The global smart headphones market is anticipated to witness a significant growth over the forecast period owing to advanced features offered by them, including noise cancellation, water resistance, and high-definition (HD) sound format. Rising popularity of wireless devices coupled with music provided by them is expected to be a principal factor fueling the market growth over the forecast period.
Light-weight devices matched with exceptional audio solutions are expected to sustain market growth over the forecast period. Unique innovations such as laser technology, wherein the wires light up with the rhythm of music and heartbeat are projected to foresee significant penetration in the wired smart headphone product segment over the forecast period. Increasing purchasing power coupled with rising consumer preference will drive demand over the forecast period.
Various features including detachable cords, fitness monitoring, and video recorder in these headphones will offer excellent opportunities for expansion. Furthermore, incorporating facilities that enable date exchange over short distances employing radio transmissions will boost the demand further over the next eight years.
Rising health concerns coupled with growing acceptance of the smart headphones in the sports segment is projected to promote industry growth over the forecast period. Surging sales of tablets and smart phones is further expected to increase demand for Bluetooth-based stereo headphones in the near future. However, high costs on account of advanced features in the product is projected to pose a threat to the market growth in the near future. In addition, the rise in similar products offering related features at a relatively lower cost is expected to hinder the product demand in the near future.
On the basis of the product, the industry is segmented into wired and wireless smart headphones. Wireless headphones accounted for over 80% of the revenue in 2015 and is expected to witness significant growth owing to convenience and ease. Increasing penetration of wireless headphones, especially in the gaming and entertainment sector, is expected to boost the segment growth over the next eight years. The wired headphones product segment is anticipated to foresee a steady growth over the forecast period, owing to the significant advantages offered by them such as minimized costs & lower power consumption coupled with improved accessibility and connectivity.
North America accounted for over 40% of the overall revenue in 2015 and is anticipated to show a healthy growth in light of rising adoption of technology by consumers and manufacturers. Advanced technology penetration in the U.S. is predicted to drive the product sales. Prominent players including Bose, Beats, and Skullcandy have transformed the regional market with the production of high-end products.
Asia Pacific is expected to witness strong growth in light of significant penetration of wearable electronics in the emerging economies including China, India, Malaysia, South Korea, Thailand and Vietnam. Moreover, rising spending capabilities of consumers on fancy electronic accessories will impact the demand positively. Abundant low-cost sensors and various connectivity elements used in headphones are anticipated to drive improvement over the forecast period.
Europe is expected to show steady growth in various countries including UK and Germany on account of growing electronics sector in the region. Companies operating in the market have been focusing on manufacturing products which are easy to use and possess better design.
Prominent players are trying to obtain a competitive lead by product offerings and price. A wide range of headphone manufacturers is organized in the backward integration order to achieve a reliable and stable supply of elements which is estimated to end up in higher profit margins. Distinguished companies competing in the market are LG, Bragi, Sennheiser, Valencell, Samsung, Sony, ChipSip, Huawei and Cosinuss. Significant investments in the research & development departments by the manufacturers to develop innovative technologies are expected to provide a competitive advantage to the organizations.
Research Support Specialist, USA