3D Audio Market Size, Share & Industry Analysis, By Component (Hardware (Loudspeakers, Headphones, Microphones/Mic, Sound Bars and Others (Power Amp, etc.), Software and Services), By End-use (Residential and Commercial) and Regional Forecast, 2019-2026

The global 3D audio market size stood at USD 3.80 billion in 2018 and is projected to reach USD 12.97 billion by 2026, reflecting a CAGR of 16.9%. Asia Pacific dominated the global market with a share of 32.63% in 2018.

3D audio sound is an acoustic system that is used to provide sound in 3-dimensional space to the users. 3D audio effect is a combination of different sound effects that are produced with the help of 3D stereo speakers, speaker-arrays, surround-sound speakers, or headphones. 3-D audio sound is generated with the help of “head-related transfer functions” (HRTF) technology. 

HRTF technology is a combination of four variables, including three space coordinates (X, Y, and Z) and an altering frequency. Manufacturers in this market are adopting HRTF as well as cross-talk cancellation techniques to develop an advanced 3D audio system. The 3D audio system that is used to record and play the music is undergoing advancement in constant developing flux, intended to enhance the user experience.

3D audio systems are deployed in a wide range of applications, including mobile devices, home theater, gaming, AR/VR based audio systems and others. In addition, industries such as automobiles, media & entertainment, gaming, consumer electronics, and others are adopting 3D audio technology to enhance the sound experience and provide a real-time visualization as well as 3D audio experience to the users. 3D audio-visual (AV) technology is in an emerging stage and the demand for this technology is rising exponentially from cinema and gaming industries. Several 3D audio products such as Ambeo headsets, Hooke verse headphones, 3D audio headphones, head trackers, and others are available for personal or gaming purposes.

Currently, the audio industry is in a re-emerging stage and witnessing substantial technological advancements from various industries. With the introduction of audio-visual technology as well as continuous ongoing developments in the media & entertainment industry is expected to promote the 3D audio market growth. With increasing focus on improving the consumer experience, the 3D audio manufacturers are focusing on integrating sound-mix technology in hardware to offer enhanced music (sound) to a listener in 3D dimensions.

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Issues related to connectivity, installation, and maintenance of audio hardware are estimated to be key restraints for the market. However, these restraints would be eliminated with the advancement of wireless technology. Furthermore, one of the key emerging trends of the 3D audio market is the rising adoption of cloud applications in the music industry. Several organizations are developing 3D audio software and services based on cloud capabilities to offer an easy method to store and play limitless music and movies. This 3D audio software is equipped in various audio applications including 3d audio converter, 3d audio app, 3d audio test equipment, 3d audio headphones and others. Advanced 3D audio software based on cloud platform helps to enhance the customer experience and offers a flexible choice for the users.

MARKET DRIVERS

“Rising Adoption of 3D Sound System across Various Industries Including Gaming Anticipated to Supplement Market Growth”

The growing implementation of 3D audio in numerous applications in the gaming industry is one of the key factors expected to drive the growth of the market during the forecast period. In the current period, the 3D audio system is integrated into a wide range of games and other interactive applications. This integration helps to create a realistic atmosphere over which the user can detect and measure the distance from where the sound is arriving. The 3D audio system is slightly a complex audio system as compared to other audio or environment system for the listener. 

Also, the rapid advancement in virtual reality (VR) and augmented reality (AR) applications across museums and exhibitions are other key factors expected to create opportunities and attract high 3D audio market revenue.

“Evolution in 3D Audio Technologies Including HRTF, Noise Cancellation, and Others to Drive the Market”

The rising adoption of HRTF (head-related transfer function) technology in media and entertainment applications is expected to increase the 3D audio market size during the forecast period. Key companies in this market are focused on integrating HRTF technology into their product to offer immense user experience. HRTF technology is used to create the acoustic sense of virtual surroundings. Also, HRTF is used in various applications including the teleconferencing system, producing more realistic environments, tele-ensemble systems, and sensations. HRTF technology is deployed in predictable applications namely gaming and media & entertainment. Headphone manufacturers are also adopting HRTF technology to provide a 3D acoustic environment to their users. 

For instance, in October 2018, Audeze LLC., manufacturers of planar magnetic headphones, have launched “Mobius.” Mobius is a high-end, fully immersive 3D cinematic audio, and uses HRTF technology in their headphones. These headphones are specially designed for gamers. Moreover, rising consumer awareness about this new technology has further anticipated to contribute in the 3D audio market size.

SEGMENTATION

By Component Analysis

 “Rising Investment by Key Players is Anticipated to Boost the Market Growth”

Based on the component segment, the market is classified into hardware, software, and services. Among these, the hardware segment is expected to hold a dominant 3D audio market share during the forecast period.

Moreover, the hardware segment is sub-divided into loudspeakers, headphones, microphones/mic, sound-bars and others (power amplifier, AC controller, etc.). Under this, the headphones segment is expected to grow at the highest CAGR during the forecast period. This growth is owing to the rising investment for the development of headphones based on 3D capabilities. For instance, in 2018, Dirac Research AB, an audio technology company, strategically made investments to enter into the global gaming industry. The company offers digital sound solutions for applications including home, cinema & theater, automobiles, and consumer durables. Also, the company launched a 3D audio sound for a gaming headset. 

Other players including Dolby Labs, DTS, Inc., Hooke Audio and others, are investing in the development of their product portfolio. Further, the adoption of 3D audio in the gaming industry is rising extensively and key game developing companies are focusing on upgrading their sound engines from 2D to 3D audio.

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Further, the other two segments, namely software and service are expected to grow with a gradual CAGR during the forecast period. This is attributable to the increasing demand for standard and universal 3D sound format from the entertainment industry.

By End-use Analysis

“Rising Popularity of 3D Audio system in Media & Entertainment and Defense Industry to Drive the Market”

Based on end-use, the market is split into commercial and residential segments. The residential segment is estimated to develop with a steady CAGR during the forecast period. Limited availability of headphones, loudspeakers, and other audio devices based on 3D audio capabilities for residential applications will drive the segment’s growth.

Further, 3D audio systems are also used across various commercial applications, including automobiles, cinema, music, gaming, AR/VR, museum, auditoriums, concerts, and others. Growing exploration and development in 3D audio and human-computer interface technology is expected to create prominent opportunities for the market. 3D visual applications and related technologies are robustly adopted by key manufacturers to develop devices, owing to which 3D audio market is gaining traction. Also, 3D audio is widely adopted by the government sector including defense and aerospace. 

For instance, in November 2018, the US Air Force Materiel Command signed an agreement called “Terma”, with the Danish defense contractor. This agreement was completed by the US Air Force to purchase the “Aircraft Audio Management System” (AAMS). Considering such developments, the commercial segment is expected to account for a significant 3D audio market share during the forecast period.

Furthermore, 3D audio technology is widely adopted by the movie industry. Companies such as Dolby Atmos, Aura Technologies, and others are offering 3D audio software for audio-visuals applications for the media and entertainment industry. With the increasing growth of 3D animated movies, a wide range of opportunities are expected to be discovered during the forecast period. Some of the potential opportunities for the 3D audio market include home automation, remote device management, automated driver assistance systems (ADAS), and others. 

Additionally, the upcoming opportunities in the defense sector, as well as the film industry, are expected to supplement the growth of the market during the forecast period.

REGIONAL ANALYSIS

Under the scope of the study, the regional segment is divided into five foremost regions including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Among all the regions, North America is estimated to capture a major market share in the global 3D audio market during the projected period. During 2015 - 2018, North America generated a notable market revenue owing to the strong presence of key players including Comhear, Inc., Dolby Laboratories, DTS, Inc. and others, and their technical expertise research units. The 3D audio system market manufacturers are planning to deploy a 3D audio system globally. 

For instance, during 2017-2018, Dolby Laboratories installed more than 2,000 units of 3D audio systems worldwide. Furthermore, the rising adoption of core communication technologies such as Bluetooth, NFC, Wi-Fi, and ongoing IoT (Internet of Things) technologies helps to connect and control the devices from a far distance.

While Asia Pacific is anticipated to experience the highest CAGR during the forecasted period. The growth in this region is likely to occur due to increasing demand for 3D audio solutions from industries such as media and entertainment, gaming & movie, and others. In addition to this increasing investment by domestic players and venture capitalists in the media and entertainment industry is driving the market in the Asia Pacific.  Such investments have further helped the industry to grow by leaps and bounds. 

Further, the growth of media and entertainment in emerging countries such as India, China and others is expected to drive the market during the forecast period. According to the International Trade Administration (ITA), the Indian market for filmed entertainment is expected to grow from USD 2.11 billion from 2015 to reach a market value of around USD 2.70 billion by the end of 2019.

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Furthermore, according to International trade administration (ITA), in India, the television penetration rate is around 65% and would grow along with AGV (animation, gaming, and VFX – visual effects). This rapid growth in cinema, media, and entertainment industry is anticipated to offer several opportunities for the market in the near future. Also, to fulfill the rising demand for 3D audio devices from various industries, several companies in the APAC region are emphasizing the adoption of core communication technologies to develop advanced 3D audio products. The rising popularity of this market in countries like India, China, Japan and Korea is anticipated to help attract high 3D audio market revenue during the forecast period.

In Europe, the market growth is considerably driven by increasing strategic activities adopted by companies in countries such as Germany, the U.K., Spain, France, Italy, and others. This growth is the result of the rising demand for 3D audio from the filmed entertainment industry. Further, key manufacturers, including Auro Technologies and others in this region, are focusing on catering to the growing demand for a 3D audio system from the cinema industry. For instance, in 2017, Auro Technologies deployed around 600 “AURO 11.1”, 3D audio systems for cinemas worldwide.

These market dynamics would help in backing the development of market growth globally during the forecast period. Additionally, the market in the Middle East & Africa and Latin America is anticipated to grow with a steady CAGR owing to the investments and initiatives done by the government and global players. For instance, the government of Dubai, UAE, invested in developing robust broadcasting and media publishing business. Similarly, the government of Abu Dhabi is investing in the development of the Arabic media and entertainment hub which is also expected to help increase the regional 3D audio market size.

There are various ongoing developments in terms of investment, the partnership between key players, and others. These expansions would help the overall development of the media and entertainment industry and would create several 3D audio market growth opportunities in the forecast period.

KEY INDUSTRY PLAYERS

“Key Players including Dolby Laboratories, Inc., Auro Technologies Inc., and Others to Focuson Expanding their Product Portfolio”

Dolby Laboratories, Inc. a U.S. based company, emerged as one of the prominent players in the 3D audio market. Dolby Laboratories designs and develops audio and imaging products. These products are majorly deployed in applications, including cinema, smartphones, television, broadcast, and entertainment. Under the product portfolio, the company offer products for cinema that include digital cinema servers, cinema audio products (2D and 3D), broadcast tools, Dolby conference phone and other. The company also provides services to support television and theatres production. 

The company offers services including mixing room alignment and equalization, equipment training and maintenance, audio controller, color and light image calibration. Dolby Laboratories develops various audio technologies including advanced audio coding and high efficiency advanced audio coding, Dolby Atmos, Dolby AC-4, Dolby Digital Plus, Dolby Digital, Dolby Vision, Dolby TrueHD, Dolby Voice, and High-Efficiency Video Coding, among others.

The company offers its products and services in more than 80 countries. In 2018, the company invested around USD 365.9 million for the development of audio and visual products and related technologies.

The evolving players, including DTS Inc., Auro Technologies Inc., and others, account for a considerable market share in the market. These companies are estimated to grow and capture substantial opportunities to expand their business process over the forecast period.

LIST OF KEY COMPANIES PROFILED: 

• 3D Sound Labs


• Accent Advanced Systems, SLU.


• Auro Technologies, Inc.


• Comhear, Inc.


• dearVR


• Dolby Laboratories, Inc.


• DTS, Inca


• Dysonics


• Hooke Audio


• ISONO Sound


• OSSIC


• Sennheiser electronic GmbH & Co.

REPORT COVERAGE

An Infographic Representation of 3D Audio Market

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The report presents a comprehensive assessment of the global 3D audio market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• October 2018 – SHIVR launched 3D Wireless Headphones, based on noise-canceling technology. These 3D Wireless Headphones are primarily developed for gaming applications


• January 2018 – AVS 3D Audio Task Group, a China-based company, completed an agreement with Fraunho fer IIS. According to this agreement, AVS 3D Audio Task Group appointed Fraunho fer as the transmission audio codec solution provider for the upcoming 3D Audio standard. This 3D Audio standard will be used in the 4K UHD broadcast.