How large (or small) is the audiophile market?

There appears to be much more supply of high end product than any possible market for it. To prove this, I pulled a Stereophile issue from roughly 10 years ago and then researched some of the manufactures to see if they were still in business. Many were not going concerns. I don’t understand how so much new capital is being allocated to such a small market with seemingly endless new offerings. What market research is showing enough scale to the audiophile market to justify this?

The only guy I know that I would consider an audiophile owns a powerful old Marantz that he recapped himself, and he doesn’t chase more.  He is older, like myself.  With the high costs of living, and especially housing, I think younger Americans don’t have the money or interest to purchase high cost audio equipment (I know OP wasn’t asking about cost, but let’s face it — this is not a cheap hobby).  It’s appears that convenience, affordability and “good enough” are what Millennials and younger folks seek. 

I suppose to clarify, I would consider an audiophile to be anyone how cares about music reproduction enough to have some sort of playback system besides a smart phone and earbuds or an Alexa device.

When I was in college it seemed that pretty much 50% of men's dorm rooms had some kind f decent stereo.  I could count the women's dorm rooms with decent tunes on one hand.  So that would put the population at about 12.5% of students with decent music back in the 70's.

Now I don't really know anyone besides myself (and my system is pretty modest) who owns anything other than "lifestyle" products.  So that was the direction I was trying to go with this thread.  There is so much expensive equipment out there...who buys that stuff?

The market probably isn't growing uniformly. HT is probably doing better than high-end 2-channel. Many don't see that as "audiophile" but the truth is that many people entering the market of audiophile products have started in HT.  More esoteric markets, tube gear and such is gaining small increases in interest mainly from lower-cost products being available from eastern Europe and China. The toeholds are new brands from China that make experimentation affordable. The costs of many high end brands sharply limit the market to later-life affluent (mostly) men. As far as competing for discretionary dollars, audio just doesn't do all that well against rising costs of other necessary and desirable goods.

Like it or not, the torch-bearer for high-grade audio, in the U.S. anyway, is Magnolia. It is a gateway to 2-channel systems. The web is  the road to other dealers representing higher-end or rarer equipment. Audio shows might offer exposure if you live convenient to regular show venues.

Finding products from even mainstream brands like Yamaha is not as easy as in the past, at least not to see and hear in a shop.