Headphones continue to exhibit strong consumer appeal, with forecasts from Futuresource Consulting pointing to worldwide volume growth of 0.4% in 2022, alongside a healthy 14% increase in value. In its new market report, the specialist research firm also reveals that global retail value will total $55 billion by the end of the year.
Looking back to the first half of 2022, Futuresource Consulting’s market tracker data shows that the market expanded by 2.5% in volume terms.
That’s lower than the growth seen in the previous two years, largely due to a slowdown in demand in developed markets and lockdowns in China. However, there are some bright spots shining through in the market. True wireless achieved 14% shipment and revenue growth year-on-year in H1 2022, culminating in 123 million units shipped and £14 billion in revenues over the six-month period.
TWS Keeps on Rising
“Even though the headphones market is only displaying marginal volume growth, we expect big things from true wireless,” says Saran Mathivanan, Senior Market Analyst, Futuresource Consulting. “Our numbers show that TWS shipments will grow by 13% this year, cannibalising other form factors and raising the market’s average selling price. It’s firmly entrenched within consumer lifestyles across the globe, and we expect overall demand to remain positive throughout our forecast period.”
Economic Uncertainties Coming into Play
“As uncertainties surrounding the cost of living crisis and recessional signals continue to rear their heads, we’re seeing consumer wallets tightening on non-essential products. Yet, unlike the dramatic shockwaves of the 2008 global recession, the current situation is more likely to result in a gradual erosion of disposable income.
“Although the global headphones market will slow in 2023 and 2024, we don’t expect it to shrink. A significant number of consumers will postpone their purchases or consider purchasing in a lower price range, and we should see some strong signs of market recovery from the end of 2024.”