The Canadian home audio market continues to face challenging conditions, with current value sales falling for the sixth consecutive year and volume sales down by the second consecutive year in 2013.
The sector has been dragged down by the weakness in home cinema and speaker systems, which declined by 10% in current value in 2012 and by 9% in 2013.
Volume sales in this category fell by 3% in 2012 and by another 5% in 2013. Overall, the home audio and cinema market experienced a -9% volume CAGR and -10% current value CAGR over the past five years.
Volume sales declines are lower than value sales, which means that this category saw strong promotion and price decreases as manufacturers and retailers attempted to improve volume sales. However, the product area is also reaching saturation.
Sony of Canada, Panasonic Canada and Samsung Electronics Canada continued to lead the Canadian home audio and cinema market in 2012, accounting for 50% of retail volume sales. Sony of Canada holds the first place with a 32% volume share followed by Panasonic Canada with 11% and Samsung Electronics Canada with 7%.
The Canadian home audio and cinema market is expected to register a relatively poor performance over the next five years, with the sector expected to continue to see decline at a volume and value CAGR of -7%.
These products face increasing competition from other consumer electronics that offer high definition video and sound quality and are also portable.
The growing penetration of the internet in households will also be unfavourable to the development of this category, as music and video are increasingly accessible via the web, thus stimulating consumption of such online content.
Furthermore, as consumers increasingly turn to computers and other portable devices for their leisure time, smaller and portable audio devices may be the preferred method of consumption.
For more information on the Canadian home audio market, see the latest research: Canadian Home Audio Market
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