The global earphones & headphones market size was valued at USD 10.52 billion in 2018 and is expected to register a CAGR of 5.9% over the forecast period. Consumer preference for enhanced audio experience, rapidly growing music industry, rising internet penetration, and advancement in mobile technology are the primary factors driving the market.
Technological advancements, such as emergence of notch-less smartphones, is anticipated to fuel product demand over the forecast period. In addition, rising demand for fashionable and attractive designs is expected to boost the product sales. Furthermore, advent of advanced technologies, such as Active Noise Cancellation (ANC) that helps eliminate background noises resulting in enhanced sound quality, is expected to boost the market.
Rising popularity and adoption of smartphones, tablets, laptops, portable music players, and other mobile devices is also expected to have a positive impact on the industry growth. The emergence of mass-market audiophile era has resulted in some significant developments in product technology and is expected to upkeep the sales over the forecast years.
The recent expansion of the market for portable audio devices, such as MP3 players, hand-held gaming consoles, and multimedia phones, is also anticipated to positively impact the product demand. Developments in this industry are characterized by the demand for high-quality sound. Asia Pacific is estimated to witness the highest CAGR over the forecast period. This growth is attributed to the enhanced sale of smartphones and tablets along with the proliferation of music streaming services.
The in-ear segment is anticipated to account for the maximum market share by 2025 due to growing demand for wireless earphones across the globe. Benefits, such as high sound quality offered by in-ear devices, have increased their demand. The headphones segment is also anticipated to witness considerable growth on account of technological developments in terms of product features, such as Bluetooth, Wi-Fi, infrared, and SKAA.
On the basis of price, the market has been segregated into less than 50 USD, between 50 to 100 USD, and above 100 USD. The below USD 50 segment accounted for a significant share in 2018. Shorter product replacement cycles is the primary factor that contributed to the segment’s market share. However, the overall market is highly dynamic in nature and prices fluctuate depending on new product offerings by different companies. Higher demand for inexpensive products in emerging economies including India, China, Brazil, and Middle East will drive the segment further.
Based on technology, the market is segregated into wired and wireless. The wireless segment is estimated to witness the fastest CAGR of 6.0% over the forecast period owing to advancements, such as Bluetooth, infrared, and W-Fi. A number of start-ups and well established companies, such as Samsung Electronics, Bose Corporation, and Sony Corporation, are focusing on developing innovative products. This is further expected to boost the demand for wireless products.
Based on application, the earphones and headphones market is categorized into fitness, gaming, Virtual Reality (VR), and music & entertainment. Virtual reality is expected to be the fastest-growing application segment at a CAGR of more than 14% over the forecast period. Rising need to enhance the VR experience is driving the segment demand.