Electric Guitars Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global electric guitars market size was accounted for USD 1.2 billion in 2018 and is anticipated to grow at a CAGR of 3.3% over the forecasted period, from 2019 to 2025. Rising awareness related to music among millennials is expected to drive market growth. In addition, an increasing number of music events and music festivals are expected to propel the electric guitar demand.

In recent years, live concerts and music festivals have been witnessing considerable growth. Moreover, the participation of youngsters is the primary factor to promote musical instruments in music festivals and live concerts. The young population loves to enjoy music on social media. Thus, the above trends are expected to drive market growth.

In 2017, According to the report ‘The Guardian”, the U.K music industry witnessed an increase of 12% audience in live music shows in a year. In addition, a similar post has reported, the number of audiences reached more than 30 million, which has augmented by 2.2 million, in 2015. This music shows added around USD 4 billion to the economy of the country. This trend is expected to spur market growth in the next few years.

Music becomes a necessary part of some schools across the world. The higher and primary schools are concentrating on music education programs. Several kinds of researchers analyzed that young students' engagement in music supports them to improve learning skills, intellectual development, social development, and general activities. National Association for Music Education (NAfME) observed that music aids to develop reasoning and intelligence. Thus, these favorable factors are anticipated to impel the demand for products over the forecast period.

Product Insights

By product, the electric guitar market is fragmented into a solid body, semi-hollow body, and hollow body. The solid-body segment accounted for the largest market of more than 70.0%, in 2018. This product can amplify with a louder tone and they are highly dependent on amplification for robust performance along with greater responsibility.  Key manufactures such as Fender Musical Instrument, Karl Höfner GmbH & Co. KG, Gibson Brands, Inc, Ibanez guitars, Yamaha Corporation are implementing several marketing strategies such as new product development to fulfill the customer’s demand. For example, in 2017, Michael Kelly Guitar Co introduced ultralight guitar with the brand name ‘The 6-Pound Ax’. These guitars are 30% lightweight than conventional electric guitars. It has reduced around six-pound weight without compromising in sonic and styling quality.

Distribution Channel Insights

By distribution channel, the market is fragmented into offline and online channels. The offline channel held the largest market share of over 80.0%, in 2018. The key manufactures are inaugurating new stores in several states to expand their geographical presence. In 2018, Guitar Center renewed the current stores and established seven new stores, which makes around 290 stores in the U.S. market.

On the other hand, the online segment is projected to register the highest CAGR from 2019 to 2025.  Major retailers such as Dave’s Guitar Shop and Guitar Center, Inc. are some of the major independently-owned musical instruments shops in the U.S. and they are coming up with online platforms in order to attract more customers. Further, online platforms such as Google Ads and social media play an important role to increase awareness about new products launches and their advanced features among consumers. Due to online platforms, customers can purchase products from any location across the globe.

Regional Insights

The Asia Pacific accounted for the largest electric guitars market share of over 40.0%, in 2018 due to increasing demand in several countries such as India and China. Furthermore, China organizes international trade fairs intended for musical instruments every year. In 2018, the musical instruments trade fair witnessed over 110,000 people from 80 countries worldwide. This show opens new opportunities to promote musical instruments including an electric guitar.

North America is projected to grow with the highest CAGR of more than 3.5% over the forecast period. Arising number of live concerts along with living music shows are expected to augment the regional market growth. Major manufacturers operating in this market are Yamaha Corporation, Ibanez guitars, Fender Musical Instruments, and Gibson Brands, Inc., and they are announcing new variants to attract new customers and gain maximum market share. In 2019, Gibson Brands, Inc. introduced 25 electric guitars models in a musical show. This product line included ‘G-45 Standard’ and ‘G-45 Studio’, which is expected to surge the market growth during the forecast period.

Impact of COVID-19

The market has witnessed a significant impact due to the COVID-19 pandemic. Demand for music instruments including electric guitars, drums, ukuleles, and others have increased during lockdowns. The number of customers purchasing these instruments, as they seek new hobbies during the coronavirus shutdown. Beginners prefer to buy guitars through online channels. The growth has majorly over-served in countries such as U.K. and U.S.

However, the production of musical instruments slows down due to lockdowns across the globe. Several musical events and live concerts have been postponed or canceled. Moreover, musicians and composers are not able to compose their music at their own studios, which is expected to hamper the market growth to some extent.

Electric Guitar Market Share Insights

The major players included in the market are Fender Musical Instruments, Karl Höfner GmbH & Co. KG, Gibson Brands, Inc., Yamaha Corporation, Cort Guitars Michael Kelly Guitar Co. Epiphone, and Ibanez guitars.

The global market is highly competitive in nature due to the presence of small and large players across the world. The key manufacturers offer technologically advanced electric guitars to fulfill the consumer's demand. EDM Music introduced the ‘Silveray’ brand named electric guitar in the musical show, in 2019. This product offers a single coil for high flexibility and one humbucker for robust performance. In addition, it comes in 5 sound settings. This product was launched to boost their visibility, thereby expected to drive the market growth in the forthcoming years.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global electric guitar market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Solid Body
    • Semi-hollow Body
    • Hollow Body

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Offline
    • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa