Home Cinema/Home Theatre market is one of the fastest growing segments and sectors both from global and local perspective. The global size of the industry is expected to be close to $28 billion by the end of 2023. The growth rate of the sector is close to 8.5% which is substantial given the huge size of the industry. In context of India, the total revenue of the industry was close to $477 million in the year 2021. On the other hand, the revenue growth and the industrial expansion would be at 15.05% which is almost twice of what the international market is going to witness in the next few years, thereby making India one of the hottest markets in the world.

There are a number of factors which would decide the overall trends of the market in the future. First, the impact of Covid-19 should be undertaken in respect to the futuristic trends. It is clear that the theatres and amusement facilities are the worst-affected due to the pandemic. In context of India, the country is witnessing a second wave of Covid-19 which further implies that the reopening plans of the theatres would be further jeopardized. This means that the growth trends in India could be even more as the home cinema systems would be the only alternative that could effectively replace the movie-watching experience. Covid-19 has also resulted in creating a sense of fear in stepping out, especially in the crowded areas. This is the reason why the trends would be largely in favour of the growth of the industry as even the middle class would contemplate purchasing the systems.

However, one of the key determinants of the growth of the industry is the disposable income of the individuals in a region. Due to Covid-19, it is presumed that the total expected disposable income would be reduced and the growth rates could be affected negatively as well. However, it only depends on how quickly the economy is going to resume and the growth trends are back. Hence, the overall perspective towards the future trends in India is largely positive. Another important trend which would influence the trends in the future would be the increase in smart homes and technologies. The lockdown-based restrictions have resulted in increasing popularity of AI devices such as Amazon Alexa and Google Assistant. Smart homes take account of devices and technology that has the ability to enhance overall user experience. Home theatre systems are the part of different smart mechanisms connected in the house ecosystem.

Improvements in fast speed internet and rapid increase in demand would mean that the number of competitors in the market is expected to increase in the future. Currently, there are a few companies which are dependent on the Chinese supply chains for supplying the projectors, sound system and other devices in the Indian market. However, with more indigenous and global brands noticing the consistent growth in the Indian market, the overall size of the market is expected to expand even further in the future. The pandemic has both positive and negative influence on the future of the industry.

One of the biggest issues in the Indian market could be the limited choices available for the home theatre systems and the overall perception of the consumers due to the previous trends. The consumers often think that the home theatre systems are still expensive and require a lot of space for setting up such systems. However, there has been a consistent change in the products and services offered by the company but with limited marketing. The home theatre systems and components are still not well-marketed as televisions and other household electronic goods. In order to ensure that the overall demand for the products would increase, the companies would have to reach the customers.

Currently, it is the customers who are researching and carrying out assessments about the costs and feasibility of such systems. If the companies really look forward to a change in the growth trends, this should be the first step followed by improving the supply and distribution chains in India.