Wireless Headphone Market Expected to Reach $156.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Wireless Headphone Market," The wireless headphone market size was valued at $42.7 billion in 2021, and is estimated to reach $156.5 billion by 2031, growing at a CAGR of 14.4% from 2022 to 2031.

Headphones are basically a pair of small loudspeakers that are worn on or around the head over a user's ears. Headphones are electroacoustic transducers, which convert electrical signals into a corresponding sound. They are also known as ear speakers and earphones.  “Around the ear” and “over the ear” headphones have a band over the top of the head which holds the speakers in place. Another type is earbuds that consist of individual units that plug into the user's ear canal. A third type is bone conduction headphones, which are typically wrapped around the back of the head and rest in front of the ear canal, leaving the ear canal open. The sale of electronic infotainment devices such as tablets, mobile phones, laptops, vehicle infotainment device, digital music systems, digital TV is increasing at a high rate, and headphones are major accessories for these devices. Therefore, increase in sales of electronic infotainment devices is expected to drive the Wireless Headphone Market Growth.

Nowadays, the inclination toward fitness and sports is increasing, various manufacturers have developed headphones that can be used while carrying out sports activities. This segment is further expected to drive the market growth.  While considering the product type segment, the “In Ear” type of products contribute to the major share of the market. Furthermore, increase in disposable income and continuous innovation in technology boost the growth of the earphones and headphones market. The wireless headphone market demand is highly competitive and continuous innovation in technology is observed to satisfy the customers’ demands. However, excess use of headphones has adverse effects on the hearing ability of consumers, which limits their adoption.

Some of the major factors that are expected to drive the Wireless Headphone Market Growth include increase in penetration of infotainment devices, rapid technological advancement, growth in need of mobility services, and rise in disposable income. However, presence of counterfeit products and increase in manufacturing of low-cost fraudulent products restrain the market growth. Furthermore, increase in need for convenience by the consumers provide lucrative growth opportunities for the earphones and headphones market expansion.

However, the usage of headphones brings numerous side effects caused due to radio frequency radiation emitted via wireless headphones. It is a particular kind of nonionizing (or low-level) EMF (RFR). This form of radiation was identified by the International Agency for Research on Cancer in 2011 as potentially harmful to humans. This classification was made in light of research linking cell phone use to an elevated risk of glioma, a specific type of brain cancer. Furthermore, according to research published in 2018 by the National Toxicology Program (NTP) Trusted Source, animals exposed to high RFR levels, such as those seen in 2G and 3G mobile phones, developed cancer.

Manufacturers in the wireless headphone industry are continuously investing in research & development (R&D) to expand their product portfolios and market presence. The need for cost-effective procedures for manufacturing wireless headphones will aid in minimizing the ultimate cost of the product and fuel the market's expansion. In addition to this, the manufacturers are continuously looking to add new features to the product to offer a new experience to their customers. For instance, 1more, a Chinese wireless headphone company has introduced fast charging with wind noise reduction and pass-through mode in their headphones. The features are expected to aid the user especially, for the gamers who require to stay up to practice for long hours and require to maintain their focus for the complete tenure of their practice. With the expansion of the range of new technological development, the wireless headphone market trends is expected to grow at an increasing pace in the upcoming years. 

The wireless headphone market size is segmented into price point, technology, headphone type, distribution channel, category, application, device application, end user, functionality, end user generation, ingress protection, and region. On the basis of price point the market is subdivided into economic, premium and ultra-premium. On the basis of technology the market is classified into Bluetooth, infrared (IR), radiofrequency (RF), kleer. On the basis of headphone type the market is subdivided into over-ear, on-ear, and in-ear. Based on distribution channel the market is further divided into supermarket/hypermarket, independent retail stores, e-commerce and others. Based on category the wireless headphone market opportunity is bifurcated into branded and private label. On the basis of application the market is classified into entertainment, gaming, fitness, virtual reality and others. On the basis of device application the market is categorized into smartphones, laptops,  desktop and others. On the basis of end user the wireless headphone market analysis is divided into commercial, consumer and others. Based on functionality the wireless headphone industry is bifurcated into with microphone and without microphone. By end user generation the wireless headphone market Share is classified as Gen Z, Millennials, Gen X, and Boomers. Based on ingress protection the wireless headphone market opportunity is divided into protection from solid objects, protection from water, and combined. Region-wise, it is analysed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia, Sweden, Netherlands, Denmark, Poland and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Thailand, Singapore, Indonesia, New Zealand, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Middle East, Saudi Arabia, Egypt, Nigeria and rest of LAMEA).

Key findings of the study

• On the basis of price point, economic segment dominated the global market in 2021 with a wireless headphone market share of more than 45%. However, ultra-premium segment is attributed to be the fastest growing segment during the wireless headphone market analysis.
• On the basis of technology, Bluetooth technology dominated the global wireless headphone market trends in 2021. However, kleer technology is likely to be the fastest growing segment with the CAGR of 16.8% during the wireless headphone market forecast period.  
• On the basis of headphone type, on-ear segment dominated the global market in the year 2021 with the market share of more than 50%. However, in-ear headphones are likely to be the fastest growing segment during the wireless headphone market forecast period with the CAGR of 16.0%.
• Based on distribution channel, independent retail stores dominated the global market with the market share of around 45% in the year 2021 and is likely to continue remain dominant during the forecast period. However, others is likely to be the fastest growing segment during the forecast period with the CAGR of 15.6%.
• Based on category, branded segment dominated the global market with the market share of more than 70% in the year 2021. However, private label segment is likely to be the fastest growing segment during the forecast period with the CAGR of 15.1%.
• On the basis of application, entertainment segment dominated the global market with the market share of more than 40% in the year 2021. However, fitness segment is likely to remain fastest growing segment during the forecast period with the CAGR of 16.1%.
• On the basis of device application, smart phones dominated the global market with the market share of more than 40%. However, others segment is likely to be the fastest growing segment during the forecast period with the CAGR of 15.5%.
• On the basis of end user, consumer segment dominated the global market in the year 2021 with the market share of more than 75%. However, others segment is likely to be the fastest growing segment with the CAGR of 16.5%
• By functionality, with microphone segment dominated the global market with the market share of more than 60% in the year 2021.
• By end user generation, Gen Z is the dominated generation with the market share of more than 40% in the year 2021. However, Gen X is likely to be the fastest growing segment during the forecast period with the CAGR of 15.3%.
• Based on ingress protection, protection from water segment dominated the global market in the year 2021 with the major market share. However, combined segment is likely to be the fastest growing segment during the forecast period with the CAGR of 15.9%.
• Region-wise, North America was the highest revenue contributor and is estimated to reach $46,2 billion by 2031, with a CAGR of 13.7%. However, Asia-Pacific is likely to be the fastest growing region during the forecast period.

The players operating in the global wireless headphones market have adopted various developmental strategies to increase their market share, gain profitability, and remain competitive in the market. The key players operating in the wireless headphones market include- Apple, Inc, ASUSTeK Computers Inc., Imagine Marketing Limited., Bose Corporation, Dell Inc., Dolby Laboratories, Inc., Demant Group, Hifiman Corporation, HP Inc, Logitech, Mivi, Lenovo, BBK Electronics Corp. Ltd, Philips NV., Samsung, Skullcandy, Sony, TCL, Xiomi,