Wireless Earphone Market 2020 and Forecast 2021-2027

                                          
Report Overview: Wireless Earphone Market


The global wireless earphone market size was valued at USD 1.06 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 4.7% from 2021 to 2027. The market is majorly driven by the widespread adoption of wireless earphones among consumers for improved audio quality, rising internet penetration, multitasking while listening to music, and advancement in mobile technology, resulting in the introduction of smart and user-friendly devices. In addition, technological advancements have led to the emergence of notch-less smartphones, which is expected to support the demand for wireless earphones. In addition, rising demand for fashionable and attractive designs is expected to increase product sales. Furthermore, advent of advanced technologies such as Active Noise Cancellation (ANC), which helps to eliminate background noises resulting in enhanced sound quality, is expected to result in the introduction of compatible wireless earphones, thereby contributing to the market growth.

The market for wireless earphones is anticipated to witness significant growth over the forecast period owing to technological advancements, such as Bluetooth and W-Fi. A number of startups and well-established companies, such as Samsung Electronics, Bose Corporation, and Sony Corporation, are focusing on developing innovative products. This is further expected to increase the demand for wireless earphones.

Technological innovations integrated in the manufacturing process are helping the brands to attract the large consumer base toward wireless earphones. Features such as noise cancellation and improved wireless connectivity are the major modifications incorporated in the products, thereby ramping up its adoption among the millennials. Furthermore, increasing adoption of smartphones and access to the internet are paving the way for manufacturers to become a potential entrant in this market.

Earphones transforming into multifunctional smart gadgets will boost the growth of the market. The consumers are increasingly using wireless earphones for various purposes, such as listening to music, audiobooks, stream digital podcasts, and receiving calls while keeping their hands free. Continuous change in consumer preferences, along with rapid technological advancements, is resulting in a surge in product miniaturization, which is fueling the traction of wireless earphones. The ability of these devices to focus on the comfort of the consumers and sound quality is one of the key factors encouraging high adoption of wireless earphones.

Application Insights: Wireless Earphone Market

In terms of revenue, music and entertainment lead the market for wireless earphones with a share of 33.8% in 2019. This is attributed to the widespread availability of Wi-Fi that enables consumers to listen to music or watch videos both indoor and outdoor. Moreover, the culture of listening to music while working or relaxing the mind has turned out to be a major factor driving the adoption of wireless earphones, especially among the millennials and teens. Moreover, consumer preference for enhanced audio experience can be associated with high demand for wireless earphones for this music and entertainment application.

Virtual reality is expected to witness the fastest growth over the forecast period 2021-2027. The rising need to enhance the VR experience is driving the demand for wireless earphones. For instance, in April 2016, Plantronics, Inc. collaborated with Sony Corporation to design headphones to enhance the VR experience with PlayStation VR. Moreover, the fitness application is anticipated to witness considerable growth in the future on account of rising usage of earphones in gyms and fitness centers.

Distribution Channel Insights: Wireless Earphone Market

In terms of revenue, offline distribution channels lead the market for wireless earphones with a share of 53.4% in 2019. This is attributed to the ability of the offline stores to exhibit a detailed analysis of the technology infused in the product to give a practical experience of the same. For instance, Marshall Amplification PLC, Xiaomi Corp., Apple Inc., and IKEA owned their retail outlets across all regions to provide easy accessibility and convenience to consumers.

Online channels are projected to register the highest CAGR of 5.9% over the forecast period owing to the growing population and rising adoption of smartphones. Technologically advanced countries such as the U.S. and U.K. play a prominent role in the segment growth. These channels help provide the latest devices. For instance, according to Internet World Stats, Asia accounted for 50.4% of internet users in the world in 2019. In addition, the rapidly growing e-commerce industry across the globe has enabled the customers to compare products offered by different companies, thereby augmenting online sales. E-commerce portals, such as Amazon, Alibaba, eBay, and Flipkart, offer the latest products at discounted prices, along with value-added services, including easy returns and Cash-On-Delivery (COD).

Regional Insights: Wireless Earphone Market

North America lead the market for wireless earphones with a share of 30.5% in 2019. This is attributed to the region’s highest internet penetration rate of 89.1% at the global level is expected to remain a favorable factor. High market visibility of smart Bluetooth speakers and smart home systems in the U.S. and Canada is projected to be a key trend. Furthermore, preference for Wi-Fi- and AI-enabled Bluetooth speakers plays a prominent role in the regional market growth.

Asia Pacific is expected to exhibit the fastest CAGR of 6.9% over the forecast period. Shifting preference toward technology-led premium products in emerging countries, such as India and China, is boosting the regional market growth. Rising sales of smart devices, such as smartphones, tablets, and phablets, in the region, are also expected to result in an increased demand for on-the-go music, which, in turn, will promote the usage of wireless earphones.

Key Companies & Market Share Insights: Wireless Earphone Market

The market for wireless earphones has been characterized by high competition with the presence of a large number of domestic and international players, thus resulting in a fragmented market. The global market has been witnessing the entrance of many new players offering varied products. The introduction of wireless earphones and significant adoption of the product among consumers have been intensifying the market competition. The established players are launching new products integrated with smart and intelligent features and abilities to sustain the competition in the market. Some of the top companies are also offering language translation and augmented hearing abilities to gain a larger share in the global market. Some of the prominent players in the global wireless earphone market are:

Key companies Profiled: Wireless Earphone Market Report

 	
Apple Inc.
 	
Bose Corporation
 	
 Sony Corporation
 	
Samsung
 	
JVC
 	
OnePlus
 	
Jaybird
 	
Beats
 	
Shure Inc.
 	
Sennheiser electronic GmbH & Co. KG.

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global wireless earphone market report on the basis of application, distribution channel, and region:

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Gaming
 	
Fitness
 	
Virtual Reality
 	
Music & Entertainment

Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

 	
Online
 	
Offline