Global Earphones & Headphones Market - Trends, COVID-19 impact and Growth Forecasts to 2029

The global Earphones & Headphones market was valued at US$44,983 million in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 12.6% between 2022 and 2029. The growing consumer preference for an enhanced audio experience, flourishing music industry, along with rising mobile technology, and internet penetration, are the primary factors driving the market.

AgileIntel’s global Earphones & Headphones market study is a 166 pages report containing in-depth analysis on historical and forecasted spending patterns in the sector. The study offers granular value data from a global, regional, data type, industry, and end-user perspective.

The base year is 2021 for the study with historical data between 2018 and 2021. The data forecast has been provided for the years between 2022 and 2029.

Figure 1: Global Earphones & Headphones Market during 2018-2029 in US$ million

Key insights from the Global Earphones and Headphones report

Insights by Product Type:

The earphones and headphones market, as the name suggests, is classified into earphones and headphones based on the product type.

The earphones dominated the market, registering around 53% of the global revenue share in 2021. The comfort while listening to music, low cost, and compact size are some of the factors propelling the growth of the earphones market in recent years. Advancements and innovations in technology have resulted in the development of sophisticated noise cancellation features, which have further propelled the earphones market. Additionally, the lightweight design and portability of earphones make them a preferred choice for fitness and sports enthusiasts.

Furthermore, the bulky size and high cost of headphones acted as a deterrent to the growth of the headphones market in the past. However, technological advancements such as active noise cancellation (ANC) and rich bass signature are making them an ideal choice among audiophiles. The large-sized ear cups enable manufacturers to equip the headphones with dynamic and electrostatic sound drivers that provide enhanced and clear sound quality. Moreover, industry leaders such as Bose, Sony, Sennheiser, and Skullcandy.com are offering foldable headphones, chic leather ear cup cushions, etc., which is expected to drive the segment growth during the forecast period.

Figure 2: Global Earphones & Headphones Market by Product Type in 2021

Insights on Technology:

The earphones and headphones market is classified into two types: wired and wireless, based on the technology.

The wireless segment dominated the earphones and headphones market registering around 85% of the global revenue share in 2021. Technological advancements in Bluetooth connectivity of wireless devices and the introduction of wireless earbuds are driving the demand for wireless earphones and headphones. Moreover, the introduction of smart features like voice assistance, gesture recognition, fitness tracking, and play and pause of music is likely to increase the adoption of wireless earphones and headphones during the forecast period. Technological developments in wireless products category such as SKAA, bluetooth, artificial intelligence, augmented reality (AR), and Wi-Fi connectivity hardware is anticipated to escalate the demand.

However, the demand for wired earphones and headphones is expected to continue due to their low cost, zero latency, and better audio quality.

Figure 3: Global Earphones & Headphones Market by Technology in 2021

Insights on Application:

The earphones and headphones market has its applications in segments such as fitness and sports, gaming, virtual reality, and music and entertainment.

The music and entertainment segment dominated the market, registering around 42% of the global revenue share in 2021. Music over portable devices and music over the internet while working, commuting, working out, and everyday activities has shifted consumer preference for listening to music. Additionally, user-friendly features, enhanced controls, added sound effects, enhanced bass, and balancing options to adjust according to one’s choice is positively impacting the earphones and headphones market.

Furthermore, the virtual reality (VR) and fitness and sports application segment are anticipated to witness significant growth during the forecast period. The rising adoption of VR technology in the military and automotive sectors, medical training, and education is driving the market growth. Likewise, companies such as Bose, Jabra, Sony, Samsung Electronics, etc., have introduced fitness trackers and heart rate monitoring systems embedded in the earphones, which allow fitness enthusiasts 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. For instance, in September 2020, Bose launched three new sunglass frames named Tempo, Tenor, and Soprano, with premium headphone functionality built explicitly for outdoor workouts.

Additionally, the surge in demand for gaming consoles is expected to boost the product demand during the forecast period.

Figure 4: Global Earphones & Headphones Market by Application in 2021

Insights on Regional Growth:

Asia Pacific dominated the market, capturing around 33% of the global revenue share in 2021, mainly due to the growth of tablets, smartphones, and other multimedia devices such as iPod or MP3 players. Moreover, key industry players are investing significantly in the region due to the emergence of low-cost technology and the availability of cheap labor.

Meanwhile, North America held the second largest market share in 2021, registering a revenue share of around US$11,033 million, followed by Europe, which accounted for US$9,025million of the global revenue share. The well-established market and high technological advancements in these regions are driving the market growth in these regions. Continuous innovation and product development are further boosting the market positively. Additionally, the presence of major industry players such as Apple, Bose, GN Store Nord, Harman International Industries, and Sennheiser, among others, is expected to drive the market across North America and Europe.

 Figure 5: Global Earphones & Headphones Market by Region in 2021

Insights on Key Markets:

The U.S. Earphones & Headphones market was valued at US$8,838million in 2021, capturing 19.6% of the global market share, mainly driven by the advancements in the product category and the presence of Apple, Alclair Audio, and Bose.

Meanwhile, China’s Earphones & Headphones market was pegged at US$5,633million in 2021, mainly due to the flourishing electronics industry and its applications in consumer electronics, IT & telecom industries, and other application areas boosting the market growth during the forecast period.

Figure 6: Global Earphones & Headphones Market by Key Countries in 2021

Market dynamics

Trends

• Recent technological advancements have resulted in the development of lightweight earphones, headphones and wireless earbuds, which are expected to impact market growth favorably over the forecast period. The incorporation of several wireless technologies such as Wi-Fi, Bluetooth, SKAA, and Artificial Intelligence (AI), Augmented Reality (AR) are projected to propel the wireless segment demand over the next few years. The use of AI and AR in earphones and headphones has allowed manufacturers to innovate and introduce several advanced features to their products. Several brands in the market have introduced features like noise cancellation, gesture recognition, and adaptive hearing in their products, which are based on artificial intelligence & augmented reality technology. 

Drivers

• The rising penetration of mobile devices is fueling the sales of earphones and headphones. The proliferation of smartphones and tablets has led to music lovers spending more of their time as well as money on accessories such as earphones & headphones. Along with the escalating ownership of mobile technology, customers are buying headphones and earphones to receive improved quality audio. Earphones & headphones are primarily used as complementary accessories to smartphones, tablets, music players, laptops, etc., and the continued popularity of these devices in several emerging markets is anticipated to be a key factor driving sales.

Opportunities

• The growing use of earphones and headphones in the healthcare industry is expected to provide immense growth opportunities for the market players. Some wireless earphones are equipped with smart features that track footsteps and possess a heart rate sensor. Apple and Samsung are the key industry players who have made inroads in introducing health monitoring technology in earphones. For instance, Apple has a health monitoring feature installed across all its smart devices, including the AirPods, which can monitor the health data of a person. This data is stored in the Bluetooth-connected iPhone or Apple Inc.’s smartwatch in the form of ResearchKit. Medical professionals can retrieve the data to examine the health condition of the individual when required. Such scientific breakthroughs in the field of healthcare present an opportunity for the earphone and headphone manufacturers to add health-related features to their products and increase their sales.

 Challenges

• The growing availability of counterfeit products offering similar features to the original ones may hinder market growth in the coming years. Consumers usually opt for products offering similar features at a considerably low price, which may further impede the earphones and headphones market growth. There is a pool of suppliers with copyrights selling fake products registered with companies. The majority of counterfeit products fall into categories including consumer electronics, watches, cosmetics, designer garments and bags, and clothes. The presence of a large unorganized market in Asia, especially in developing countries such as China, India, Indonesia, and Taiwan, may hinder market growth significantly.

Impact of COVID-19

COVID-19 has contributed significantly to the growth of the Earphones & Headphones market. With offices being shut and a majority of the population working from home due to the government-imposed lockdowns and travel restrictions, the demand for earphones and headphones rose considerably amidst the pandemic. Additionally, the increasing usage of over-the-top (OTT) platforms and rising leisurely activities during the lockdown have further boosted the market growth.

Scope of the Global Earphones and Headphones report

This report provides analysis of the latest industry trends and estimates revenue growth at global, regional, and country levels. For this report, AgileIntel has segmented the global Earphones and Headphones market report based on product type, service type, and region:

Insights on Product Type (Revenue in US$million, 2018-2029)

• Earphones
• Headphones

Insights on Technology (Revenue in US$million, 2018-2029)

• Wired
• Wireless

Insights on Application (Revenue in US$million, 2018-2029)

• Fitness & Sports
• Gaming
• Virtual Reality
• Music & Entertainment

Insights on Regional market (Revenue in US$million, 2018-2029)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
• South America
  • Brazil
• Middle East and Africa