Global internet radio and CHAD market to exceed $1 billion in 2011
The report found that total unit sales of global connected in-home audio device grew by 57 percent to 3.3 million in 2010, driven by better value proposition of new products. Examples of connected home audio and internet radio devices include the Sensia audio system from Pure and the Sonos S5 Player from Sonos.
The active installed base of home internet radio devices reached 7.4 million units globally in 2010. Consumers will continue to purchase connected home audio devices in the coming years, and the total active installed base is expected to exceed 40 million units by 2015.
Jia Wu, senior analyst of connected home devices at Strategy Analytics, said: â€œWhile we now have plenty of electronic devices that can play music files and stream Internet audio content, a dedicated and easy-to-use Internet audio device still has its room in the home.
â€œIt is a niche market, but being equipped with touch screens and Internet capability, the new generation home audio devices appeal to a decent amount of consumers that love Internet radio programs and streaming music content.â€
Based on Strategy Analyticsâ€™ recent consumer survey, the report also found that the user demographics of current CHAD owners are skewed toward young and male user groups.
Peter King, director at Strategy Analytics, said: â€œIt is not going to be a mainstream product category given the current price point of CHAD. But we expect to see price cut going forward due to competition, which can provide more steam to the growth of the product category.â€
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