In our latest interview for The Starscream Sessions series, Sean Hannam talk to Guy Hammett, head of audio at tech analysis and market research company, Futuresource Consulting, to get his insights into the state of the audio market, retail and consumer trends and where the sector’s heading.
Thanks to other members of the Futuresource team: Rasika D’Souza, principal analyst – consumer electronics; James Duvall, head of entertainment, and Tom Bartlett, insights analyst, for their additional information.
How is the UK consumer audio market performing? Who are the winners and losers when it comes to product sectors, and why?
The audio market in the UK is relatively mature, driven by upgrades. Within personal audio, open-ear devices, as a newer form-factor in headphones, are gaining more traction – there’s 30% year-on-year growth expected in 2026 – as consumers opt for these as a second pair for certain use cases.
Whilst wireless is front and centre, in certain entry price-points, wired in-ear models are seeing pockets of growth.
Generally, the headphones industry is transitioning towards personalising the user experience, with heavy emphasis on creating hearing profiles and in some cases, integrating hearing health features.
In the home, the party speaker market is expected to continue to expand beyond traditional party environments. Increasingly, consumers are incorporating party speakers into a variety of everyday settings, including gyms, shopping centres, and educational institutions.
Other segments in home audio are saturated with consumers holding onto devices for longer. The UK soundbar market is primarily driven by upgrade cycles. However, within this landscape, the £1,000+ price segment stands out, growing at around 8% year-on-year in 2025.
This trend indicates that a subset of consumers, particularly audiophiles, are willing to invest more in high-quality soundbars that deliver superior audio performance and premium features. Brands are focusing on audio quality and trying to improve the sound of the speaker.
What are some of the emerging trends you’re seeing in consumer audio tech?
The rise of mass premium – this is not specific to the UK, but there is a growing demand for mass-premium audio. The global consumer audio market for products priced $200+ generated revenues worth approximately $40bn.
In home audio, the $200+ market has grown a lot in recent years with the rise of party speakers, but the share between wireless speakers, soundbars and loudspeakers is much more equal here.
What about spatial audio devices?
Spatial audio technology is coming down in price – there are even some soundbars with Atmos at around $150 now. Around a quarter of over-ear and True Wireless Stereo (TWS) headphones sold will feature spatial audio, with gaming headsets at just over 20%. There’s consistent growth expected.
How is AI being incorporated into audio products?
AI integration is more common now with audio hardware, typically to improve the overall listening experience. There’s more emphasis on personalising the user experience and AI is well-poised to do this through apps/software.
How are turntables performing? Have sales levelled off, or are you still seeing a rise?
Turntable sales are still strong, growing consistently over recent years, albeit at a lower level than previously. However, the elevated sales seen in this market are expected to remain stable or grow slightly in the coming years.
Growth is primarily driven by younger consumers either buying their first turntable, often after buying a few vinyl records first, or increasingly being driven by consumers who bought their first turntable during the COVID boom upgrading from a £150-200 product to a £300 product.
Many modern artists are favouring vinyl releases, and this is resonating with younger fans. Additionally, turntable manufacturers have done a good job adapting the products to the needs of modern consumers.
In the entry level of the market, products with built-in speakers are very popular. While the quality may not be the best, the convenience and ease of use more than makes up for this among first time buyers who aren’t used to component hi-fi systems. Moreover, Bluetooth connectivity is almost standard among turntables these days, with wi-fi connectivity also growing quickly.
What does the market look like for traditional hi-fi sales?
Traditional hi-fi continues to become increasingly niche, although those still involved in this market are often willing to spend significant sums on their systems.
Millennial consumers show no sign of a mass move towards hi-fi components, preferring instead the convenience of modern solutions.
Products that are performing better in this market are those that mix the tradition and heritage of hi-fi audio with modern features, such as music streaming.
Active loudspeakers continue to significantly outperform passive loudspeakers, while premium all in one wireless speakers and soundbars from the likes of Cambridge Audio, Marantz and KEF offer an intriguing insight into the future of high-end audio.
How are consumers shopping for audio products? Where does their purchasing journey begin?
New audio product purchases are triggered by a variety of different reasons, often depending on product type; for example, research shows that a better music listening experience ranked as the top driver for new soundbar purchases (27%).
Consumers typically begin their audio shopping journey by leaning on trusted sources, with word of mouth, online reviews, and retailer/manufacturer websites consistently guiding early product discovery.
In-store demonstrations remain highly influential, with about 50% of shoppers trying products before they buy and most ultimately purchasing from the same retailer.
This aligns with the fact that many consumers (75%) already have preferred retailers in mind; trust and familiarity strongly shape both where they research and where they buy.
What’s the split between online and bricks-and-mortar stores when it comes to audio? Where are consumers buying their audio products?
Online remains the dominant channel for audio purchases, making up 75% of headphones purchases and 66% of soundbar purchases.
This preference is particularly strong among younger consumers and, while online is still the overall preference, bricks-and-mortar stores are more widely purchased from by older groups.
Physical stores continue to play a vital supporting role, particularly because many online shoppers (almost 6 in 10) still visit a store first to see or test products.
Ultimately, consumers choose online for convenience, deals, and variety, while in‑store purchases are driven by the ability to experience products firsthand and the enjoyment of browsing in person.
What does the future look like for audio retail specialists, such as hi-fi stores? How can they attract new, younger customers?
Rather than focusing on a love of hi-fi itself – the things which are popular with traditional audiophiles, such as complicated technical specifications and obsessing over every stage of the audio signal – the focus needs to shift to music itself.
The advent of music streaming has seen younger consumers listening to more music more regularly than any previous generations.
Spend on music experiences such as content is remarkably strong, even though spend on audio hardware lags.
Seeing these consumers as “music enthusiasts” rather than hi-fi enthusiasts, and curating spaces, experiences and language, accordingly, can help bridge this gap.
How do you see the audio sector performing over the next few years and what new audio tech is on the horizon?
In terms of volumes, the UK market is likely to be relatively flat in the longer term, although consumers are willing to spend more on their products.
There are pockets of innovation in the audio industry – nothing as revolutionary as the introduction of Bluetooth speakers or TWS, but a constant evolution in improving hardware, features and sound quality.
Smart glasses are the new big trend, with shipments globally expected to reach nearly 10m units this year.
Futuresource expects that these devices, with their hands-free usability, will fit into the audio ecosystem as another device that offers on-the-go convenience for listening to music, perhaps eventually viewing content when AR functionality grows in the wider eyewear ecosystem.
The industry is also now witnessing early discussions around earbuds/ TWS with built-in cameras.
Apple is reported to being releasing new AirPods with cameras, to enable contextual awareness – a concept similar to audible AR, which can be enabled through seamless voice-based conversations with assistants in the earbuds.
There will also be more emphasis on hearing health, seeing more integration of features such as speech clarity boost, adaptive Active Noise Cancellation (ANC) and situational hearing support from brands.
The home audio market is expected to grow largely through replacement purchases and the introduction of new premium features. If consumers perceive clear value in these enhancements, adoption is likely to increase.
Manufacturers are also working to enhance connectivity and room-wide audio distribution to deliver a more immersive listening experience.
Looking ahead, we can expect a wider range of product types to interconnect seamlessly, allowing the audio experience within the room to become richer.
Can you tell us about the next Futuresource Audio Collaborative event? What have you got planned for this year?
We’re bringing Audio Collaborative back to London on Wednesday 11 November 2026, at the Ham Yard Hotel.
It’s a one‑day event where we bring together senior voices from across the audio industry for open, informed conversations about where the market is heading.
The emphasis is very much on insight and debate rather than product pitches, using Futuresource research to set the scene, then pressure‑testing what it really means for strategy, investment and growth.
The day blends market intelligence, panel discussions and high‑level networking, all in a closed‑door setting, designed to encourage frank discussion. We are curating the speakers for the panels at the moment and there are some great opportunities for sponsorship.
For more information on Audio Collaborative, click here.
If you would like to register your interest, please click here.
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