The global wireless earphone market size was valued at USD 2.17 billion in 2020 and is expected to reach USD 3.21 billion by 2027 grow at a compound annual growth rate (CAGR) of 5.8% from 2020 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, rising demand for fashionable and attractive designs is expected to boost 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 start-ups and well-established companies, such as Samsung Electronics, Bose Corporation, and Sony Corporation, are focusing on developing innovative products. This is further expected to boost 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.
In terms of revenue, music and entertainment dominated the market for wireless earphones with a share of 33.8% in 2020. 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.
In terms of revenue, offline distribution channels dominated the market for wireless earphones with a share of 53.4% in 2020. 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.
The wireless earphones market is segmented on the basis of application, distribution channel and region. By application the market is divided into Gaming, Fitness, Virtual Reality, and Music & Entertainment. By distribution channel the market is divided into Online, Offline.
North America dominated the market for wireless earphones with a share of 30.5% in 2020. This is attributed to the region’s highest internet penetration rate of 89.1% at the global level is expected to remain a favourable 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 7.1% 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 market players are: Apple Inc.; Bose Corporation; Sony Corporation; Samsung; JVC; OnePlus; Jaybird; Beats; Shure Inc.; Sennheiser electronic GmbH & Co. KG.
In addition, rising demand for fashionable and attractive designs is expected to boost 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 start-ups and well-established companies, such as Samsung Electronics, Bose Corporation, and Sony Corporation, are focusing on developing innovative products. This is further expected to boost 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.
In terms of revenue, music and entertainment dominated the market for wireless earphones with a share of 33.8% in 2020. 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.
In terms of revenue, offline distribution channels dominated the market for wireless earphones with a share of 53.4% in 2020. 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.
The wireless earphones market is segmented on the basis of application, distribution channel and region. By application the market is divided into Gaming, Fitness, Virtual Reality, and Music & Entertainment. By distribution channel the market is divided into Online, Offline.
North America dominated the market for wireless earphones with a share of 30.5% in 2020. This is attributed to the region’s highest internet penetration rate of 89.1% at the global level is expected to remain a favourable 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 7.1% 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 market players are: Apple Inc.; Bose Corporation; Sony Corporation; Samsung; JVC; OnePlus; Jaybird; Beats; Shure Inc.; Sennheiser electronic GmbH & Co. KG.
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