Headset Market Size, Share & Trends Analysis Report By Type (In-ear, Over-ear), By Price Band, By Connectivity (Wired, Wireless), By Application (Personal, Commercial), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global headset market size was estimated at USD 44,482.0 million in 2021. It is expected to expand at a compounded annual growth rate (CAGR) of 31.9% from 2022 to 2030, according to a study conducted by Grand View Research, Inc. The rise in disposable income levels among developing countries such as India and China has increased consumer spending power, which is expected to drive market growth.

Additionally, changing consumer preferences have led to the large-scale adoption of more advanced products equipped with sophisticated features such as voice command, noise cancellation, multiple pairing, and more. Similarly, the market has recently witnessed a growing demand for specially designed gaming products with advanced features such as in-game communication and virtual surround sound to provide immersive surround audio to aid and amplify the gaming experience. 

The development of active noise cancellation techniques, which provide consumers with a better listening experience, is expected to drive market growth. By delivering greater noise attenuation, noise-canceling headphones offer excellent hearing protection against constant noise levels. The technology protects against both low-frequency droning sound and high levels of external noise. 

For instance, Sony Group Corporation introduced Sony WH-1000XM4, a wireless headphone that offers an active noise cancellation feature using dual noise sensor technology. The dual noise sensor technology enables it to catch ambient noise and sends it to the dependable HD noise-canceling processor.

Increasing availability of counterfeit products may challenge the growth of the global market, during the forecast period. The growing demand for reasonably priced and low-cost items, along with a lack of understanding, has fueled the production of low-cost counterfeit products, which is likely to significantly hamper the market in emerging economies during the forecast period. Consumers with a lack of awareness about the brand and quality usually opt for products offering similar features at a considerably low price. 

The increased use of these counterfeit devices, owing to their competitive product and price offerings in emerging markets like China, India, Indonesia, and Taiwan, is expected to hamper market growth during the forecast period. According to OECD reports published in 2019, the global quantity of counterfeit products has expanded dramatically, accounting for approximately 3.3% of global trade. 

Several manufacturers are engaged in offering fitness tracking applications in the market, influencing the growth favorably. The increasing adoption of headsets during the workout is primarily expected to propel the market demand during the coming years. Sports enthusiasts and gym-goers prefer hassle-free, wireless products to avoid tangling, which, in turn, leads to workout distractions. Manufacturers target fitness-conscious customers by offering innovative features such as fitness monitoring & tracking in devices. For example, the BioSport Audio in-ear headset powered by Intel provides health monitoring functions that require no special chargers or batteries. BioSport relies on built-in sensors and unique software to operate as a pedometer, heart monitor, and other biometrics. 

Earphones & headphones are an integral part of day-to-day individual activities and have adoption across several verticals. One such area of adoption is the corporate world, which has witnessed a seismic shift in work culture during the pandemic. The lockdown situation has enforced several corporate employees to adopt a work-from-home model. This shift has compelled office conferences, meetings, and training sessions to be attended from home and has boosted the sales of high-quality earphones. 

End users such as small offices, home offices, and enterprises along with contact center employees, and remote workers are looking for features like long-distance wireless connectivity, Active Noise Cancellation (ANC), and good microphone performance.

Type Insights

In 2021, the in-ear segment dominated the market. Miniaturization of the in-ear segment and increased comfort drive demand for the segment. The rising demand for the smartphone market is expected to fuel the in-ear headset market segment. Technological improvements have led to the development of lighter and more compact items, making them more compatible with the devices like tablets and smartphones. Furthermore, advantages such as the great quality of listening provided by in-ear devices have led customers to use in-ear earbuds to enhance their overall experience. 

The over-ear segment is estimated to grow at a CAGR of 6.4% throughout the forecast period. This growth can be attributed to the technological developments resulting in the incorporation of several features such as noise cancellation, voice assistant integration, TruNote audio technologies, and infrared wireless technology. There is a rise in demand for the over-ear segment in Asia Pacific countries. Growing demand for the mobile communications and high-end headset market is expected to incite growth in the region. Availability of the low-cost products from regional manufacturers is impacting the local market favorably.

Price Band Insights

Devices within the pricing range of USD 151-350 contribute the largest share of the market. Highly sophisticated features such as sensitivity, frequency response, improved design, and demand for the value-added features provided by NFMI (near-field magnetic induction communication) such as noise reduction, and 3D audio technology are the factors anticipated to fuel demand for the products priced greater than USD151.

Considering superior sound experience, quality, and brand recognition, high-priced headsets are chosen over low-priced headsets. For instance, the customers prefer established brands such as Apple Inc., and Audeze LLC as they are well-known brands for providing premium quality products. 

The segment is expected to grow at a CAGR of 34.5% from 2022 to 2030. The USD 51-150 segment has gained popularity considering that several products of top brands fall under this category. A device within the pricing range of USD 51-150 is predicted to witness high demand as several small brands introduce new products with advanced features at affordable prices. Meanwhile, the COVID-19 effect is also expected to contribute to the growth of this segment as individual income has been affected and they are anticipated to seek medium-priced products.

Connectivity Insights

Wireless headsets market is experiencing significant growth owing to adoption of the technological development such as Artificial Intelligence, Augmented Reality, and SKAA technology. The adoption of bone conduction technology for developing ear-less, smart headsets is further propelling demand for the wireless segment in the headset market. The bone conduction technology enables people with deafness to hear, and lets swimmers listen to music underwater. Improved accessibility and distinct product offerings are the factors driving demand for the wireless headset market.

The wired segment accounted for a high-volume share in 2021 and is expected to exhibit remarkable growth during the forecast period. This wired segment is anticipated to reach a significant market share by 2030, with growth at a CAGR of 8.8% from 2022 to 2030. The wired segment includes headsets that are connected through cables and are classified into technologies such as active noise canceling (ANC), and noise isolation, designed for a gaming console, stereo audio, tangle-resistant cable, and among others. The wired segment market is likely to maintain its market share in the coming year because wired headsets are less expensive, have less latency, last longer, and offer superior audio quality.

Application Insights

The personal segment is expected to grow significantly at a CAGR of 34.0% from 2022 to 2030. The market is expected to grow in the forecasted year owing to the rise in technological innovation and advancements. The growing proliferation of headsets for gaming, fitness, sports, casual and virtual reality is expected to fuel demand for the personal application segment. Furthermore, personal headset demand is increasing significantly due to the work-from-home mandates. The shift has compelled office conferences, meetings, and training sessions to be attended from home and has boosted the sales of the personal headset market. The increased usage of OTT platforms and rising leisurely activities during the lockdown have also positively impacted the personal market.

Due to the rising adoption of headsets in media and entertainment and BPO enterprises, the commercial application market is experiencing rapid growth. Furthermore, demand for commercial headsets in the telecommunication and military sectors is being driven by the rise in the adoption of unified communication modes to conduct training sessions, meetings, video conferences, and webinars with the help of UC technology to reduce costs. Growing demand for improved communications in commercial applications, particularly in call centers and enterprises, is predicted to significantly contribute to industry growth.

Regional Insights

Asia Pacific is estimated to be the key market during the forecast period, owing to the increasing consumer disposable income, especially in developing countries such as India and China. As per the industry experts, the market in Asia Pacific is price sensitive and therefore major players face stiff competition from local brands in countries like India and China. For instance, brands like boAt, Shenzhen Dongxue Technology Co., Ltd., and others, have introduced wireless headsets, offering multiple features at lower prices.

The headset market is expected to grow significantly in North America during the forecasted year at a CAGR of 26.1%. The increase in proliferation of the smartphones is driving the market in North America. Due to the growing presence of well-known enterprises and rising acceptance of new technical products, the headset market is expected to grow in the forecasted period. Furthermore, the availability of wireless devices at affordable pricing is expected to expand the wireless segment across the region. In addition, the European region is likely to witness steady growth, owing to the continuous adoption of premium products in these regions.

Key Companies & Market Share Insights

The companies are focused on expanding their headset market position through expansion strategies such as mergers & acquisitions, and collaborations. For instance, Harman International Industries has a collaboration with JBL that allows the company to integrate HARMAN's audio engineers with the product design team. This partnership bolstered the BL Quantum Rang gaming headsets. These strategies are also assisting headset market participants in expanding regionally and entering a new market. Some of the prominent players in the global headset market include:

• Alclair Audio, Inc.

• Bose Corporation,

• JVC Kenwood Corporation

• Apple, Inc

• Harman International Industries

• Incorporated

• Grado Labs

• Shure Incorporated

• Koninklijke Philips N.V. (Philips)

• Logitech, Inc., (Logitech International SA.)

• Panasonic Corporation

• Plantronics, Inc.

• Sennheiser electronic GmbH & Co. KG (Sennheiser).

• Sony Corporation

• Shenzhen Cannice Technology Co., Ltd.

• Skull candy, Inc.

• Ultimate Ears, and LLC (Logitech)

• Zebronics India Pvt., Ltd. 

Headset Market Report Scope

Global Headset Market Segmentation

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global headset market based on the type, price band type, connectivity, application, and region:

• Type Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2030)

  • In-ear

  • Over-ear

• Price Band Type Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2030)

  • Below USD 50

  • USD 51-150

  • USD 151-350

  • Over USD 351

• Connectivity Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2030)

  • Wired

  • Wireless

• Application Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2030)

  • Personal

  • Commercial

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa