Headphones Market Size, Share, Analysis & Forecast [2031]

Report Description

Headphones Market Outlook:

The Global Headphones Market was valued at USD 34,226.8 Million in 2021 and is expected to reach USD 68.375.0 Million in 2031, expanding at a CAGR of 8.1% during the forecast period 2023-2031. Online webinar refers to a type of digital tools that enables individuals and organizations to participate in webinars, which are online seminars or presentations conducted over the internet.

Headphones are types of audio devices that are worn over or inside the ears to listen to audio privately. Headphones are defined as electroacoustic transducers that convert electrical signals into sound waves, delivering audio directly into the listener's ears. They consist of small speakers, known as drivers, positioned close to the ears and connected to an audio source, such as a smartphone, computer, or audio player, through a wired or wireless connection.

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The drivers generate sound by converting electrical signals from the audio source into vibrations, which are then transmitted through the headphone's diaphragm and into the listener's ears. Headphones are used for a variety of purposes, including listening to music, watching movies, gaming, and making phone calls.

Headphones Market Dynamics

Market Driver: Growing Music Industry

The growth of the music industry is driving the headphones market. Many individuals enjoy listening to songs of different genres, including rock, hip-hop, pop, and electronic dance music (EDM) using headphones, which fueled the market. Increasing number of viewers and listeners of music videos and audio are contributing to the market growth. According to IFPI’s global music report, the global music industry grew by 7.4% in 2020 as compared to 2019.

Furthermore, in 2018, the global recording industry generated USD 19.1 billion in revenue, of which 58.9% came from digital channels, 32.9% from paid streaming, and the remaining 1.9% came from A&R marketing. Various companies are initiating various strategic developments, which are contributing to the growth of the headphones market.F

For instance, in 2022, Sony expanded its service in India by offering its series of wireless headphones in India by launching WH-1000XM5 noise-canceling headphones. The new headphones offer various features such as enhanced ANC with eight microphones and other features.

Market Driver: Increasing Adoption of Headphones in Gaming

Increased use of wireless headphones among gamers in emerging markets, such as China and India, is expected to fuel the demand for headphones and create massive revenue opportunities for market players. Furthermore, the development of immersive and hyper-realistic games, as well as the invention of gear to enable those games, has increased the sales of gaming gadgets.

Several gaming companies are developing ultra-realistic-looking games. Increasing customer awareness of modern innovations in gaming devices such as efficient cooling systems and faster processors is leading to increased customer interest in gaming, which is beneficial to the headphones market. All these factors increase the demand for headphones in the market, thus boosting the market.

Market Restraints: Availability Of Counterfeit Products

Counterfeit goods are becoming popular in emerging countries such as China and India. Most counterfeit products are sold at significantly lower prices than original products. This price discrepancy attracts price-sensitive consumers who opt for counterfeit options instead of purchasing original products, which results in the declining revenue of manufacturers of original products.

Furthermore, the proliferation of counterfeit products creates confusion in the market, making it challenging for consumers to differentiate between original and counterfeit products, which is expected to impact the sales of headphones in the market. All such factors hamper the growth of the headphones market.

Several governments are taking initiatives to reduce the availability of counterfeit products by seizing the products. For instance, in 2021, about 360,000 counterfeit wireless headphones worth USD 62.2 million were seized in the first nine months of the US government's fiscal year, which begins in October, according to previously disclosed data from U.S. Customs and Border Protection. This has surpassed the 295,000 pairs of counterfeit wireless headphones worth $61.7 million that were seized in 2020.

Market Opportunities: Demand for Noise-Cancellation Features

Active noise cancellation (ANC) has made tremendous strides in the headphone market. It enables headphones to actively cancel out ambient noise, creating an immersive and focused audio experience. Recent advancements in ANC technology have resulted in improved noise reduction capabilities, allowing users to enjoy their music or podcasts in noisy environments.

Furthermore, the growing demand for noise cancellation in headphones creates opportunities for manufacturers to innovate, differentiate their products, and expand their market presence.

Headphones manufacturers meet the evolving needs of consumers seeking enhanced audio experiences by investing in noise-cancelling technology and improving the user experience. For instance, in March 2020, JBL launched the JBL CLUB Headphone, which has advanced noise canceling and smart assistant technologies. All such developments increase the demand for headphones in the market and create lucrative opportunities for the market players.

Market Opportunities: Rising Disposable Income

Growing disposable income among consumers is resulting in an increase in the standard of living of people as well as spending power for social needs other than fundamental needs. According to the Organization for Economic Co-operation and Development (OECD), GDP per capita increased by 5.1% annually in the OECD region in 2021 as compared to the previous year, exceeding real household income per capita by 1.7%. Household income per capita increased in Italy, France, the UK, China, and the US in 2021.

Disposable income in the US increased from USD 14,410.4 billion in 2018 to USD 16,115.7 billion in 2021. The headphones market is driven by rising disposable income of consumers. Consumers are willing to invest in headphones that deliver high sound quality, comfort, and convenience, which creates several opportunities for manufacturers. Thus, manufacturers are able to target a large customer base and offer premium features and advanced technology.

Scope of the Headphones Market Report

The report on the Global Headphones market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Headphone Market Segmental Outlook

The Global Headphones Market is segmented on the basis of Product, Type, Connectivity, Application, Noise Cancellation, Distribution Channel, and regions.

In terms of product, the Headphones market is segmented into, On-Ear, Over-Ear, In-Ear. The In-Ear segment is projected to hold a substantial share of the market in 2022, due to robust growth in connected devices, that are already creating system vulnerabilities.

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Based on Connectivity, the Headphones market is segmented into Wired, Wireless, True Wireless. The Wired segment is projected to hold a substantial share of the market in 2022.

Regional Outlook

Based on regions, the Headphones market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period.

The region is expected to continue its dominance in the coming years, owing to the increasing adoption of cloud technologies, the rising number of data centers, and the proliferation of IoT devices. Moreover, growing economic development is projected to drive the market during the forecast period.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Headphones market

• Historical, Current and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Headphones Market Performance