Consumers have gone back to buying audio products with the likes of JB Hi-Fi benefiting from the surge in demand that has seen total global audio shipments climb over 10%.
The big winners are Apple with their Beats headphones and Samsung who own Harman and JBL.
According to the latest Canalys research, the smart personal audio market (including TWS, wireless earphones and wireless headphones) rebounded strongly in Q2 2024, with notable gains across several segments.
Total shipments reached 106 million units, up 10.6% year-on-year, the highest number of second-quarter shipments in history.
Both TWS and wireless headphones were growth drivers, reaching 77 million and 15 million units, respectively.
Apple (including Beats) was the leading vendor during the period with 18 million units shipped and a 17.1% market share. Samsung (including Harman subsidiaries) came in second with 8.1 million shipments and a 7.6% market share.
Sony was the fifth brand by shipments with 4 million units and a 3.7% market share behind Chinese brand Xiaomi.
According to Canalys research, the smart personal audio market (including TWS, wireless earphones and wireless headphones) rebounded strongly in Q2 2024, with notable gains across several segments with TWS continuing to lead the global smart personal audio market in Q2 2024, with a commanding 72.6% market share with 12.6% annual growth.
Despite the traditional TWS segment’s slowdown, leading vendors have adeptly navigated the challenge by strategically pricing models under US$50.
For the first time, the sub-US$50 price segment accounted for more than 50% of the market this quarter.
“Vendors are actively looking to add novelty features to stand out from the intensifying competition with homogenous characteristics and price war,” said Cynthia Chen, Research Manager at Canalys.
“Huawei’s Lipstick 2, designed as a lipstick, features premium materials and fashionable attributes to appeal to female audiences. JBL has added a display in earphone cases to enable users to check the notification directly to reduce phone dependence and enhance interaction with the earphone which is positioned as a stand-alone device” she said.
“On the other hand, a few players are looking to boost AI use cases by integrating AI assistant features into their latest launches, such as Nothing. Although it is still early to see if the AI features will drive usage and user experience, these emerging vendors hope to win over consumer mindshare by leveraging the AI trend.” She added.
Consumers are embracing open-form factor and bone conduction claims Canalys.
“Open-form factor emerges as a bright growth spot this quarter for both TWS and wireless earphone categories,” claims Chen.
“High technical barriers have constrained the open-form factor; however vendors have managed to bring it out from the niche segment by offering consumers unique user experiences and affordable price points, which have been well-received because of the form factor’s adaptability to various scenarios”.
Brands such as Shokz are intensifying their focus on sports integration, while brands such as JBL are moving to clip-on designs to enhance comfort and style.
Shokz now holds over 10% of the market share in the open-form factor segment.
However, this share is set to fall as other brands deliver new form factors claim analysts.
“Vendors will need to focus on product quality and feature improvement beyond the form factor innovation.” they said.
Wireless headphones market rebounds, balancing high-end and cost-effective options.
“Emerging players’ market expansion is fuelling the segment’s recovery in Q2,” said Jack Leathem, Research Analyst at Canalys.
He claims new players are making substantial inroads into the international market with their US$50 to US$100 mass-market products.
He claims that established audio vendors such as Bose and Sony dominate the high-end (US$350 and above) market. Having pulled out of low-end competition.
Instead, they have refocused their strategies back to the high-end segment to differentiate themselves with the delivery of premium sound quality.
The market leadership in audio fidelity will help these vendors protect their high-end user bases from emerging players, allowing them to build sustainable revenue streams.”
Chen said, “The audio market is becoming increasingly crowded as major vendors seek to expand their presence,” claimed Chen.
“Technological advancements have enabled branded vendors to offer high-quality, high-performance products at competitive prices, displacing white-label products” she added.
“Additionally, the shift from wired to wireless headphones, driven by improved connectivity and shifting consumer preferences, has establishes a strong base for wireless audio growth”.
