Earphones & Headphones Market Size, Share & Trends Report

Earphones & Headphones Market Size, Share & Trends Analysis Report By Product (Earphones, Headphones), By Price, By Technology, By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-473-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 160

Report Overview

The global earphones and headphones market size was valued at USD 25.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 20.3% from 2020 to 2027. Rising consumer preference for enhanced audio experience, growing music industry, coupled with mobile technology and internet penetration, are some of the primary factors driving the market.

Asia Pacific earphones & headphones market size

Technological advancements such as the emergence of notch-less smartphones are anticipated to fuel the growth of wireless earphones over the forecast period. Additionally, rising consumer inclination towards stylish and attractive designs is expected to boost the sales of earphones and headphones over the forecast period.

Introduction of true wireless earbuds has brought about a paradigm shift in the way people listen to their music. These earbuds provide a user with a tangle free experience while listening to music as there is no wire connecting the left and right earpieces. The earbuds are compact and can be carried around in a charging case, making them extremely portable. The styling and portability of these products have made them popular among the young crowd, athletes, and fitness enthusiasts, which is expected to drive the market.

Technology developments are primarily driven by surging consumer demand for style and high-fidelity. Introduction of advanced features like active noise cancellation (ANC) and near field communication (NFC) is expected to offer a user with enhanced listening experience and fluidity in connectivity with their music devices. For instance, presence of active noise cancellation (ANC) technology in earphones and headphones eliminates the background noise, thus improving sound quality. Near field communication (NFC) establishes the connection between the wireless headphones and music device by just tapping them to each other. Such advanced features are anticipated to fuel the market growth.

Usage of earphones and headphones for fitness activities under various environmental conditions, like rain and dust, has propelled the manufacturers to add durability to their products. Several companies have manufactured their products with a certain (ingress protection) IPX rating, which is a safety rating to offer protection against dust and water. For example, IPX1 rated device is resistant to water droplets and can be dripped with water for 10 minutes. The level of protection ranges from the number 0 to 9 and increases with the highest level being IPX9, which offers protection against the spray of water from a high-pressure nozzle. Similarly, in the case of dust, the rating ranges from IP0X to IP6X, with IP6X being the highest. In some cases, the product may be resistant against both dust and water. For instance, products with an IP57 rating are dust tight and water resistant to high pressure sprays. Presence of such useful features and some significant development in product technology is expected to keep the product in demand over the forecast period.

Product Insights

In terms of revenue, earphones dominated the market with a share of 53.0% in 2019. This is attributed to the comfort in hearing music, low cost, and compact size. The lightweight design and portability of earphones make them a preferred choice for fitness and sports enthusiasts. Additionally, earphones provide good passive isolation from external sound, which translates into an immersive music listening experience for the user and is expected to drive the segment.

The bulky size and cost have reduced the popularity of the on-ear and over-ear headphones in recent years. However, technological advancements in these headphones with features, like active noise cancellation (ANC) and rich bass signature, make them a preferred choice among the audiophile community. The large-sized ear cups allow the manufacturers to equip the headphones with dynamic and electrostatic sound drivers, resulting in enhanced and clear sound quality. Companies like Bose Corporation, Sony Corporation, Sennheiser GmbH & Co. KG, and Skullcandy.com are engaged in improving the design and styling of their headphones by offering foldable headphones, leather ear cup cushions, and better build quality, which is expected to keep the headphones trending among the users.

Price Insights

In terms of revenue, the 50 to 100 USD segment dominated the market with a share of 39.2% in 2019. This is attributed to the technological developments in this segment, which are primarily driven by growing consumer demand for style and high fidelity. Additionally, short product replacement cycle results in positive impact on the earphone and headphone adoption. Rising demand for enhanced sound quality experience, coupled with economic volatility associated with these devices, is driving the adoption of 50 to 100 USD earphones and headphones.

The less than 50 USD segment is anticipated to witness significant growth in terms of volume over the forecast period on account of rising adoption, particularly in the emerging economies, including India, China, Brazil, and the Middle East. Wide availability of these products under this price category on e-commerce websites and retail outlets is likely to boost the segment sales. Additionally, presence of multiple players in the low range category is expected to drive the segment. Premium brands like Skullcandy.com, Xiaomi, Koninklijke Philips N.V., Sony Corporation, and JBL are some of the players offering their products in the low to mid-range price segment.

Technology Insights

In terms of revenue, the wireless segment dominated the market with a share of 76.2% in 2019. This is attributed to the introduction of true wireless earbuds and technological advancements in Bluetooth connectivity of wireless devices. Wireless earbuds were first introduced by a company named Bragi, based in Munich, Germany. Meanwhile, the launch of AirPods from Apple, Inc. in 2016, shifted the momentum entirely from wired products to wireless products. Besides, local players like boAt, Zebronics India Pvt. Ltd., Xiaomi, Boult Audio, GoNoise, and Portronics, and MiVi are engaged in offering wireless earphones at lower prices, which is further expected to drive the segment.

Furthermore, introduction of smart features like voice assistance, gesture recognition, fitness tracking, and wearing detection for play and pause of music is expected to increase the adoption of wireless earphones and headphones. Nowadays, wireless earphones and headphones are also equipped with better Bluetooth technology to facilitate better connectivity at long distances and enhanced battery life for long hours of listening. Such advanced features and continuous innovations are anticipated to drive the market for wireless products. However, wired products are expected to maintain their market share in future owing to the low price, zero latency, and better audio quality offered by these devices.

Application Insights

In terms of revenue, the music and entertainment segment dominated the market with a share of 41.6% in 2019. This is attributed to the rising adoption of earphones and headphones for casual music listening, usage by audiophiles, and listening and creating sound effects in the music and entertainment industry. The virtual reality application segment is expected to witness significant growth over the forecast period owing to the growing adoption of earphones and headphones across the education, construction, business, and armed forces sectors primarily for training purposes. For example, in armed forces, the headphones are generally used along with simulators to provide realistic sound experience during training.

Global earphones & headphones market share

The fitness segment is expected to witness high adoption of wireless earphones, with the inclusion of fitness trackers and heart rate monitoring in the earphones. The fitness trackers allow the athletes and individuals to monitor and plan their daily workout regime, diet, calories burnt, and distance covered. The heart rate monitoring technology measures the heart rate through the ears and transmits the beats per minute (BPM) data to the smartphone application, which can be used to plan the workout. Brands like Bose Corporation, Jabra, Sony Corporation, and Samsung Electronics Co., Ltd. have introduced fitness tracking and heart rate monitoring.

Regional Insights

In terms of revenue, Asia Pacific dominated the market with a share of 29.7% in 2019. This is attributed to high penetration of smartphones and rising disposable income in the region. Furthermore, various key business players are investing significantly in China owing to the emergence of low-cost technology and availability of cheap labor in the region. However, increasing availability of counterfeit products designed and manufactured, especially in India, has enabled various key players to establish their manufacturing facilities in the region, thereby resulting in market growth.

North America held the second largest market share in 2019, followed by Europe. This is attributed to the already established market, coupled with high technology penetration in these regions. Companies in this region are focused on investing in R&D and continuous innovation in product development. Furthermore, presence of major industry players in the region, such as Apple Inc., Bose Corporation, GN Store Nord A/S, Harman International Industries, Incorporated, and Sennheiser GmbH & Co., KG, is expected to drive the market across North America and Europe.

Key Companies & Market Share Insights

The market is highly fragmented and is characterized by high competition with the presence of major global players. These companies particularly focus on enhancing the product quality by adopting advanced and innovative techniques to enhance their market presence and expand their geographical reach. For instance, in September 2018, Skullcandy, Inc. announced the launch of a new wireless headphone known as Riff Wireless. Riff Wireless headphone is lightweight, includes a bendable band, and is equipped with Bluetooth and Rapid Charge technology.

Similarly, various key players are increasingly focusing on enhancing their network and customer base in order to cope with the growing competition from new vendors. For instance, in September 2018, Beats by Dre announced its merchandising and marketing partnership with the National Basketball Association (NBA). Through this partnership, Beats by Dre aims to be the official and the only wireless speaker, headphone, and audio partner for NBA. Some of the prominent players in the earphones and headphones market are:

  • Apple Inc.

  • Bose Corporation

  • Harman International Industries, Incorporated

  • Sony Corporation

  • Sennheiser Electronics GmbH & Co. KG

  • GN Store Nord A/S

  • Skullcandy.com

Earphones & Headphones Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 34.8 billion

Revenue forecast in 2027

USD 126.7 billion

Growth Rate

CAGR of 20.3% from 2020 to 2027

Market demand in 2020

514.5 million units

Volume forecast in 2027

1335.7 million units

Growth Rate

CAGR of 14.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in million units, Revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume and revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, price, technology, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

Apple Inc.; Sony Corporation; Bose Corporation; Sennheiser Electronics GmbH & Co. KG; Skullcandy.com; Harman International Industries, Incorporated; GN Store Nord A/S

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global earphones & headphones market report based on product, price, technology, application, and region:

  • Product Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

    • Earphones

    • Headphones

  • Price Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

    • Less than 50 USD

    • Between 50 to 100 USD

    • Above 100 USD

  • Technology Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

    • Wired

      • ANC

      • Others

    • Wireless

      • ANC

      • Bluetooth

      • NFMI

      • Smart headphones

      • Others

  • Application Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

    • Fitness/Sports

    • Gaming

    • Virtual Reality

    • Music & Entertainment

  • Regional Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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