Earbuds Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Earbuds Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The earbuds market is expected to reach at a CAGR of 20% over the forecast period (2021 - 2026). These products are designed and launched in as wireless smart headphones with sensors, chargeable carry case, capable of controlling the playback, and activating voice assistants like Siri, Google Now, Cortana, and Alexa. The increasing penetration of smartphones and growing demand for smart tech in emerging countries of China and India will boost the demand for medium range products in the global market. Lately, the focus has also been on providing an aesthetic design to devices to attract the customers.

Key Highlights

• The integration of Wi-Fi and Bluetooth technologies on a single IC leads to the development of cost-effective and compact wireless audio devices including earbuds. Demand for uninterrupted connectivity to different devices from smartphones. Bluetooth connectivity and Wi-Fi among other technologies, increase the utility of earbuds by offering them high-speed connectivity.
• For instance, Munich-based tech firm Bragi provides earbuds having features such as 4 GB of storage for mp3 collection, physical and biofeedback sensors to track heart rate and oxygen saturation, measurement of steps and pace, audio feedback throughout workout. Toss in touch controls, a microphone, Bluetooth and micro USB connectivity and water resistantance up to a meter.
• The demand for earbuds is likely experiencing an initial spike with work-at-home and entertainment-in-place now the standard for many households due to the recent outbreak of COVID-19 virus. This new demand will not diminish consumer expectations for advanced functionality, so device manufacturers still need to prioritize app development and software enhancements to enhance the user experience.

Key Market TrendsGrowing Penetration of Smartphones and Consumer Demand for Latest Products is Expected to Increase The Growth

• In January 2019 Consumer Technology Association predicted that Unit shipments of smartphones are expected to grow one percent to 170.7 million. The increasing penetration of smartphones is expected to drive the demand for earbuds market due to the increased demand for integration of these devices with smartphones for enhanced features.
• The leading vendors are integrating active voice assistance features like Siri, Google Now, and Alexa to offer the convenience of use and ease of handling for the consumers. Smart earbuds also offer advanced features that allow the consumers to monitor body vitals such as heart rate and calories burnt during a workout session, and convenience during a workout. These products are specifically designed and marketed for athletes and health-conscious individuals in the global earbuds market.
• Moreover, the increasing trend of making the smartphones slimmer and thinner has resulted in the manufacturers removing the headphones jack. This is propelling the consumers to adopt earbuds, in turn, boosting the market growth over the forecast period.
• The vendors are heavily implementing various IPX certifications to make their earbuds sweat and water resistant. This certification helps companies increase their brand reliability and attract more consumers in the global earbuds market. IPX7 means that the product can withstand being submerged into one meter of water for up to 30 minutes and hence increasing the device portability in many places such as gyms along with smartphones for connectivity. Factors such as these also act as a driving factor for the growth of the market.

Asia-Pacific is Expected to Register Fastest Growth

• Asia-Pacific is expected to witness the highest growth in the earbuds market during the forecast period. The growing electronics industry coupled with a rapid rise in the disposable income in the region is driving the smart wearable market.
• Further, the expansion of consumer electronics manufacturing capacities, especially in the South Central region of China, coupled with rising exports to neighboring countries in Southeast Asia is expected to boost the growth of the earbuds market.
• The penetration by foreign players in the region providing premium products that are technologically advanced, and provide better experience has fueled the demand for the premium headphones and earphones. This is expected to drive market growth over the forecast period.
• The high price tag associated with these products vary across geography because of the manufacturing brand and features provided in the products. The multinational brands are even higher priced when they sell overseas due to the custom and excise duties depending on the country they are selling. For example, Apple sells its AirPods for $159 in North America and $203, $217, and $218 in China, Germany, and the UK respectively.

Competitive Landscape

The competitive rivalry in the earbuds market remains high owing to the presence of some key vendors such as Bose, Sennheiser amongst others as the market remains consolidated with. The market players are moving towards providing technologically integrated products through extensive investments in the research and development that have enabled them to gain a competitive advantage over other players in the market. Also the companies through strategic partnerships and mergers and acquisitions the players have been able to gain greater footprint in the market.

• October 2019 - Apple announced the launch of AirPods Pro, an exciting addition to the AirPods family that features Active Noise Cancellation and superior, immersive sound, in an all-new lightweight, in-ear design.
• July 2019 - Sony launched WF-1000XM3 Truly Wireless Earphones with active noise cancellation, up to 32-Hour battery life and wear detection features that can play or pause the music automatically when the earphones are put on or taken off respectively.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Apple Inc.(Beats Electronics)
Alphabet Inc.
Bragi
Samsung Electronics Co., Ltd.
Nuheara
Sennheiser Electronic GmbH & Co. KG (Sennheiser)
Koss Corporation
Bose Corporation
JBL
Huawei Technologies Co., Ltd.
Panasonic Corporation
Bang & Olufson
Motorola Inc.
LG Electronics Inc.
Yamaha Corporation
Philips
Jabra Corporation

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