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Global Headphone Revenue Reaches $9.4 Billion on Demand for Value-Added Features

Declining manufacturing costs helped contribute to 12 percent growth in headphone revenue last year, despite only a 4 percent rise in average retail price, said a Futuresource Consulting report. Lower manufacturing costs mean vendors are finding “increasing value” in building…

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in more of the “sophisticated features” that are in heavy demand, thereby driving higher sales and more revenue, Futuresource said. Worldwide shipments of headphones grew by 8.5 percent in 2014 to 310 million units, generating $9.4 billion revenue, it said. Despite increasing fragmentation in the headphone market, Sony, Philips, and JVC continue to hold the top three spots, said Futuresource, with 31 percent of shipments worldwide. Apple EarPods have gained ground to hold a 5 percent share globally, and Beats by Dre headphones have grown in volume globally by leveraging Apple distribution networks, it said. Microphones have become a common feature across all types of headphones, growing by 58 percent last year as mobile device ownership grows, said Futuresource. Headphones with microphones were 36 percent of worldwide headphone shipments, and in-ear headphones were 60 percent of shipments, it said. The Bluetooth category continues to expand and is forecast to account for 21 percent of global headphone sales by 2018, said the researcher. Sport headphones are another growth category, led by yurbuds, Jaybird, Jabra and Parrot.