The Global Earphone and Headphone Market, By Application (Personal, Sports, Gaming, Corporate and Media & Entertainment), By Distribution Channel (Multi-brand Store (Organized and Independent), Single Brand Store and Online Store), By Product Type (Wired (Premium, Mid and Low), Wireless (Premium, Mid and Low) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 27,535.5 Million by 2027, exhibiting a CAGR of 7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Headphones electroacoustic transducers that convert an electrical signal into a corresponding sound. Over the years, headphones have evolved from wired headphones to wireless and from earphones to earbuds to earpieces. Moreover, advanced technologies such as noise-cancellation and hands-free use. Headphones connect to a single source of the audio amplifier including radio, mobile phones, portable media player, CD player, video game console or electronic musical instrument. It is either connected with a cord or wireless technology such as Bluetooth, FM radio or DECT.
The global Automotive Interior Materials Market was accounted for US$ 15,985.4 Mn in terms of value in 2019 and 378.7 Mn units in terms of volume is expected to grow at CAGR of 7.0% for the period 2020-2027.
Rising urban population is expected to boost the global earphone and headphone market growth over the forecast period
Constantly expanding urban population worldwide, which is characterized by upper urban class and high net growth individuals have led to increased demand for advanced headphones and earphones, especially premium ones. Furthermore, rapid migration from rural to urban areas, typically in countries such as Indonesia and China is expected to boost the demand for earphones and headphones in the near future. According to the United Nations (UN) report, in 2014, around 54% of the global population lived in urban areas and is expected to reach 66% by 2050. Hence, these factors are expected to support growth of the global earphone and headphone market in the near future.
Expanding the product portfolio of market players can present significant growth opportunities
Mobile phone and headphone manufacturers in the market are focused on enhancing their existing product portfolio, in order to offer a variety of novel products and gain a competitive edge in the market. For instance, in 2015, Motorola, a U.S.-based mobile manufacturer, introduced two new wireless headphones along with the launch of new Moto X and Moto G mobile phones. Furthermore, in 2014, Razor, a U.S.-based company of gaming products, launched a new line of headphones, in order to target music professionals.
Lack of standardization is expected to restrict growth of the global earphone and headphone market during the forecast period
Currently, there exists a lack of standardization in technology and components used for manufacturing headphones and earphones, especially by medium- and small-size companies. Inadequate standards in the market lead to high product and price differentiation. These factors are expected to hamper the global earphone and headphone market growth in the near future.
Rising internet penetration has led to the emergence of the e-commerce sector that offers easy and convenient sales channels for a variety of products, which includes consumer electronics. As a result of this, it has boosted the sales of earphones and headphones via this channel. Moreover, increasing the adoption of smartphones and e-commerce apps is another factor leading to higher online sales of earphones and headphones. Consumers are inclined towards purchasing these products from online stores due to various online discounts offered by e-retailers.
Sports and gaming
Headphones are a crucial part of gaming and sports sector where high-quality and noise-canceling headphones are required. Manufacturers are focused on research and development activities and product innovation, in order to introduce novel products and expand their consumer base. Furthermore, companies are focused on entering into mergers and acquisitions in order to cater to various high-growth segments such as sports. For instance, in 2014, Harman International Industries acquired Yurbuds LLC, a St. Louis-based company, to expand its global footprint in sports headphone and earphone segment.
Premium range earphones and headphones
Consumers are increasingly preferring premium price earphones and headphones, especially in developed regions such as North America and Western Europe. This is owing to the high disposable income and the presence of major players in the region. Furthermore, the sale of premium price earphones and headphones particularly wireless earphones and headphones in developing regions such as APEJ and Eastern Europe are expected to increase in the near future as they offer superior user experience over wired earphones and headphones.
Key companies involved in the global earphone and headphone market are Harman International Industries, Inc. (AKG), Beats (Apple Inc.), Plantronics Pty. Limited, Audio-Technica Corporation, Sennheiser Electronic GmbH & Co. KG, Bose Corporation, Sony Corporation, Philips Electronics Ltd., JVC Corporation, and GN Netcom (Jabra).