The global hearing aids market size was valued at USD 5.3 billion in 2018 and is projected to grow at a lucrative rate over the forecast period. This can be attributed to key factors such as increasing adoption of these devices, growing awareness about technologically advanced devices for the treatment of deafness, and increasing prevalence of hearing loss due to the growing geriatric population.
Hearing service offices and general healthcare service associations of local governments in both developed and developing economies are emphasizing early screening of deafness and the provision of hearing aids to people. As the healthcare sector in emerging economies is moving towards privatization, healthcare infrastructure in these countries is undergoing rapid development. Education and increased awareness about health among people are also playing an important role in increasing the demand for these devices and their diagnostic services.
Countries all over the world are focused on reducing deafness and this, in turn, has led to the introduction of various initiatives that aim to promote awareness and provide free care to patients. Subsidies, grants, and funding are offered by governments all across the world to prevent and manage hearing disorders.
For instance, the New South Wales (NSW) Statewide Infant Screening-Hearing (SWISH) program in Australia aims at identifying babies born with permanent bilateral deafness in NSW. Such initiatives are expected to further boost the demand for these devices globally. Furthermore, in August 2017, the Over the Counter (OTC) Hearing Aids Act was signed by President Trump, which is aimed at increasing the adoption of these devices amongst patients without the need of prescription of healthcare practitioners. The introduction of this act is expected to positively reinforce growth in the U.S., which is a prominent region in the global hearing aids market.
Behind-the-ear (BTE) products dominated the market in 2018. Canal devices are anticipated to emerge as the fastest-growing products with a CAGR of 8.7% in terms of revenue and are expected to remain the same over the forecast period.
BTE hearing aids consist of a small curved case that comfortably fits behind the ear. Modification of these products is possible by connecting them to external sound sources, such as infrared listening systems and auditory training equipment. Various BTE models are Bluetooth compatible and they enable better wireless connectivity, thus driving the market.
These devices also provide a higher sound amplification owing to a strong amplifier and a large battery. Furthermore, behind-the-ear (BTE) devices are easy to handle and clean and are more preferred by the younger population as they can fit into various ear molds. Moreover, they don’t need device replacement as the child grows. With technological advances, new products such as the Mini BTE are developed, which are smaller in size and provide more comfort. These factors are responsible for the growth of these BTE products in the hearing aids market.
Canal devices are discreet devices, which is one of the critical success factors for their rapid growth. Wearing hearing aids comes with a stigma therefore, young adults prefer canal devices over other devices. Additionally, these devices are technologically advanced and significantly cancels external voices and reduce tinnitus. The above-mentioned factors are responsible for the growth of canal devices in the coming years.
Digital devices dominated the market with a revenue of USD 4.9 billion in 2018 and are anticipated to expand at the fastest CAGR over the forecast period. The analog devices are on the verge of getting obsolete with a slower growth rate as compared to their digital counterparts.
Despite this, manufacturers continue to produce analog hearing aids owing to low cost and reluctance of a handful of users to switch to digital ones. Analog devices work on the principle of increasing the intensity of continuous sound waves. A uniform amplification of all sounds such as speech and noise takes place in these products. A few analog devices are programmable owing to the presence of an embedded microchip that allows the programming of different settings for different listening environments.
A digital device converts acoustic sound waves into digital form and facilitates the exact duplication of sound. The digital signal is then reconverted to a processed analog acoustic signal tailored as per the listener’s requirement. Computer chips in digital hearing aids help analyze speech and other surrounding noises. Also, these products provide multiple program memories. These added features of these auditory aids are expected to drive its demand over the forecast period.
Retail sales dominated the market with a revenue of USD 3.9 billion in 2018 and are also expected to expand at the fastest CAGR over the forecast period. Implementation of OTC hearing aids acts as one of the pivotal factors for a large share of retail sales. E-commerce and government purchase of these devices is expected to grow at a lucrative rate over the forecast period.
Retail stores dominated the market owing to a large number of retail stores, a rising number of manufacturing companies entering retail sales, and a high sales margin. Retail sales of these products are further segmented into company-owned retail sales and independent retail stores. Independent retail stores dominated the retail store's sales channel owing to the low-entry barriers for new retail outlets, high-profit margin, and high level of interaction with customers. Key players operating in independent retail sales include Walmart, Costco, and CVS.
E-commerce sales are considered as a lucrative sales channel for hearing aids. The E-commerce sales channel is expected to develop at a revenue-based CAGR of 4.8 % over the forecast period. The Internet plays a significant role in making a purchase decision and acquiring information about hearing aids, especially for young adults and millennials. These players help the wearer to get screened for auditory loss and acquire more information on technology. Their website also helps the wearer to make product and price comparison, thus helping in making a purchase decision.
These e-commerce sales channels also help to increase the affordability and availability of hearing aids in the global market, by providing premium payment plans to wearers. They help increase the sales volume by avoiding retail and wholesale markup costs and providing the lowest possible cost to their customers.
Europe dominated the market in 2018 with a revenue of USD 2.2 billion and is expected to grow at a lucrative rate over the forecast period. This is attributed to an increase in the prevalence of deafness and rising awareness about technological advancements. Asia Pacific is anticipated to exhibit the fastest CAGR over the forecast period.
An increase in the prevalence of auditory loss and a rise in awareness about technological advancements are the major factors driving the demand for these devices in Europe. Also, the growth of the audiology devices market in this region depends on the reimbursement policies of each European nation. According to the European Federation of Hard of Hearing People, in 2015, about 51 million people suffer from deafness in the European Union. In the U.K., 11 million people are suffering from hearing loss. Because of an increase in the aging population in Europe, hearing impairment is expected to rise, which, in turn, expected to drive the market in Europe.
The market in the Asia Pacific is anticipated to witness the fastest growth over the forecast period owing to a large population base, increasing prevalence of the geriatric population, coupled with improvements in the distribution network of global market players. Market leaders are continuously developing advanced products that are enhancing the benefits of these devices to target consumers and driving acceptance of these devices in the region. Other factors driving the market in the Asia Pacific are growing disposable income and healthcare expenditure of the general population, coupled with government initiatives.
Some of the prominent market players are Phonak; Benson Hearing; GN Store Nord A/S; Starkey; MED-EL; William Demant Holding A/S; Medtronic; Widex USA, Inc.; and Sivantos Pte LTD. The market is dominated by leading six companies: Sonova, William Demant, Sivantos, GN ReSound, Starkey Technologies, and Widex, accounting for over 90% share of the overall market.
Furthermore, manufacturing outsourcing has emerged as a key trend among market participants to further gain or sustain their position in the market. China and South Korea are among the key destinations where most of the manufacturing outsourcing is happening due to superior manufacturing expertise, low manufacturing cost, and a strong presence of trained professionals.
The base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD million & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, Germany, U.K., Spain, France, Italy, Russia, Japan, China, India, Singapore, South Korea, Australia, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, and UAE
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at the global, country, and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global hearing aids market report based on product type, technology type, sales channel, and region:
Product Type Outlook (Revenue, USD Million; Volume, ’000 Units, 2014 - 2025)
Technology Type Outlook (Revenue, USD Million; Volume, ’000 Units, 2014 - 2025)
Sales Channel (Revenue, USD Million; Volume, ’000 Units, 2014 - 2025)
Regional Outlook (Revenue, USD Million; Volume, ’000 Units, 2014 - 2025)
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With Covid-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for Covid19 as a key market contributor.