EARPHONE AND HEADPHONE MARKET ANALYSIS

The global earphone and headphone market is estimated to be valued at US$ 72.54 Billion in 2023, and is projected to reach US$ 165.22 Billion by 2030, exhibiting a CAGR of 12.5% over the forecast period (2023-2030). 

Headphones are a crucial part of the gaming and sports sectors where high-quality and noise-canceling headphones are required. Manufacturers are focused on research and development activities and product innovation, in order to introduce novel products and expand their consumer base. Furthermore, companies are focused on entering into mergers and acquisitions in order to cater to various high-growth segments such as sports.

Asia Pacific region dominated the global earphone and headphone market in 2022, followed by North America, Europe, Latin America, and Middle East and Africa respectively.

Statistics:

Figure 1: Global Earphone and Headphone Market Share (%), By Region, 2022

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The emergence of new local suppliers of headphones like boAt that have attracted the attention of numerous customers and rivals alike has turned the India market into a center for wireless technology as introduced various True Wireless Stereo (TWS ) goods in the India market and is actively conducting product research. It has introduced new wireless earbuds called Airdopes 631 that are equipped with Qualcomm's aptX audio technology and offer call noise isolation at low prices. Additionally, it is anticipated that rising consumer disposable income, particularly in developing nations, such as Brazil, India, and China, will significantly boost the demand for headphones and earbuds in Asia Pacific and Latin America. North America and Europe are anticipated to experience consistent growth due to the ongoing adoption of premium earphones and headphones.

The online store segment is expected to drive the global earphone and headphone market growth during the forecast period

Among distribution channel, the online store segment is expected to hold a major market share and grow at a higher CAGR over the forecast period. Rising internet penetration has led to the emergence of the e-commerce sector that offers easy and convenient sales channels for a variety of products, which includes consumer electronics. As a result of this, it has boosted the sales of earphones and headphones via this channel. Moreover, increasing the adoption of smartphones and e-commerce apps is another factor leading to higher online sales of earphones and headphones. Consumers are inclined towards purchasing these products from online stores due to various online discounts offered by e-retailers.

Figure 2: Global Earphone and Headphone Market Share (%), By Distribution Channel, 2022   

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Major players operating in the global earphone and headphone market include Companies covered as a part of this study are Audio-Technica Corporation, Beats (Apple Inc.), Bose Corporation, Harman International Industries, Inc. (AKG), JVC Corporation, Philips Electronics Ltd., Plantronics Pty. Limited, Sennheiser Electronic GmbH & Co. KG, Sony Corporation and GN Netcom (Jabra)

Recent Developments:

• In August 2021, Bose, an audio equipment company, launched wireless noise-canceling headphones named “the QuietComfort 45.” The headphone costs US$ 330. QuietComfort 45 headphones have two modes of noise cancellation, Quiet Mode and Aware Mode and has a battery backup of 20 hours.
• In July 2023, Apple, a technology company, launched a wireless headphone, Beats Studio Pro in four color options. The company has created high-end headphones that works with both Android and iOS devices.

Market Driver:

• Increasing mobile device penetration: Adoption of mobile devices, especially tablets and smartphones has increased significantly in countries such as India, Indonesia, Brazil, and China. This adoption is due to increasing internet penetration and rising popularity of online music mobile streaming in these countries. According to the Coherent Market Insights’ analysis, smartphone vendors, such as Apple, have seen an increase in market share from November 2021 to December 2021, i.e., from 28.54% to 29.24%. Moreover, rising trend of e-banking, mobile shopping, Bring Your Own Device (BOYD) is boosting the adoption of smartphones and tablets and thereby driving the growth of the market in the near future.

Market Restraint:

• Rising threat of piracy and counterfeit products: Piracy and counterfeiting of products is a major threat to the market growth. The materials used in the production of these earphones and headphones are of substandard quality with low quality and durability. However, pirated products are offered at a fraction of the price of original products and hence are majorly preferred in emerging economies such as India and China. Thus, the presence, of counterfeit products is expected to restrain the growth of the global earphone and headphone market during the forecast period.

Market Opportunity:

• Growing demand for wireless headphones and earphones can provide lucrative business opportunities: Consumers are increasingly preferring wireless headphones and earphones, owing to the sophistication and ease of use provided by these products. Key companies in the market are focused on manufacturing trendy and innovative wireless headphones and earphones to cater to the rising demand from fashion-conscious consumers. Furthermore, technological advancements have led to the development of lightweight and compact earphones and headphones. Manufacturers are incorporating advanced features such as Wi-Fi, Bluetooth, and SKAA in wireless headphones and earphones for an increasing number of tech-savvy consumers. For instance, according to Coherent Market Insights, global earphone and headphone market size was US$ 4.65 Bn and expected to grow US$ 6.2 Bn till 2025.

Impact of COVID-19:

Due to the COVID-19 outbreak, the market has seen a halt in production and disruptions throughout the supply chain, which has led to delayed expansion of manufacturing output across important manufacturing hubs. All chip manufacturing activities across several nations have been impacted by the restrictions that the governments have put in place. Moreover, the pandemic had considerably increased the semiconductor demand in the consumer, telecommunications, and personal computer sectors, consumer electronics due to accelerating digital transformation and the adoption of remote work, remote study, movie streaming, and e-commerce technologies globally. Early in 2020, a number of manufacturers reduced their production capacity as a result of worsening semiconductor crisis and decreasing demand for global earphone and headphone market.

*Definition: Headphones exhibit a range of different audio reproduction quality capabilities. Headsets designed for telephone use typically cannot reproduce sound with the high fidelity of expensive units designed for music listening by audiophiles. Headphones that use cables typically have either a 1⁄4 inch (6.4 mm) or 1⁄8 inch (3.2 mm) phone jack for plugging the headphones into the audio source. Some stereo earbuds are wireless, using Bluetooth connectivity to transmit the audio signal by radio waves from source devices like cellphones and digital players.