Headphones (Global Market)

2022: Wireless headphone sales down 2%

In 2022, global shipments of wireless headphones of different types decreased by 2% compared to the previous year. Such data was released on March 7, 2023 by the analytical company Canalys.

Devices of three categories are taken into consideration. These are fully wireless submersible headphones (TWS), wireless submersible headphones that have a wired connection between the inserts, and wireless on-ear headphones.

Analysts say that, like many other IT segments, this market has suffered due to the difficult macroeconomic environment and high inflation. At the end of 2022, the total sales of devices of all these categories amounted to 287.7 million units. For comparison: a year earlier, deliveries were estimated at 292.8 million units. The TWS segment, which previously acted as the main driver of growth in wireless headphone sales, showed a negative trend of 23% by the end of 2022. At the same time, the demand for conventional wireless in-ear headphones decreased by 36%, and for on-ear devices - by 25%.

Since the beginning of 2022, suppliers expected a gloomy market situation due to macroeconomic conditions and carefully monitored the level of inventory throughout the year. This worsened the overall sales performance of the TWS segment as deliveries were kept to a minimum. At the same time, emerging markets in Latin America and Southeast Asia, which were once seen as potential areas of growth, did not meet expectations due to a deteriorating market situation, the Canalys report said.

At the end of 2022, Apple took the first line in the ranking of leading market players, supplying 91.4 million headphones, which is 1% less compared to 2021. At the same time, the company's share on an annualized basis rose from 31.7% to 31.8%. Samsung is in second place: its sales fell by 10% to 25.6 million units. The share of the South Korean manufacturer decreased from 9.7% to 8.9%. The third position went to Xiaomi, whose deliveries for the year collapsed by 34%, amounting to 15.2 million units. The position of the Chinese company weakened from 7.9% to 5.3%. Next comes the Indian BoAt, which, despite the crisis, was able to increase sales by 52% to 12.8 million units, as well as increase its share from 2.9% to 4.4%. Closes the top five Skullcandy, which sold 9.9 million wireless headphones in 2022, which is 15% less compared to 2021. The company's share fell from 4% to 3.5%. All other market players jointly shipped 132.7 million devices, which corresponds to a share of 46.1% in total sales.

In 2022, the share of TWS models among all wireless headphones reached 68% against 63% in 2021. This is due to the high demand for such gadgets in India. In the future, the supply of such devices, as Canalys notes, will continue to grow. This will be facilitated by the decision of the US Food and Drug Administration on the possibility of producing over-the-counter hearing aids in the format of TWS headphones. Several well-known brands, such as Jabra, Sennheiser, Sony and Bose, have already presented solutions of this type.

TWS headphones with hearing aid functions will help people with hearing impairment to address antipathy to traditional hearing aids. In 2023, sales of devices of the new category are estimated to reach 1 million units. Such gadgets will help certain groups of consumers hear better while improving the quality of life. Suppliers who want to capitalize on this trend should invest in creating a supply chain for bringing next-generation TWS devices to market, said Canalys Research analyst Sherry Jin[1]

2021: The global wireless headphone market grew 24%. Leaders

The global market for wireless headphones of the class in 2021 reached 300 million units, an increase of 24% compared to 2020. Revenue from the sale of such gadgets increased by 25% (absolute indicator is not specified). This is reported by analysts at Counterpoint Research.

We are talking about the so-called fully wireless devices (true wireless stereo, TWS), when one earphone from the kit does not connect to another cable. Apple with her model AirPods is considered a pioneer of this market.

Wireless Headphone Market Leaders, Counterpoint Research Data

At the same time, the American corporation remains the largest manufacturer of such products: in 2021, it accounted for about a quarter of the market. However, Apple in 2021 showed a slight increase in TWS sales (+ 5%), which was the result of the belated release of the AirPods 3 line. Demand for AirPods 2 and AirPods Pro was strong throughout the year thanks to promotions, the study said.

In 2021, Samsung increased sales of TWS headphones thanks to the new Galaxy Buds Pro and Galaxy Buds 2 models, which were released in the first and second half of the year, respectively. Among other brands, Skullcandy and boAt, which have become key players in major regions such as North America, Europe and India, showed noticeable growth, experts say.

Senior analyst Liz Lee, who oversees research on the TWS market at Counterpoint Research, noted that in 2021 the segment of such headphones costing from $50 to $100 grew significantly due to the fact that Xiaomi began to expand their range, while previously the Chinese company relied mainly only on products up to $50.

In addition, competition in the $50-100 segment of headphones has intensified: OEMs, smartphones such as Oppo and, OnePlus have faced the activity of emerging brands such as Skullcandy, JLab and Nothing. All this competition has led to new products characterized by good quality and enhanced functionality at reasonable prices. In addition, this stimulated the growth of the entire market in 2021, - said Liz Lee.

In the segment of headphones with price tags from $200 and above, Apple absolutely dominates with a 75% share in 2021. In the category of products worth up to $50, Xiaomi showed the highest sales, but the boAT brand was the largest growth.

According to the research company Canalys, in 2021, TWS devices occupied 63% of the smart personal audio market, while in 2020 their share was at 59%, and in 2019 - 45%.

Wireless Headphone Market Breakup by Product Price Categories, Data from Counterpoint Research

According to Canalys estimates, in 2021, manufacturers released more than 467.4 million personal audio devices with smart functions, increasing their shipments by 8% compared to 2020. The number one brand here also includes Apple, which is represented on the market not only by AirPods, but also by Beats accessories. In 2021, the company shipped 103.9 million of these devices, which is 5% less than in 2020, Canalys said.

In second place in the smart personal audio market is Samsung, which has released 43 million TWS devices, wireless headphones and headsets. Compared to 2020, deliveries increased by 12%, and the market share of the South Korean vendor rose from 8.9% to 9.2%.

Xiaomi closed the top three with shipments of 25.3 million devices and a market share of 5.4%. A year earlier, the indicators were at the level of 25.4 million units and 5.9%, respectively. In addition, the top 5 includes Boat and Skullcandy, whose contribution to the supply of personal audio devices with smart capabilities amounted to 20.6 and 17.6 million units, or 4.4% and 3.8% of the total result.^[2]

2020: Wireless Headphone Market Growth by 90%, Sales Leaders - Strategy Analytics

At the end of January 2021, Strategy Analytics presented a preliminary report on the all-wireless headphone (TWS) market, which soared 90% in 2020. The leaders in sales in 2020 were TWS headphones such as Apple AirPods and Samsung Galaxy Buds.

The abbreviation TWS stands for "True Wireless Stereo," that is, those headsets whose headphones are not connected by wire not only to the signal source, but also to each other. According to analysts, more than 300 million Bluetooth headsets were sold in 2020, and sales in the TWS segment increased by almost 90% compared to 2019. The market leader was Apple, whose Apple AirPods dominated the market for all-wireless Bluetooth headsets, followed by Xiaomi, followed by Samsung, Huawei, Realme.

Global sales of TWS by share of vendors for 2020 (in%, data from Strategy Analytics)

The advent of affordable TWS headsets has led to an increase in global sales of Bluetooth headsets, "said Ken Hyers, director of Strategy Analytics, in a report. - Although demand declined slightly in the first half of the year due to the pandemic, sales increased sharply in the second half of the year. The move to work from home has benefited the entire Bluetooth headset category in terms of sales growth.

The deputy director of Strategy Analytics believes that wireless headphones will grow in 2021. This is due to the fact that many companies have stopped putting headphones in the box for their smartphones. Because of this, users will have to buy them separately, especially since so far less than 10% of people in the world have Bluetooth headsets.

However, experts note that Apple's position in the wireless headphone segment may be shaken due to fierce competition. The tandem of brands like Xiaomi, Samsung, Huawei and Realme hold roughly two-thirds of the industry so far.^[3]

2019

The global market for professional headphones reached $1.41 billion

According to Frost & Sullivan analysts, the global market for professional headphones in 2019 amounted to 22.9 million units, while revenue was measured at $1.41 billion. Experts did not specify the dynamics of sales and only noted that we are talking about growth. Moreover, positive dynamics will continue due to the increase in the popularity of cloud services for conferences, as well as the massive transition to a remote format of work and education.

Headsets with USB connection and devices for implementing unified communications are in particular high demand. Sales of models with a RJ9 connector continue to decline, but the pace of decline has not become as large as before, as contact centers began to purchase more such equipment for their employees working from home.

Global headphone market reaches $1.41 billion in 2019

In the context of the growth of the professional headset market, Frost & Sullivan experts recommend that manufacturers do not stop working to improve their products and initiatives in order to earn on lively demand and strengthen their positions. This can be achieved, for example, thanks to the following measures, which are reported by experts:

• Collaboration with leading unified communications providers
• Creating home devices with audio and video equipment manufacturers
• improved noise suppression technologies to improve sound quality.

Analysts also advise vendors to invest in consumer solutions that can be personalized and customized to the needs of each person. Another recommendation from analysts is to focus on meeting the specific needs of different vertical industries and to offer joint solutions DaaS (equipment rental SaaS) and () software for business customers.

The study also said that manufacturers of professional headsets in the first half of 2020 faced problems in the supply channel, but in the second half of the year companies will be able to overcome the crisis and successfully meet pent-up demand.

Frost & Sullivan: 2019 saw demand for USB-connected headsets and unified communications devices

According to the study, the massive use of IoT sensors combined with Big Data technologies offer great prospects for predictive and behavioral analytics. In the near future, manufacturers will provide professional headsets with heart rate monitors, accelerometers and other sensors that will help track the physical condition of employees in real time. Combined with analytical systems based on big data technologies, such devices will give more information about the fatigue of employees, factors that cause stress, etc. The ultimate goal of such technologies is, based on the information received, to make working in the office more comfortable and efficient.

Analysts associate another trend in the professional headset market with artificial intelligence. By the end of 2019, AI-based voice assistants like Amazon's Alexa and Google's Assistant are used mostly in conjunction with smart speakers and other consumer devices. But Frost & Sullivan notes that artificial intelligence and voice interfaces have a great future in the corporate sector. Thus, the developers create with built-in 3G and Wi-Fi communication modules and the ability to make voice requests to AI systems without the help of a smartphone or computer. Thanks to such equipment, employees working outside the office will be able not only to always stay in touch, but also to instantly receive the necessary information from digital assistants.^[4]

Global headphone market soars 55%

The volume of the global headphone market in 2019 reached $35.1 billion, an increase of 55% compared to 2018. Quantitative deliveries of devices increased by 17% and reached 445 million units. This is evidenced by the data of the analytical company Futuresource Consulting.

These figures differ significantly from those cited by other experts. So, Grand View Research counted $25.1 billion in headphone sales at the end of 2019.

The largest segment of the headphone market remains wireless headsets, sales of which in 2019 amounted to 76.2% of the total. The average cost of such gadgets has risen thanks to Apple AirPods wireless headphones.

Sales of various types of headphones in the Asia-Tikhoecan region, data from Grand View Research

According to the researchers, Apple leads both in sales of wireless headphones and in the entire market. The company's leadership is provided by the AirPods Pro model. The largest manufacturers of headphones in the world are technology companies: Apple, Sony, Xiaomi and Huawei. Only one audio brand hit the top five - JBL.

According to experts from Strategy Analytics, sales of fully wireless (Totally Wireless, TWS) headphones in 2019 increased by more than 200%. Leading Apple has sold about 60 million fully wireless AirPods, which is more than 50% of the total sales of TWS headsets.

Apple made an even more significant contribution in monetary terms. AirPods accounted for over 70% of total revenue in the market under consideration. In second and third places are TWS headsets Samsung and, Beats again with a significant lag behind the leader.

More than half of the world's headphone shipments in 2019 were occupied by models that fit into the ears rather than being mounted with a head shower, as is the case with many gaming equipment. The dominance of the so-called "inserts" is due to their low cost, compact size and ease of listening to music. Light weight and portability make such headphones the main choice for those who play sports. In addition, earbuds inserted into the auricles have good indicators of passive suppression of external noise, allowing users to focus on the music being played. It is expected that it is noise cancellation technologies that will become one of the main drivers of segment growth.

Global Headphone Market Segments, Data from Grand View Research

At the same time, bulky and expensive on-ear headphones continued to lose popularity around the world by 2019. Their main audience remained only audiophiles - people who have increased requirements for sound quality. They choose on-ear headphones for their active noise cancellation, rich bass and other parameters that compact gadgets cannot boast of. Companies and Bose Sony Sennheiser Skullcandy are leading in this segment, which continue to improve foldable headphones.

More than 39% of headphones sold in 2019 worldwide cost between $50 and $100. Analysts explain the high interest in devices from this price range by the fact that they often have a stylish design and high sound quality. In addition, headphones are often updated, so users do not want to buy expensive products.

According to the researchers, the introduction of smart features such as voice assistance, gesture recognition, physical shape tracking, and ear headphone recognition to play and pause music will lead to increased adoption of wireless equipment in the market. Another factor in the growth is support for improved Bluetooth technology, which provides better communication over long distances and increases battery life during long-term operation.^[5][6]

Russian market

Main article: Headphones (Russian market)

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