Audio & Video Equipment Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 460 audio and video equipment manufacturers in the US produce electronic audio and video equipment for home entertainment, motor vehicles, and public address and musical instrument amplification. Products include stereo equipment, speaker systems, televisions, household-type video cameras, jukeboxes, microphones, and amplifiers for musical instruments and public address systems. Large firms typically enjoy scale benefits, while small firms compete by offering specialty products.

Inventory Obsolescence

Rapidly evolving technology and fast product development cycles, which characterize the audio and video equipment manufacturing industry, can lead to inventory obsolescence.

Dependence on Foreign Contract Manufacturing

Although US firms play a significant role in the domestic audio and video manufacturing market, foreign production in countries with lower labor costs is the norm.

Industry size & Structure

The average US audio and video equipment manufacturer operates out of a single location, employs about 20 workers, and generates $7 million annually.

    • The US audio and video equipment manufacturing industry consists of about 440 firms that employ about 8,900 workers and generate about $3 billion annually.
    • The industry is concentrated; the top 50 companies account for 78% of industry revenue.
    • Large firms are generally the US subsidiaries of foreign companies, which include Samsung, Sony, and LG Electronics. Multi-national conglomerates dominate the industry. Large US companies include Bose and GoPro.
    • While television manufacturing is included in the industry, foreign-owned firms produce the vast majority of TVs sold in the US. TVs assembled in the US typically use parts from abroad.
                                    Industry Forecast
                                    Audio & Video Equipment Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Feb 22, 2023 - Lower Sales in January for Electronics Retailers
                                    • Sales for electronics and appliance stores fell by 6.5% unadjusted year over year but grew by 3.5% month over month seasonally adjusted in January 2023, according to data released by the National Retail Federation. Overall retail sales were up 6.4% in January 2023 over a year ago and 3% from December 2022, according to the US Census Bureau. NRF’s retail sales calculation, which excludes car dealers, gas stations, and restaurants, showed an increase of 4.8% unadjusted year over year and 1.5% month over month in January 2023. According to NRF Chief Economist Jack Kleinhenz, “Consumer spending clearly picked up after the holidays. Sales were helped along by job and wage growth, slightly lower inflation and unusually warm and dry weather that preceded February’s record cold. A large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic.”
                                    • Consumer confidence levels declined in January 2023, following an increase in December 2022, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 107.1 in January 2023 from 109 in December 2022. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumer confidence declined in January, but it remains above the level seen last July, lowest in 2022. Consumer confidence fell the most for households earning less than $15,000 and for households aged under 35.” While plans to purchase homes have cooled, plans to buy cars and appliances have held steady, per Ozyildirim.
                                    • The Pro AV Business Sales Index hit a 63.5 average in 2022, its highest average year since 2018, according to the Audiovisual and Integrated Experience Association (AVIXA). The index is derived from a monthly survey of the AVIXA Insights Community comprised of industry members. Pro AV industry sales in December 2022 averaged around 61.2, an increase from November’s index of 57. An index of 50 indicates firms saw no growth or decline in business activity; more than 50 indicates an increase, while less than 50 indicates a decrease, according to AVIXA.
                                    • US consumer technology industry sales revenue in 2022 is expected to fall 8% year over year, following two years of strong growth during the pandemic, according to the “Future of Technology” forecast by the NDP Group. The forecast projects that sales will drop by an additional 5% year over year in 2023 and remain flat in 2024. Sales are expected to rise again in 2025 when consumers begin to replace devices purchased during the pandemic. NPD expects solid unit sales of TVs during the forecast period, with demand driven by an accelerating shift to larger sizes and lower prices. Home automation product sales are also expected to perform well, with new models coming to market.
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