredconnectivity options are on the way out. Instead, wireless soundbarsfill this void perfectly, fulfilling the needs of smart homes.• Rising Disposable Income: The growing preference for smarthomes also reflects the increasing purchasing power of the averagebuyer thanks to increasing disposable incomes. This helps consumerspurchase technologically advanced equipment rather than settling forthe bare minimum, which will help the soundbar market grow,especially in developed regions such as North America and Europe.• Product Bundling: The growing trend of smart homes is also givingrise to the trend of product bundling in the residential constructionindustry. This consists of multiple technologically compatible productsbeing sold in a single package. The high rate of inclusion of soundbarsin such packages will help the soundbar market grow.

Source: http://goo.gl/hsFMmS

Page 30: Wireless audio device market study

Page 30

NPD: soundbars not just about TV sound

The preferred streaming device for audio content is smartphones, with 23 percent of soundbarowners streaming music and podcasts via their smartphones.

Source: http://goo.gl/m01qB3

Page 31: Wireless audio device market study

Page 31

Brand View has reviewed the pricing of soundbars, excluding those with separate subwoofers, in Best Buy and Target. Best Buy had more than four times the number of soundbar listings than Target, with 43 and 10 listings respectively.Some 60 percent of Target’s soundbar listings were priced at less than $149.99; brands within this price bracket included RCA and VIZIO. Best Buy had the most listings, 34.9 percent, in the $150 – $299.99 price range compared to just 23.3 percent below $149.99.The most expensive soundbar that Target listed is the Sonos PLAYBAR, priced at $699.99; Best Buy also listed this item, at one cent less, $699.98. The most expensive unit in Best Buy was the Niles – Cynema SoundfieldSoundbar System, costing $1999.99.

Soundbar pricing analysis

Source: http://goo.gl/9vkuqU

Page 32: Wireless audio device market study

Page 32

Wireless soundbars market to boom

Page 33: Wireless audio device market study

Page 33

Wireless soundbars market to boom

Page 34: Wireless audio device market study

Page 34

Wireless soundbars market to boom

Page 35: Wireless audio device market study

Page 35

Visio is the leading brand in the U.S.

Page 36: Wireless audio device market study

Page 36

Visio soundbar merchandising

Page 37: Wireless audio device market study

Page 37

Earning good product reviews are important

Page 38: Wireless audio device market study

Page 38

Future of the soundbar market

Page 39: Wireless audio device market study

Page 39

Why the latest LG soundbar will be music to millennials' ears

The LG Music Flow HS8 Wireless Curved Sound Bar

Offering up to 360 watts of sound, the Music Flow HS8 can automatically distinguish what type of content it is broadcasting and optimize its sound to suit.This system, called i-Sound, means that there's no need to mess with levels or equalization when switching between blockbusters, live sports and music videos.But what's more, the curved soundbar is also designed to work with most mobile devices via Bluetooth or wi-fi and can be used with a host of music streaming services via Google Cast.Wi-fi connectivity also means that the HS8 can work in concert with other LG Music Flow speakers around the home.

Source: https://goo.gl/eh0UYt

Page 40: Wireless audio device market study

Page 40

Connected speaker market heats up with super high-end devialet phantom

The Phantom has both WiFi and Bluetooth radio chips. Bluetooth has been typically looked down on by audiophiles, but the company decided to include Bluetooth in the U.S. version because the company wanted to make streaming music from smartphones as easy as possible.

Source: http://goo.gl/IpHlBJ

Page 41: Wireless audio device market study

Page 41

Case Study: Sonos

Page 42: Wireless audio device market study

Page 42

Ditch Your Old Hi-Fi: Wireless Speakers Make Home Audio EasierBose, Denon, Raumfeld, Devialet and others now make Wi-Fi stereo speakers—can any beat Sonos?

The key to Sonos’ success is its software. Sonos apps for iPhone, Android, PC and Mac are reliable, and make it easy to get to your music, even if you’re sharing with a family. With a few taps, you’re beaming different songs to different rooms, or bopping around the house to the same track on “party mode.”

Source: http://goo.gl/WQ9Pki

Page 43: Wireless audio device market study

Page 43

Sonos product mixPri

ce

$199

$299

$399

$499

$599

$699

$799

PLAY 1:$199

PLAY 3:$299

PLAY 5:$499

PLAYBAR$699

SUB$699

CONNECT$349

CONNECT:AMP$499

Speakers Components Home Theater

Page 44: Wireless audio device market study

Page 44

Sonos key U.S. channel partners

Page 45: Wireless audio device market study

Page 45

Retail merchandising

(End cap design)

(Shop in shop)(Island display) (Inline display)

Page 46: Wireless audio device market study

Page 46

Retail merchandising - Bose

Page 47: Wireless audio device market study

Page 47

Sonos brand identity

This new iteration of the Sonos visual identity advances the idea of the modern music experience—an idea that is not singular or monolithic, but rather a rich array of expression. Performance imagery from Sonos Studio, new product photography and the introduction of three versatile graphic tools deliver a creative and variable language that still provides the stability of a recognizable system.

Page 48: Wireless audio device market study

Page 48

Sonos advertising

Page 49: Wireless audio device market study

Page 49

With tech giants moving in on its turf, sonosembraces pricey media buys

This year (2015) the company expects to achieve $1 billion in sales, nearly double its total from 2013. In the overall wireless speaker market, it sits comfortably in second place with a 16% dollar share, trailing only Bose, which has a 22% share, according to the NPD Group. The gap in ad spend is far wider -- although Bose sells more products, including its signature headphones -- with Bose outspending Sonos ten to one in 2013.Source: http://goo.gl/nQvVD2

Page 50: Wireless audio device market study

Page 50

Sonos super bowl commmercial: A big break for wireless audioDespite having a much smaller wallet, Sonos ponied up an estimated $4 million for a 30-second ad to introduce the world to wireless whole-house audio. Taking part in the largest platform in American professional sports, and the advertising industry’s marquee event, Sonos answered pundits’ questions about how it would respond to the challenge of companies such as Bose, Samsung and others entering a category it single-handedly developed.

By advertising during Super Bowl XLVIII between the Denver Broncos and now world champion Seattle Seahawks, Sonos demonstrated to dealers how much it values its position as a market leader and showed an estimated 70 percent of American homes that they don’t need to completely remodel their homes to stream audio throughout their homes.

Source: http://goo.gl/Njz2Ab

(click to play the video)

Page 51: Wireless audio device market study

Page 51

For Sonos, music is more about 'how' than 'what'With everyone carrying around a lifetime’s worth of songs in their pockets (and even more on the Internet), the modern music experience is as much about how you listen to it as what you listen to.In a new marketing campaign, Sonos enlists a bevy of notable music artists such as Rick Rubin, Q-Tip, Gary Clark Jr. and St. Vincent to attest to the experience of listening to music out loud in their homes.

(click to play the video)Source: http://goo.gl/uX4CiJ

Page 52: Wireless audio device market study

Page 52

Sonos TV commercials & product videos

Page 53: Wireless audio device market study

Page 53

During the Academy Awards one of the TV spots that stood out came from Sonos. In it, the wireless audio system covered an entire living room in Oscar gold. To extend the commercial's reach online, the brand ran promoted tweets using the same creative asset, targeting searches around the event.

Sonos social mediaUse Twitter for Cross-Channel Marketing Social Media Followers

466K26.5K105K19.3K

(as of Oct 6, 2015)

(as of Dec. 27, 2015)

Page 54: Wireless audio device market study

Page 54

Event sponsorships

Watch the video here.

Page 55: Wireless audio device market study

Page 55

Event sponsorships

Page 56: Wireless audio device market study

Page 56

Event sponsorships

Page 57: Wireless audio device market study

Page 57

Top 10 innovative brands 2014: #8 sonos

Sonos is so committed to letting consumers experience its products in organic settings that it set up a permanent, acoustically tricked-out space exclusively dedicated to that goal. The Sonos Studio in Los Angeles opened in 2012 and hosts about 30 events annually, courting guests including media folks, influencers, and consumers for performances, premieres, listening parties, and artist collaborations.“

,” says Sonos senior PR manager Eric Nielsen, who confirmed that experiential marketing is a “significant part of marketing spend.”

“Someone can tell you [a product is] cool, but that magic doesn’t happen until you can experience it yourself,” says Sonos senior marketing manager of culture Ivan Entchevitch. “We want people to come away and learn something they didn’t know before. You see people come in and just lose themselves like kids.”

Source: http://goo.gl/GpxyBC

Page 58: Wireless audio device market study

Page 58

How Sonos do branding

The speaker brand Sonos is a good example. The driver of brand value for high-end speaker systems used to be design, sound quality, and big retail events. Sonos went beyond this by building an app that connects its speakers to services like Spotify and Pandora, and recommends personalized music for customers using its own algorithm. Users communicate with Sonos every time they listen to music in their homes. Through this interface, users can follow other stations, create playlists, and see other users’ behavior. And the brand becomes more valuable for each individual user as more join. The company doubled its revenue last year (2013-2014) to more than $1 billion and its systems are installed in more than 1 million homes in the U.S. alone.Source: https://goo.gl/kuBf0H

Page 59: Wireless audio device market study

Page 59

Looking at marketing innovation at Sonos

Sonos products have long had a following amongst audiophiles and tech geeks. But in the past few years the company has expanded its brand awareness significantly, succeeding in making something that is basically sort of nerdy (audio equipment) feel young, progressive and cool.

For starters, the company has acted like a talent scout for the past few years, enlisting a who’s who of about-to-be-huge musicians like DJ Questlove, Janelle Monae and Deadmau5.They’ve constructed the Sonos Studio in Los Angeles, an acoustically-designed gallery in the heart of the city that celebrates music listening. A network of notable collaborators participate in, and co-develop, listening parties, film screenings, art installations, workshops and live musical performances. It’s been a consistent generator of buzz (and cool) for two years now.In January, Sonos aggressively entered the world of Super Bowl advertising, a sphere usually marked by more traditional consumer brands, with this remarkable spot that listed legendary hip-hop producer Rick Rubin as executive music producer.

Sonos has built a hot consumer brand in a remarkably short period of time in a very competitive industry: consumer audio. Founded in 2003, the company has established itself as a consumer audio heavyweight with innovative products, distinguished marketing and great press.

Source: http://goo.gl/rioUho

Page 60: Wireless audio device market study

Page 60

Looking at marketing innovation at SonosNow, their latest product might help them surpass established audio giants.Sonos’ universal music search is intended to act as a grand unifier for the hodgepodge of music services that the average audio consumer already utilizes. Between purchased iTunes music, your favorite Pandora stations, and the other streaming music services – it can be confusing to manage it all. But Sonos has seamlessly connected all of these in their new app.

(continued)

The real genius behind Sonos is having a marketing strategy and product completely in sync. The creative utilizes a minimalist aesthetic that fits the out-of-sight, out-of-mind mentality of the speakers. Their TV spots often feature white, hyper-modern apartments set up with Sonos equipment.

• It made one the first wireless speakers and was able to carve out their own corner of the market.• But more to the point, Sonos has managed to blend technology, hip cachet and giant reach to make the company a household name.• It’s an effort that savvy marketers would be smart to watch closely.

Page 61: Wireless audio device market study