The global true wireless stereo earbuds market size was valued at USD 25.32 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 36.1% from 2021 to 2028. The increasing demand for streaming content, coupled with the rapid proliferation of social media and short video apps, is anticipated to accelerate true wireless stereo (TWS) earbuds market growth over the next few years. TWS earbuds form an integral part of the smart audio devices industry, and the segment is expected to witness robust growth over the forecast period. The industry has already witnessed the benefits of integrating several sensors into one device. However, going forward, radical advancements in technology, including the development of powerful and cost-efficient Bluetooth chips with longer battery life, will pave the way for market growth.
The launch of Apple AirPods played a crucial role in leading the market growth in 2016, and several players, including smartphone and audio manufacturers, followed suit. Four years since the first launch, TWS has emerged as the fastest-growing segment in the smart personal audio market. The increased uptake of these devices has also resulted in supply chain upgrades globally with technological developments focused on the main control chip, power management, and earplug battery, among others. Apart from technology, convenience and audio quality are expected to continue to be the primary market drivers. Features, such as cable-free functionality and over 70% longer battery life, make these devices a popular choice among users.
Asia Pacific captured a sizeable market share in 2020, with products below USD 100 price band witnessing strong demand. APAC exhibits a dynamic market landscape with a mixed demand for premium as well as affordable products. Premium products appeal to consumers from Japan or South Korea who prefer sound quality and convenience over price. On the other hand, Southeast Asian countries have shown a high inclination toward low- to mid-priced devices. The demand for affordable devices in APAC is expected to surge over the forecast period as vendors, such as Xiaomi and Realme, strive to improve product availability in price-sensitive markets.
The COVID-19-led supply chain disruptions resulted in a minor setback for the industry. The production of TWS earbuds in China was impacted during early 2020; however, it returned to full utilization level by the second quarter. The pandemic did not, however, affect consumer demand as a relatively higher portion of the product sales was online. The rising product demand for fitness activities/work-from-home has kept the market growth steady during the pandemic.
Earbuds are also gaining prominence as a hearing aid device. Manufacturers are focused on incorporating hearing assistance features into their earbuds to assist people with hearing disabilities. Companies, such as Nuheara Limited and Apple Inc., have introduced ear ID personalization into the microchips that are used in TWS earbuds. The microchip enables users to create a unique sound ID based on the individual’s ear profile and listening capability. The sound passes through the earbud’s hardware and is amplified or reduced based on the configuration set by the user through the hearing assistance technology. Such advancements present an opportunity for vendors to introduce new features into their products, which is expected to bode well for the market growth in the future.
In 2020, the USD 100-199 price band segment accounted for the largest revenue share of over 50%. Vendors, such as Apple Inc., Samsung Electronics Co. Ltd., and Jabra, have largely contributed to the market share. Apple Inc. is anticipated to continue dominating the global hearables market over the next couple of years. However, the economic downturn and related uncertainties caused by the COVID-19 pandemic have boosted the growth of the below USD 100 price band segment.
Chinese and Indian brands, such as Xiaomi, Baseus, boAt, Noise, and PTron, have launched several products in the below USD 100 price band. This has led to a decline in the sale of higher-priced products, subsequently dropping the average selling prices for TWS earbuds worldwide in 2020. As the impact of the pandemic abates, the demand for mid-range products is likely to gain traction, propelling the launch of new products under the USD 100-199 price band. Companies, such as Apple Inc., Sony Corporation, and Jabra, are expected to launch new products in the low- to mid-priced range in 2021.
North America led the global TWS earbuds market demand in 2020 with a share of over 37%, which was closely followed by Asia Pacific. The popularity of AirPods has been instrumental in driving the demand for TWS in North America. Several smartphone vendors have introduced wireless earbuds with specialized connectivity to their own devices. With the rapid increase of smartphone replacement cycles, many consumers are also seen investing in related accessories. Smartphone vendors are expected to capitalize on these opportunities. The high technology penetration and early availability of newly launched products are also some key factors contributing to the market growth.
China and India are expected to lead the Asia Pacific regional market owing to the emergence of several vendors offering feature-packed products at competitive prices. Many Chinese and Indian vendors look for growth opportunities in overseas markets. Well-established vendors capitalize on the existing supply chain for increasing their cross-border e-commerce sales. Furthermore, these vendors offer affordable and appealing products that resonate well with a more extensive audience. Asia Pacific provides a large customer base and several opportunities for market growth with low entry barriers. These factors are anticipated to drive the product sales in Asia Pacific and the region is expected to surpass North America, in terms of revenue, over the forecast period.
The market is competitive with vendors, such as Apple Inc., Bose Corp., Sony Corp., and Skullcandy.com, holding a significant portion of the overall market. Market players are largely focused on introducing innovative features in their products to enhance the audio experience. For instance, Apple Inc.’s AirPods feature an innovative vent design that equalizes pressure within the ear to minimize discomfort, which is common with in-ear models. The AirPods have seen massive growth in sales since their launch in December 2016. However, many premium brands are losing their market share to Chinese vendors and local brands that offer differentiated features at low prices. Some of the major players operating in the global true wireless stereo earbuds market are:
Apple, Inc.
Bose Corp.
Jabra
Harman International Industries, Inc.
Sony Corp.
Sennheiser Electronic GmbH & Co.
Xiaomi
Report Attribute |
Details |
Market size value in 2021 |
USD 35,379.6 million |
Revenue forecast in 2028 |
USD 305,499.8 million |
Growth rate |
CAGR of 36.1% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2018 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million/billion, volume in million units, and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Price band, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; Spain; Rest of Europe; Greater China; India; Japan; South Korea; SEA; Rest of APAC; Brazil; Mexico; Rest of LATAM |
Key companies profiled |
Apple, Inc.; Bose Corp.; Harman International Industries, Inc.; Sony Corp.; Sennheiser Electronic & Co. |
Customization scope |
Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For the purpose of this study, Grand View Research has segmented the global true wireless stereo earbuds market report based on price band and region:
Price Band Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2028)
Below USD 100
USD 100-99
Over USD 200
Regional Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Spain
Rest of Europe
Asia Pacific
Greater China
India
Japan
South Korea
SEA
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
b. The global TWS earbuds market size was estimated at USD 25,328.6 million in 2020 and is expected to reach USD 35,379.6 million in 2021.
b. The global TWS earbuds market is expected to grow at a compound annual growth rate of 36.1% from 2021 to 2028 to reach USD 305,499.8 million by 2028.
b. North America dominated the TWS earbuds market with a share of 37.4% in terms of revenue in 2020. This is attributable to the popularity of Airpods and the early availability of newly launched products across the region.
b. Some key players operating in the TWS earbuds market include Apple, Inc; Bose Corporation, Jabra, Harman International Industries, Incorporated, Samsung Electronics Co. Ltd; Sennheiser Electronic GmbH & Co; and Sony Corporation.
b. Key factors that are driving the TWS earbuds market growth include the rapid proliferation of social media along with the rising demand for content streaming. Furthermore, the work from home and study from home practices during the pandemic is expected to boost the sales of true wireless stereo earbuds.
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