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Audio ended 2016 on a high note with global sales growing 28 percent to $10.2 billion in the last three months of the year, according to new google research from U.K.-based Futuresource Consulting.

The strong finish was attributed to home audio and headphones, which are “both pushing the market forward, growing by 33 percent and 24 percent, respectively,” said senior market analyst Rasika D'Souza.

"This resounding Q4 performance underscores a record breaking year for audio hardware sales, clearly demonstrating how recent advances in the market are really connecting with consumers," D’Souza added, noting that forecasts point to continued growth in audio throughout 2017.

Smartphone uptake and the popularity of music streaming services continued to drive growth in the category, which received boosts from three areas, according to Futuresoure: the launch of Amazon's Echo and Dot personal assistant/speakers in more countries, the launch of Google Home in the U.S., and widespread adoption of wireless headphones.

Sales of the Echo and Dot surged forward in the final months of 2016, accounting for about 30 percent of wireless speaker sales in the U.S. and 34 percent in the U.K., according to research analyst Zlata Jelisejeva. The boom in units shipped worldwide also elevated Amazon to the No. 2 brand positon in the fourth quarter, up from fifth in the preceding three quarters.

The analyst noted that Apple's move to build the iPhone 7 without a headphone jack was also a factor in audio’s strong showing, accelerating sales of wireless headphones and boosting the wider market, with wireless representing 49 percent of U.S. headphone sales in the October-December time frame.

Despite audio’s overall strong performance, Futuresource said many sub-categories are starting to shrink or slow down rapidly. The firm put hi-fi systems, speakers, separates, and soundbars among the “losers in 2016.”

"As the world of audio revolves and consumers make their increasingly discerning choices, new technologies, software, content, and fashion trends all play their part in the performance," D'Souza said. "The world is changing. Ten years ago the audio market was dominated by vendors from Japan and Philips, whereas now we see the likes of Bose, Beats (Apple), Harman, and Sonos as well as Sony jostling for position among the leading five. Watch out for key developments in Voice Personal Assistant (VPA) speakers and wireless (and true wireless) headphones as the market surges forward."