A new report into the global electric guitar market says revenues will grow at an annual rate of 3.44 per cent over the next four years.
The report, from Technavio, which you can order here, says the global market will reach $1.75bn by 2020, with the US market grabbing just over 67 per cent of the share. A 2015 valuation puts the market at $1.48bn.
In terms of units, worldwide, some 1.39 million electric guitars were shipped in 2015, a number which is projected to increase at an annual rate of 5.15 per cent to reach 1.79 million units in 2020.
American domination is under threat from the Asia-Pacific region, however. In 2015, the Americas dominated the global market with a share of 76.98 per cent. As the market is nearing saturation, the share of this region is expected to decline during the forecast period.
Europe and the Middle East followed with a market share of 14.39 per cent in 2015. As the region (particularly the Eurozone area) is still recovering from recession, the population is reluctant to spend on leisure amenities. As many of the leading vendors in the market are US-based, this also increases the revenue outflow of the region in importing electric guitars from other countries.
Still, the share of EMEA is expected to increase during the forecast period due to market stagnancy in the Americas.
APAC accounted for an 8.63% share of the overall market in 2015. Its share is expected to increase due to the rising number of live events and concerts in the region, which is consequently boosting the popularity of watching and playing music.
Certain major players in the US have followed an acquisition strategy with respect to smaller players to attain larger market shares. However, the market is expected to witness steady growth during the forecast period, as vendors are using multiple marketing and promotional strategies such as price breaks, online sales, and endorsements by famous musicians, artists, and bands.
