TWS Models Propping Up Headphone Category: Futuresource
Earbuds and headphones were among the most widely discounted items in Black Friday promotions with Beats by Dr. Dre over-ear advertised at discounts of $200 at Best Buy and elsewhere. Beats by Dr. Dre Studio Buds true wireless stereo (TWS)…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
noise-canceling headphones were $60 off to $89, while Sony TWS WF-1000XM4s earbuds were marked down by over $100 to $178 at Best Buy. The highly competitive market is experiencing a growth lag due to a demand slowdown in developed markets and COVID-19 lockdowns in China, said a November Futuresource report. The TWS segment is holding its own, though, and holiday season promotions could be short-lived, according to Futuresource data showing the TWS category posted 14% year-on-year shipment (123 million) and revenue ($16.9 billion) growth in first-half 2022. “Even though the headphones market is only displaying marginal volume growth, we expect big things from true wireless,” said analyst Saran Mathivanan. The research firm estimates the category will finish 2022 with 13% growth in shipments, cannibalizing other form factors and raising the market’s average selling price. Earbuds are “firmly entrenched within consumer lifestyles across the globe, and we expect overall demand to remain positive throughout our forecast period,” said the analyst. The global headphone market, projected at $55 billion this year, will taper in 2023-2024 due to lower consumer spending on discretionary products, said Mathivanan, but a market recovery is likely at the end of 2024.