The Guitar Market: Is 2024 The Best Year to Become a Luthier?

The Guitar Market: Is 2024 The Best Year to Become a Luthier?

The guitar market is a growing ecosystem of brands that fight for the pole position. That healthy competition added to a surge in guitar-driven music has turned a fast-growing industry into a huge opportunity to thrive in today’s economy.

Yes, the guitar is living its second spring because sales after COVID can only be compared to the sales generated by Beatlemania; half a century ago.

But why is this so important? Well, there has never been a better time to pick up a guitar or a chisel. Yes, opportunities in the guitar market are many and very attractive. Becoming a luthier in 2024 could be the pivotal change you were expecting.

In this article, you’ll learn about:

• The Guitar Market Today
• General Market Statistics
• Market Drivers
• Market Challenges
• Key Players and Best-Sellers
• Why is 2024 the Best Year to Become a Luthier

The Guitar Market Today

Before starting with the analysis, let’s clear the hard data out of the way. These are just cold numbers, but they will give us a lot of info about the market once we analyze them.

General Market Statistics

• The global guitar market generated 10.3 billion Dollars in revenue in 2022.
• The electric guitar market generated 4.49 billion Dollars in revenue in 2022.
• 60% of the global revenue comes from acoustic guitars (combining acoustic and classic guitars) and 40% comes from electric guitars.
• Online sales represent 35% of the total guitar sales in the world while 65% comes from offline stores.
• Close to 2.7 million guitars were sold in the USA only in 2020.
• Fender is the biggest guitar manufacturer in the world, making close to half a million guitars a year.
• Fender is also the biggest global market share holder with 25% of it.
• Gibson accounts for 20% of the global guitar market share.
• 17 million people took up guitar between 2020 and 2022 in the USA only.
• The Asia Pacific market held the largest revenue in 2022 with approximately 35% of the global total.
• According to Reverb, the overall best-selling electric guitars in 2023 were the PRS Silver Sky SE, the Fender Player Stratocaster, and the Fender Player Telecaster.

Forecasted Growth

The global guitar market is expected to have a compound annual growth rate (CAGR) of 7.7% between 2023 and 2030.

The global electric guitar market is expected to have a CAGR of 6.8% between 2023 and 2030.

Statistics Analysis

Now that the cold numbers are down, it’s time to question them and find out what they mean in real life.

To begin with, the size of the global guitar market today is at an all-time high, and it’s only forecasted to keep growing. This is due to a surge in the demand for the instrument. Yes, in recent years millions of people decided to take up guitar playing generating orders beyond imagination. Andy Mooney, Fender’s CEO told Forbes that the company grew mid-30% a year during the pandemic.

The company’s growth numbers were historically a single digit, and demand was around $400 million. After the pandemic, demand touched the $1 billion mark.

Although a year later, that demand slowed a bit while restrictions were lifted and people went back to spend their money traveling and eating out, the guitar industry came out of the pandemic way more powerful than it was before.

According to Matt Janopaul, Fender’s CFO, the company had canceled orders for up to $100 million in 2023. That’s approximately 600,000 guitars and 200,000 amps.

Doing a simple math operation, the company sold $400 before the pandemic and close to a billion after the pandemic. If we subtract these $100 million, we’re left with close to $900 million. That’s more than twice the number before the pandemic.

65% of the guitars being sold are sold in brick-and-mortar stores but 35% of them are sold online. This indicates that although the trend of buying online is on the rise, guitars remain touch-worthy instruments that you need to feel and listen to before buying.

Brands like Fender and Gibson don’t need much testing or feeling if you know what you want and like. Therefore, it’s the type of guitar that could fall into that 35% being sold online.

Speaking of Gibson and Fender, they continue to be the biggest brands in the guitar industry with 20 and 25% of the market share respectively.

Debunking North America, the Asia Pacific region became the biggest guitar market in the world. Because of its different characteristics and idiosyncratic qualities, this could mean fertile ground to grow for new brands and modern takes on classic shapes.

A good example is the fact that the PRS Silver Sky SE outran Fender’s Player series as the best-selling guitar in 2023. It means that people gravitated toward an Asian-made, new iteration rather than the original classic made in Mexico, 300km away from the Corona California factory.

It might also mean that consumers want the Strat sound, only a little modernized.

Finally, according to the growth forecast, and despite the peak of the pandemic and post-pandemic sales having flattened, the future looks bright and profitable for the guitar industry.

It’s a great moment to participate in the market and take advantage of this prosperous momentum.

Guitar Market Drivers

What drives the guitar market forward?

For starters, the pandemic accelerated the growth of online classes and learning platforms. Fender Play subscribers went from 150,000 to 1 million in less than one year.

Many of the 20 million people who recently picked up a guitar found a way to be proficient in the instrument from the comfort of their houses.

Likewise, guitar influencers and social media players have multiplied in the past few years. This means there’s a big audience out there looking for guitar-related content online, helping guitar sales.

Another big market driver for the guitar segment is the rise of festivals and shows all over the world. The resurgence of guitar in mainstream music, the return of classic bands to the road, and the prevalence of genres like metal, punk, rock, hard-core, soul, funk, and their derivates brought guitar playing back to the forefront of the stage again.

Seeing guitar players on marquees and screens around the world is a huge publicity push for guitars globally.

Also, the proliferation of accessible, easy-to-use recording equipment has made it very easy to make music from the comfort of your home. Together with the huge innovations in terms of impulse-response equipment, arena-worthy tones became easy to recreate in a small apartment.

Finally, the rise in online sales has also driven the guitar market forward. Players and soon-to-be players can use the internet to get an idea about how the guitar sounds, read some reviews, and make an informed decision about the instrument even without playing it.

Plus, the push the pandemic gave the mail system has made shipping and handling easier and more secure than ever before.

Guitar Market Challenges

Although the drivers of the guitar market are plentiful and very important, the guitar market also faces some challenges that threaten to break its momentum.

The first item we need to talk about is the long replacement cycle that guitars follow. Yes, depending on the amount of time spent playing it, the musical style, and the quality of the instrument, some guitars are kept for a lifetime. This is a drawback for an industry that grows continuously offering more guitar models and innovations.

In this sense, the reliability and durability of an instrument are a big part of why a player (or soon-to-be player) might decide to purchase one guitar over another model. This can be clearly seen in the top three models Reverb sold the most in 2023; the three are road-worthy, mid-priced instruments.

Another big challenge the guitar industry is facing is the sourcing of the tone wood that has been used historically to build these instruments. Since the CITES treaty and the protection issued over important tone woods for guitar production such as rosewood or mahogany, companies were forced to look for alternatives. These new tone wood species have yet to earn broad public recognition for their timbre and durability.
Because of the scarce supply and the surging demand, the price of traditional tone wood has gone up.

Also, although we mentioned it as one of the market drivers, the increasing use of music production software including galleries of prerecorded sounds and AI-powered music-making software has marginally replaced players with technology. In this sense, modern music producers might opt for a pre-recorded guitar sound rather than having an actual player perform.

Finally, the entire supply chain was affected by the pandemic and has not yet been normalized. Therefore, besides tone woods and exotic woods, the guitar industry is struggling to find supply for accessories, pickups, and electronics as well.

Key Players & Best-Sellers

The biggest names in guitar history are still the ones driving sales around the world. The most modern addition to that list is PRS, which together with Ibanez, ESP, and a few other Asian-born companies take up the rest of the top 10.

The biggest two brands gave a significant push to their mid-tier guitars. This is particularly noticeable with the announcement and release of the Custom Shop Epiphone line. These guitars are either recreations of timeless classics like Kirk Hammett’s “Greeny” or guitars not available in the Gibson range.

These guitars, made in Asia, replace the stripped-down versions the brand has released historically under the names of Studio, Faded, and such. You can now buy an Epiphone with the typical book headstock and the same value you’d get from a USA-made instrument as the Studio was (above the $1000 mark).

A similar approach was the one adopted by PRS. Their SE models, made in Asia, top the Reverb selling list. You can get a full-blown Silver Sky from Reverb as well, but as bang for the buck, the Epiphone Custom Shop and PRS SE are very hard to beat.

Both companies, PRS and Gibson/Epiphone preserve their core line to showcase what makes them the brands they are in the guitar industry today. That said, the core line for both companies are well above the $3,000 mark. Considering that 60% of the guitars sold in 2020 were less than $500, and only 10% were above the $1,000- mark, these guitars are too expensive for a broad portion of the market.

But it’s even more revealing taking into consideration the place Gibson guitars occupy in the Reverb best-selling ranking for 2023.

The Gibson Les Paul Standard occupies the 5th and 6th place in the overall chart (‘60s and ‘50s neck respectively). On the brand-new guitar sales ranking they go down to the 8th and 9th places. But when you scroll down to the used guitar ranking, the Gibson Les Paul Standard ‘60s leads the poll.

This might mean people love the sound, performance, and feel of the real Gibson but are considered too expensive. Likewise, the PRS core collection doesn’t appear in any of the three rankings mentioned above, just the made-in-USA version of the Silver Sky.

Fender, on the other hand, has invested strongly to improve their Player Series, the standard line made in Ensenada, Mexico. Those guitars are top 10 in all three rankings, second in the overall.

But what other conclusions can we draw from this data? Well, the Asian market is growing but is also perfecting production techniques and coming closer to the product made in the parent company facilities. Likewise, brands like ESP and Ibanez are expanding and captivating other markets outside of metal and rock music.

The AZ and Q lines by Ibanez and the EC, TL, and TE series by ESP are great examples of this as well as the Revstar by Yamaha.

Why is 2024 The Best Year to Become a Luthier?

The guitar industry, as the numbers above indicate, is soaring. It might have hit a plateau as we speak, but it’s still a much higher plateau than what it was before the pandemic.

For the players, there has never been a better time to pick up the guitar. The combination of the myriad of options to learn online, the ability to play with friends without leaving your house rocking silently with arena-ready tones, and the option to get a good instrument at a good price makes this a golden age for guitar players.

Well, speaking of guitar players, they are multiplying around the globe. Emerging economies as well as Western countries have registered records in sales and growth. China’s CAGR is 5% from 2021 to 2028.

Furthermore, Music China and the rest of the musical instrument fairs taking place in that country put the country on the guitar map and make attendance a must for the biggest companies in the world.

Also, since most major brands have outsourced their production to China for brands like Epiphone and Squier decades ago, the craftsmanship and quality of the instruments coming out of Chinese facilities is higher now than it was before.

This is feeding a growing market that has no ceiling in sight.

Those new players and growing markets need new quality instruments. Moreover, since the average lifespan of a guitar is 30 years, the average number of guitars a player owns is 3.5, and 25% of guitar players replace their main instrument within 5 years, there’ll be a lot of building, maintenance, and customization work in the music industry in coming years.

So, that’s briefly (very briefly) why 2024 is the perfect year to fulfill that dream and finally chisel life away. Now, let’s address some of these matters deeper.

Guitar Customization

Let’s begin with guitar customizations. This is one of the main tasks that luthiers perform on their desks. This can be something as simple as changing the tuners or it can be something as complex as installing a tremolo system on a hardtail guitar.

But why is this a time for guitar customization more than others in history? Well, the guitar accessories market was valued at $1.5 billion in 2020 and is always growing. Indeed, besides traditional accessories brands such as Sperzel or Seymour Duncan, a plethora of road-worthy, well-designed, and flawlessly made accessories have flooded the market.

Perhaps, the most iconic case is that of the Mastery Bridge. This replacement bridge, ideal for offset guitars is so good that Fender added it as an option for Custom Shop instruments.

Although one of the main challenges luthiers face in this age is the ability to access tutorials on YouTube and try to work on your ax in a DIY fashion, when guitars are on the pricier side, most players prefer a qualified technician, AKA, you.

Players in the Spotify-Era Need More Versatility

How did Spotify impact the guitar market? Well, since there’s unlimited access to music and artists (you don’t need to be friends with the guy who owns the record to hear it) there’s a growing number of artists blending music from different genres to create new ones.

These daring artists need innovative instruments to play their music.

What does this mean for a luthier? Well, when players blend styles, they need instruments that can be more flexible and cover more sonic ground. In other words, guitars that can sound like more than one instrument and that can be manipulated from the controls on board. So, instruments with added P-90s, humbuckers, single-coils, or with coil-tapping, onboard split switches are becoming more popular.

Tailoring an instrument to address all the player’s needs might become one of your main sources of income as a luthier, and might open up new ways toward innovative designs.

For example, those who love playing neo-soul, funk, electronic, and pop might want a Stratocaster to have that glass-like clean but might want to rock out on the chorus. Well, the possibility of adding an aftermarket humbucker to the bridge position and a split switch can transform the customer’s guitar into a much more versatile and modern-sounding instrument.

Besides, once a customer comes in for customization, it can be a regular repair and maintenance customer too. That market (repair and maintenance) was valued at $200 million in 2020. Moreover, 50% of the players upgrade accessories on their guitars annually.

2024 looks bright for luthiers and soon-to-be luthiers around the world with work opportunities opening up in the upcoming years.

Unlimited Access to Data

The number of luthiers, technicians, and players who share their knowledge for free on YouTube and other platforms was unthinkable a few decades ago. The democratization of the access to information has paved the way for luthiers to go DIY into techniques they want to perfect, learn best practices, or simply learn how to perform a certain task in the shop.

So, education, something that used to be a big onus on the back of starting luthiers has changed dramatically and is now an information freeway where you can find most blueprints for guitars from any brand.

Furthermore, the number of specialized forums where you can take the discussion into very personalized territory and get most of the information you need is virtually endless.

Since access to data is easier and broader than ever, becoming a luthier and/or perfecting your skills as one is easier than ever.

Free Resources and Useful Links

These are some free resources and links you might find useful in your path to becoming the next Paul Reed Smith.

  • https://www.guyker.com/blogs/guides/the-ultimate-guide-to-building-your-dream-guitar
  • https://www.guyker.com/blogs/guides/how-does-an-electric-guitar-work
  • https://www.guyker.com/blogs/guides/guitar-soldering-tips
  • https://www.guyker.com/blogs/guides/how-to-paint-a-guitar-body
  • https://www.guyker.com/blogs/guides/best-online-resources-for-luthiers
  • https://www.guyker.com/blogs/guides/electric-guitar-pickups-101-the-basics
  • https://www.guyker.com/blogs/guides/a-beginners-guide-to-luthier-tools
  • https://www.guyker.com/blogs/guides/everything-about-pots-and-caps
  • https://www.guyker.com/blogs/guides/truss-rod-adjust-guitar-neck
  • https://www.guyker.com/blogs/guides/types-of-wood-for-electric-guitar

Online Presence and Market

The boutique and independent brands have flourished in the past years.

On one hand, the gatekeepers to mainstream exposure like magazines and broadcasters are no longer in place. The possibility of forging a straight-to-the-customer relationship between small, boutique, starting brands and luthiers and the consumer is closer than ever.

Moreover, since you can pour more of the journey and the philosophy behind the instruments online you can possibly find an audience that identifies with your motto or journey and consider ordering an instrument.

Building a brand identity used to cost thousands of dollars in advertising in the biggest magazines and shows in the world. Although gaining leverage and notoriety online isn’t an overnight phenomenon either, you can assemble a small team to polish the aesthetics and compete with the big names in reaching a global audience.

Furthermore, with the ability to fine-tune your advertising efforts, you can easily identify and grow your audience, investing more efficiently, and generating a bigger ROI.

Finally, 65% of guitar sales are still being made face to face because customers prefer to try and test how a guitar feels rather than buying by specs. So, it’s a great moment to attract people online to actually play and fall in love with your instruments.

Social Media, Advertising & Beyond, The Paul Reed Smith Strategy Today

Perhaps, a good example to demonstrate the last point and this one is that the PRS Silver Sky SE maintained the pole position over the Fender Player Stratocaster in sales Reverb’s 2023 sales ranking. The Silver Sky SE is a modernized version of the Stratocaster by a very prestigious brand synonym with excellence, obsession over details, and craftsmanship at a very convenient price.

It’s sleek and represents the future of guitar-driven music but it’s essentially a Stratocaster. It doesn’t feature any significant difference with Fender’s model besides the pickups.

But here’s the catch, the person Paul Reed Smith developed this guitar with is the heir of a tradition of blues guitarists who know more than any other living being about Stratocasters. If there’s a qualified voice and a discerning ear when it comes to Stratocasters, that’s John Mayer.

Moreover, the Silver Sky doesn’t have the appointments of a traditional PRS. It’s a leap of faith for the company, one of the many it has given in its existence.

The result is debunking Fender from the first place as the best-seller of its most famous model. This might be because of the influence the player had on the buyers. If it’s good for John Mayer, it must surely be good for us.

In 2024, reaching out to artists and building bonds is easier than ever. Social media has been the perfect vessel for communication and joint efforts. You can now reach artists with your products and build leverage by endorsing artists easier than ever.

Finally, in case you didn’t know, that’s how PRS’s story started. Paul approached guitar players, the best at the time, when in concert and gave them his guitars to try out. He trusted his product blindly and convinced some of the biggest names to play his guitars on stage and in the studio.

Perhaps, the most iconic case is Carlos Santana who Paul approached cold with a guitar and ended up having a decades-long relationship of exclusivity. Carlos has an impressive guitar collection but none play like his PRSs.

Become a luthier, work on your skills, and work hard on a groundbreaking model that’s going to marvel players. This is the right time to start pursuing that dream.

Final Thoughts

The guitar market is on the rise, The key drivers are acting full steam moving an innovative, bold, fast-paced industry forward.

This turmoil is the perfect fertile ground to grow as a luthier, an independent brand, and a guitar builder. This is because consumers and companies are demanding more flexible, modern, and road-ready instruments to make music. Guitars need to cover more sonic ground than before because music has flexibility and broadened its horizons more than ever thanks to Spotify.

Although there are challenges like the increasing use of AI for music production as well as restrictions on tone wood and a broken supply chain for hardware and electronics, the guitar industry has a bright future ahead.

Happy guitar building!

Sources:

  • https://www.musicradar.com/news/fender-100-million-dollars-sales-cancelled-post-pandemic
  • https://www.businessinsider.com/16-million-people-have-taken-up-guitar-over-pandemic-fender-2021-10
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