Audio market enters a new phase as volume growth masks structural pressure, says Futuresource

As the global consumer audio market stabilises, new insights from Futuresource Consulting’s Audio Brand Leader Board point to a category undergoing deep foundational change. Despite signs of outward resilience, contrasting dynamics across price tiers, categories and brands are reshaping the competitive landscape. 

“Growth is becoming more uneven, more complex, and increasingly driven by positioning rather than scale,” says Ramsan Selvaratnam, Market Analyst at Futuresource Consulting. “And it’s a consistent theme across the board. Soundbars, headphones, wireless speakers and AV receivers are all showing signs of inward pressure.” 

Soundbars shift towards mainstream upgrade, as premium segment tightens 

Soundbars remain closely tied to the TV market, with brands such as Hisense and TCL gaining ground through attachment strategies, bundling and aggressive pricing. 

This is having a knock-on effect on category perception. Rather than acting as a gateway to home cinema systems, soundbars are increasingly positioned as a simple upgrade to TV audio, broadening their appeal. 

At the same time, premium brands including Samsung, LG, Sony and Sonos are facing growing volume pressure. In a mature, replacement-driven category, the focus is shifting towards margin protection and differentiation, rather than pure scale. 

Wireless speakers fragment as growth shifts to value tiers 

The wireless speaker market is showing a clear divide between volume-driven growth and structural decline. Brands such as JBL and Anker are outperforming, supported by broad price coverage and strong traction in emerging and price-sensitive markets. 

In contrast, the smart speaker segment is in retreat. Volumes continue to decline as Amazon and Google reduce their investment in hardware-led expansion. This reflects a combination of category maturity, reduced subsidisation and weakening consumer appetite for standalone voice-first devices. 

The implication is clear: the role of hardware in the smart ecosystem is being reassessed, with fewer devices and more selective deployment. 

AV receivers become increasingly niche as substitution accelerates 

The AV receiver market continues to contract, with declining volumes across most major brands. Adoption is constrained by limited new user demand, while simpler soundbar-based solutions continue to absorb entry-level use cases. As a result, the category is becoming more specialised, increasingly centred on enthusiasts. 

Brands such as Denon, Marantz and Yamaha remain dominant, while lower-tier players including Onkyo, Pioneer, Sony and JBL are facing sustained pressure on volumes. 

Headphones remain resilient, but value pressure intensifies 

The global headphones market delivered a broadly flat volume performance in 2025, highlighting underlying resilience. However, value declined modestly as price compression continued across most tiers. 

“The category is becoming increasingly polarised,” says Aishwarya Bhide, Market Analyst at Futuresource Consulting. “Premium brands such as Apple and Sony are shifting priorities. Protecting margins is now trumping growth, reflecting the maturation of replacement cycles at the top end.” 

At the same time, high-volume players are scaling aggressively. Brands such as Xiaomi continue to grow unit volumes while experiencing declining revenues, underlining the strain within the mass market. 

True wireless dominates, but faces continued price pressure 

True wireless remains the core engine of the headphones market, accounting for the majority of both volume and value. Unit shipments grew by 5% in 2025, reinforcing its central role within the category. 

However, value declined by 7% over the same period, as pricing pressure intensified and average selling prices continued to fall. 

Apple remains dominant, despite both volume and value softening in 2025. Sony also experienced notable value decline, even within the premium segment, highlighting broader pricing pressure across the category. 

A market defined by balance, not growth 

According to Bhide, the overarching trend is not one of decline, but of recalibration: “Across the audio market, structural pressures are reshaping how value is created. Scale is no longer enough, nor is premium positioning in isolation.” 

“Success is now defined by a complex balance between pricing, brand identity, distribution strategy and category role within the wider ecosystem,” says Bhide.  

The market is maturing and competition remains fraught. Now, the challenge is for manufacturers and retailers to seek out sustainable value where it still exists. 

Futuresource Consulting’s Audio Brand Leader Board report offers a window into the competitive dynamics of the audio market, highlighting how external pressures are reshaping activity across price tiers, categories and brands.  

To learn more or make an enquiry, please contact Luke at luke.brodin@futuresource-hq.com or visit the report webpage here.