Earphones And Headphones Market Size By Technology (Wired, Wireless), By Product (In-Ear, Over-the-Ear), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, India, China, Japan, South Korea, Brazil, Mexico), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2023
Published Date: June 2016 | 79 Pages | Report ID: GMI482 Report Format: PDF
Earphones and Headphones Market size was USD 11.68 billion in 2015, with 4.6% CAGR from 2016 to 2023, to exceed USD 18 billion by 2023. Global shipments are poised to exceed 470 million units by 2023, at 3.9% CAGR expectations over the forecast timeframe.
Europe earphones and headphones market size, by technology, 2012-2023 (USD Million)
Product miniaturization in light of changing consumer preferences and technological advancements will drive revenue in the coming years. High degree of compatibility with personal electronics including smartphones, tablets, and music players is forecast to favorably impact consumption. Additionally, growing number of features including Bluetooth, infrared, Wi-Fi, etc. in wireless products will propel growth.
Global headphones market has evolved from being predominantly a home audio accessory to a premium portable AV device. Products integrated with microphones have witnessed increased adoption. Additionally, incorporation of fitness features and intense competition has resulted in growing efforts towards product differentiation.
Enhanced product development has led to growing headphone market price trend, this is forecast to be offset by growing purchasing power and superior branding exercises. Increasing usage in corporate organizations is also expected to drive the global earphones and headphones market size. Short replacement cycle due to frequent product updates is projected to fuel shipments.
Presence of a large unorganized sector in Asia Pacific, especially in countries such as China, India, Indonesia, and Taiwan may hinder growth significantly. Increasing adoption of these counterfeit products on account of price sensitivity is estimated to hamper the earphones and headphones market over the coming years.
Wired earphones and headphones market size was over USD 10 billion in 2015. The segment is forecast to grow at 4.6% CAGR from 2016 to 2023. Major technological advancements in wireless products will drive demand across the high fidelity headphones and earphones market. Noise cancellation technology or active noise control for an enhanced listening experience will prove favorable for growth.
Companies aim to provide devices that are technologically advanced in nature. Additionally, the rising trend of providing a holistic experience may contribute positively to revenue.
Earphones market share accounted for over 70% of the global volume in 2015. This can be attributed to high consumer demand for use in conjunction with portable personal electronics. Product replacement trends, growing smartphone sales, and increasing disposable income are predicted to contribute to growth.
The global headphones market is poised to exceed USD 6 billion by 2023. Existing vendors aim to enhance their distribution channels in order to sustain and expand in the global industry. Manufacturers invest heavily in R&D and emphasize on developing innovative products that offer maximum product differentiation.
Sports headphones that are equipped with a multitude of features are expected to gain share over the forecast timeframe.
U.S. earphones and headphones market size will grow at 4.8% CAGR to exceed USD 5 billion by 2023. Manufacturers are expected to comply with the rules and standards passed by legal aouthorities such as OSHA and The Director of Federal Register pertaining to the use of appropriate components used in production.
China contributed to majority of the Asia Pacific earphones and headphones market share in 2015, with the trend expected to persist over the forecast timeframe. Increasing number of use cases, with multiple products per user will provide a fillip to global consumption and revenue generation.
Competitive Market Share
Companies accounting for earphones and headphones market share include Sennheiser Electronics, Beats Electronics (Apple), Bose Corporation, Shure, etc.
Sennheiser invests heavily in R&D and follows aggressive growth strategies with new product creation and product development being their key growth strategy. The industry is highly competitive with existing manufacturers investing heavily in R&D for developing innovative techniques and increase product differentiation. Majority of the industry participants focus on new product development and technological innovation. Incumbent players also focus on strengthening distribution channels in order to compete with emerging participants.
Improved customer service, rapid development cycles, and high focus on R&D are among the major business development areas of the majority of industry leaders. Mergers and acquisitions are another trend witnessed over the past few years. For example, Apple acquired Beats Electronics and Beats Music in May 2014 to establish itself firmly in the industry. R&D investments help companies identify key growth areas and develop innvative technology to ensure product differentiation.
Bluetooth headphones are useful and versatile investment as Bluetooth technology is being integrated in various appliances including smartphones, tablets, laptops, among others. Furthermore, they are very efficient in sound quality, sleek and easier to carry. The technology does not use any cables thereby making it an optimal device and require less energy to emit signals.
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