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        Audio & Video Equipment Manufacturing Industry Profile

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        Excerpt from Audio & Video Equipment Manufacturing Industry Profile

        Companies in this industry manufactures audio and video equipment such as televisions, stereos, speakers, video players, and camcorders. Major companies include Bose (US), LG Electronics and Samsung (South Korea); and Panasonic, Pioneer, and Sony (Japan); and Philips (Netherlands).

        Countries in Asia dominate the audio and video equipment manufacturing industry. Top producers include China, Japan, Malaysia, Thailand, South Korea, and Taiwan.

        The US audio and video equipment manufacturing industry includes about 500 establishments (single-location companies and units of multi-location companies) with annual revenue of about $3 billion.

        Competing products such as PCs and tablets, game consoles, and smartphones are covered in profiles of the Computer Manufacturing, Electronic Toys & Games Manufacturing, and Wireless Telecommunications Equipment Manufacturing industries, respectively.

        COMPETITIVE LANDSCAPE

        Demand is driven by consumer income and the rate of product innovation. The profitability of individual companies depends on manufacturing efficiency and effective marketing and distribution. Large companies have advantages in economies of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialty products or components in system solutions, such as speakers in a home theater system. The US industry is highly concentrated: the 50 largest companies account for about 80% of revenue.

        Audio and video equipment competes with PCs, tablets, smartphones, and game consoles in the consumer home entertainment market. US manufacturers of audio and video equipment face significant competition from imports, particularly from China, Mexico, and Japan.

         
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