Boult Audio Archives - Counterpoint

Global TWS Market Dominated by Entry-level Segment in H1 2023, Premium Segment Cools

The entry-level (<$50) segment continued to grow as TWS adoption rose across emerging markets.
Premium brands such as Apple, Samsung and Sony marked a slowdown due to a lack of new models.
For full year 2023, we forecast TWS sales to grow 2% in volume but decline 3% in value due to a mix shift towards low-cost TWS sales across emerging markets.

The global TWS market’s unit sales slipped only 2% YoY in H1 2023, according to the latest data from Counterpoint’s TWS Hearables Market Tracker, despite low demand for IT devices amid macroeconomic headwinds and consumer weakness. Surprisingly, the TWS market seemed somewhat immune to inflationary headwinds, especially the <$50 entry-level segment where sales increased 15% YoY in H1 2023. This mitigated the sales decline in higher-tier price segments as TWS demand polarized towards the entry and premium categories.

Some of these ups and downs within the price segments were driven by regional demand dynamics. In H1 2023, demand contracted in mature markets like North America and Europe where the TWS penetration has reached a mature level. In contrast, underpenetrated emerging markets like India, the Middle East and Africa, and Latin America registered robust growth during the period. China, one of the world’s largest TWS markets, showed signs of recovery as the COVID-19-related lockdowns eased in the latter half of 2022. The uptick in H1 2023 was also driven by the 618 e-commerce festival and promotions in China. The period also witnessed the rise of low-cost TWS brands. Chinese entry-level brand ZhengQibing saw sales unit growth of 141% YoY in H1 2023 as it focused on the sub-$20 models with attractive features and CMF designs.

Global TWS Market Share by Price Band, H1 2023 vs H1 2022 (Retail Price-based)

Source: Counterpoint’s TWS Hearables Market Tracker, Q2 2023

Additionally, the rising demand for TWS in big underpenetrated markets such as India, along with the Chinese market’s recovery helped the <$50 price category grow further. India’s Q2 2023 TWS shipments rose 34% YoY, capturing a 15% global share.

In India, local TWS brands such as boAt, Boult Audio and Noise reported strong double-digit YoY growth in Q2 2023driven by a broader portfolio of entry-level models. boAt successfully leveraged online shopping events like Amazon Prime Day, Flipkart Big Saving Days, and other online promotions to fulfill the demand for new affordable models. Boult Audio, with a keen focus on affordability, strategically launched a series of new models priced below $25, effectively drawing in customers. Noise‘s major model series, the Noise VS102 and VS404, were well received due to their affordable price, satisfactory sound quality, and long battery life. Additionally, they offered an up to 80% discount on their audio products during the Noise Anniversary Sales in 2023. The enhanced performance of models in the <$25 (retail price) segment also played a significant role in boosting sales.

Specifications of Major Entry-level TWS Models

Sources: Official Websites

Global TWS Market Growth by Price Band, H1 2023 vs H1 2022 (Retail Price-based)

Source: Counterpoint’s TWS Hearables Market Tracker, Q2.2023

Meanwhile, major global players such as Apple, Samsung and Sony saw market share declines and slower growth in the absence of new models. These premium-focused brands are bringing about incremental improvements in features compared to the low-cost models of challenger brands that are trying to innovate on design, audio features, latency, battery life, and more. Samsung also saw a noticeable decline in sales share on the high-tier price range with its aggressive pricing and promotions on the Galaxy Buds 2, due to a mix-shift in sales volumes centered around the $50-$100 price segment. Overall, the absence of new model releases and the lack of new features failed to drive replacement demand which resulted in a decrease in sales in the high- and premium-tier segments in H1 2023. The upcoming AirPods 2 with the new H2 chip and support for lossless audio, optimized for the upcoming Apple Vision Pro XR headset, could drive some uptick during the holiday season in Q4 2023.

Looking forward, the global TWS market’s sales volume is set to grow by 2% YoY in 2023, but revenue will decrease by 3% YoY. We expect the TWS market to keep growing till 2026 and the attach rate to new smartphone sales to reach 36% as the average lifespan of a TWS device before replacement reaches 1.5-1.8 years.

India Neckband Shipments Declined 9% YoY in 2022

boAt led the market with a 27% share, while OnePlus and realme took the second and third spots respectively.
Indian brands took a 62% share in 2022, grabbing seven spots in the top-10 list.
The entry-level price band (<INR 1,000 or around <$13) is becoming a sweet spot, taking almost one-third share in 2022.
OnePlus took the top spot in Q4 2022 for the very first time with a 20.2% share.
OnePlus’ Bullets Wireless Z2 Edition was the best-selling device in 2022 with a 14% share in the overall neckband market.
Sony led the mid-segment (INR 3,000-INR 5,000) in 2022 with a 37% share.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – March 22, 2023

India’s neckband market shipments declined 9%YoY in 2022, according to the latest research from Counterpoint’s IoT Service. This decline was primarily due to seasonality and rising competition between hearable types. Indian consumers have started preferring Truly Wireless Stereo (TWS) devices over neckbands, especially due to their sleek design, newly added features and affordable prices. However, the demand for neckbands is still strong in the Indian market as many consumers use neckbands as a secondary device that is affordable, ideal for longer usage and suitable for applications like running, workout and travelling.

Commenting on the market trends, Senior Research Analyst Anshika Jain said, “Indian neckbands are expanding towards the low-price tier of <INR 1,000 (or around <$13), which reached its highest ever share of 32% in 2022, up from 20% in 2021. Many brands are focusing on this tier to acquire the wired earphone user base. Over 80 brands entered the neckband market in 2022, reflecting the growth potential of this market. In terms of distribution, online channels contributed nearly three-fourths of total shipments with Flipkart taking the lead followed by Amazon. boAt, OnePlus and Boult Audio were the top-selling brands in the online segment.”

Jain added, “In 2022, the homegrown brands captured seven spots in the list of top 10 brands with boAt taking the top spot. However, the contribution of local brands remained at 62% (showing a slight dip compared to 2021) as Chinese brand OnePlus started gaining prominence with its Bullets Wireless Z2 model. In fact, in Q4 2022, OnePlus became the top player in India’s neckband market for the very first time. Global brands took only a 3% share led by Sony, Samsung and JBL. Sony led the mid-segment (INR 3,000-INR 5,000) in 2022 with a 37% share.”

Talking about the local manufacturing scenario, Research Analyst Akshay RS said, “In 2022, domestic manufacturing contributed 13% of total shipments, up from just 2% in 2021. With boAt, Mivi and Boult Audio ramping up their local manufacturing capabilities, these brands together accounted for over 75% of the total domestic shipment volume in 2022. Noise, Gizmore, Portronics, Aroma, pTron and Wings also started offering locally produced neckbands in 2022.”

Source: India Hearables (Neckband) Shipments, Model Tracker, Q4 2022

Note: boAt’s share includes Tagg and Defy shares

Market summary for 2022

boAt maintained its lead with a 27% market share driven by its wide range of products in the budget segment, multiple celebrity endorsements and aggressive festive season promotions. The boAt Rockerz 255 Pro Plus was the second most popular neckband in the market and captured a 17% share in the brand’s portfolio. boAt took five spots in the top 10 best-selling neckbands.
OnePlus maintained its second spot with an 18% market share driven by the growing popularity of the Bullet Wireless Z2 model. Also, the Bullets Wireless Z2 model was the best-selling device in the market and contributed 14% share of the total neckband volume.
realme took the third spot in the top five neckband brands’ rankings with a 7% market share. The Buds Wireless 2 Neo drove the majority of its shipments followed by the Buds Wireless 2S. Strong channel presence, installed smartphone base and value-for-money offerings were the major factors that pushed its growth.
Boult Audio grabbed the fourth spot with a 5% share driven by its wider portfolio across price bands. The brand is picking up in the domestic manufacturing space. The Boult Audio Curve model was the brand’s bestseller, capturing a 31% share.
Ubon rose to the fifth spot with a 3% share. The brand focused on launching more devices in the affordable segment. Almost two-thirds of its volume was driven by online channels.

Source: India Hearables (Neckband) Shipments, Model Tracker, Q4 2022

Note: boAt’s share includes Tagg and Defy shares

Market summary for Q4 2022

India’s neckband shipments saw a 36% YoY decline in Q4 2022 due to the high volumes of inventory that were moved to the channels during the festive season and changing customer preferences.
OnePlus led India’s neckband market for the first time with a 20.2% share, while boAt captured the second spot with a 16% share. OnePlus’ Bullets Wireless Z2 was the best-selling neckband for the third consecutive quarter with a share of 20% in Q4 2022.
Boult Audio, Mivi and Aroma were the fastest-growing brands in Q4 2022. Domestic production and budget offerings took the brands to the top-five list.
The shipment volume of the <INR 1,000 price band (or around $13) grew 15% YoY in Q4 2022. Boult Audio drove the volume for this price band with an 18% share, followed by Aroma, Signature and boAt.
In Q4 2022, domestic manufacturing saw rapid growth, contributing one-fourth of the total shipments.
Noise, Zebronics, pTron and Signature were the other emerging brands in Q4 2022 that made a mark in the top-10 list.

According to a recent consumer study by Counterpoint, 15% of TWS users prefer to plan for other forms of wireless earphones, like neckbands, as their next purchase. India’s neckband market is approximately 1.3x of its TWS market. Going forward, competition can be expected between the neckband and TWS segments as some users prefer neckbands due to convenience during workouts. However, we will continue to see more innovation happening in the TWS category.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

India TWS Market Shipments up 85% YoY in 2022; Top 5 Spots Taken by Indian Players for First Time

Leading player boAt posted 89% YoY growth, contributing two-fifths of the total shipments.
For the first time, the top five spots in the India TWS market were captured by local brands.
Indian brands reached their highest ever share of 80%.
Domestic manufacturing captured a 30% shipment share in 2022, compared to just 2% in 2021.
The average selling price dropped by 20% YoY in 2022.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – February 21, 2023

India’s TWS market shipments registered 85% YoY growth in 2022, according to the latest research from Counterpoint’s IoT service. Increasing local manufacturing helped drive the shipments, apart from timely sales events, frequent affordable offerings, and entry of new players.

Commenting on TWS brands’ performance in 2022, Senior Research Analyst Anshika Jain said, “Four-fifths of the total market was captured by Indian brands, their highest-ever share. For the first time, the top five spots were taken by local brands, which captured two-thirds of the total TWS shipments in India. Moreover, the majority of the new entrants this year were local brands. Further, Mivi, with its entirely locally produced TWS portfolio, grew 544% YoY and grabbed a position in the top five for the first time.

Evidently, Chinese and global brands lost some of their share to the Indian players this year. Chinese brands captured a 13% share in 2022 driven by the good performance of OnePlus’ feature-rich devices Nord Buds and Nord Buds CE. realme and OPPO also supported the growth of Chinese brands. Global brands took an 8% share led by Apple, Samsung and JBL.”

Talking about the local production scenario, Associate Director Liz Lee said, “Domestic manufacturing saw rapid growth, contributing 30% of the total shipments in 2022, compared to just 2% in 2021. Key homegrown brands boAt, Mivi and pTron ramped up their local manufacturing capabilities to account for 73% of the domestic shipment volume in 2022. Other key players like Noise, Truke, Boult Audio, Wings, Gizmore and Play also manufactured made-in-India devices for the first time this year. Moreover, this increase in the shipment share of local production largely led to a drop in the ASP (average selling price) by 20% in 2022. More new launches in the low-price band (INR 1,001-INR 2,000 or around $13-$25) also contributed to the drop.”

Source: India Hearables (TWS) Shipments, Model Tracker, 2021 vs 2022

Market Summary for 2022

boAt took the lead for the third year in a row with 89% YoY growth driven by increased penetration in domestic manufacturing, multiple affordable launches, and aggressive promotions. It captured seven spots in the rankings for top-10 best-selling models. The Airdopes 131 remained the top-selling model for the second consecutive year with a 10% share of the total TWS market shipments.
Noise rose to the second spot with 2x YoY The brand focused on its VS series which caters to the <INR 2,000 (or $25) price band. It added many new devices to the series in this period. Moreover, it opened the year 2022 with its expansion towards local production. As a result, it became the third-largest brand to offer made-in-India TWS devices.
Boult Audio grabbed the third spot with a 7% share and 167% YoY growth driven by aggressive marketing strategies and multiple new feature-rich offerings below INR 2,000 (<$25). It also entered the domestic manufacturing space for the first time in 2022. The majority of its volume was driven by the INR 1,001-INR 2,000 (or around $13-$25) retail price band. The Airbass XPods was the best-seller in its entire TWS portfolio.
Mivi grew 544% YoY this year and took the fourth position in the rankings for top-five brands for the first time, driven by its full-fledged made-in-India TWS portfolio, a good number of launches and huge presence in the entry-level price band (<INR 1,000 or around <$13) and low-price band (INR 1,001-INR 2,000 or around $13-$25).
PTron again took the fifth spot with a 5% share of the total TWS shipments. In addition, it was the largest brand in the entry-level price band (<INR 1,000 or around <$13).

Source: India Hearables (TWS) Shipments, Model Tracker, Q4 2022

Market Summary for Q4 2022

India’s TWS shipments saw 44% YoY growth in Q4 2022 driven by festive season sales and promotions and growing local production.
boAt grew 3% YoY to mark its tenth consecutive quarter of lead in Q4 2022, while Boult Audio stood second for the first time with an 11% share.
The top five TWS brands in India were all local brands – boAt, Boult Audio, Mivi, Ptron and Noise. They accounted for two-thirds of the total shipments.
In Q4 2022, Indian brands captured a record 84% share driven by boAt, Boult Audio, Mivi, Ptron and Noise.
With a 4% share, the boAt Airdopes 131 remained the top model for the seventh consecutive quarter in Q4 2022.
The INR 1,001-INR 2,000 retail price band (or around $13-$25) continued to fuel the TWS demand in India during Q4 2022 with an increased share of 75% in the overall shipments. boAt mainly drove the volume for this price band with a 45% share, followed by Boult Audio, Mivi, Noise and Wings.
The premium segment (>INR 5,000 or around >$60) captured a 4% share this quarter, driven by Samsung followed by Apple and JBL.

Background

Analyst Contacts

Anshika Jain

Liz Lee

Anam Padha

Counterpoint Research
press(at)counterpointresearch.com

India TWS Shipments Double YoY in Q3 2022; Indian Brands Capture Record 79% Share

boAt grew 128% YoY to mark its nine successive quarters of lead, while Noise stood second for the fourth consecutive quarter.
OnePlus bounced back strongly in the top-five rankings with a 6% share in Q3 2022.
Almost four in five TWS shipped in India were from an Indian brand.
Domestic manufacturing saw a record 288% quarterly growth this year, contributing to 34% of the total shipments.
Online channel maintained 79% of the volume with Flipkart in the lead.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – November 17, 2022

India’s TWS (True Wireless Stereo earbuds) shipments doubled YoY in Q3 2022, according to the latest research from Counterpoint’s IoT Service. The growth was primarily driven by festive season inventory to meet the strong pent-up demand, multiple new launches, discount events and promotions.

Commenting on brand performance, Senior Research Analyst Anshika Jain said, “The top five TWS brands in India – boAt, Noise, Mivi, OnePlus and Boult Audio – accounted for almost 70% of the total shipments. OnePlus made a comeback in the top five driven by two recent launches – Nord Buds and Nord Buds CE – at an affordable price point. Indian brands showed the fastest YoY growth of 143% to reach their highest shipments ever in Q3 2022. Launching multiple devices according to customer needs, effective marketing tactics and aggressive participation in sales events have been their major growth drivers. Moreover, strong growth was observed in Q3 due to festive season sales and a focus on local manufacturing. People also use these devices for gifting purposes during festivals like Raksha Bandhan and for corporate gifts.”

On best-selling models, Jain said, “The top 10 TWS models captured 41% of the total TWS shipments. These models mostly catered to the low-mid price segment (INR 1,000-INR 3,000). Top player boAt captured seven spots in the top-10 best-selling model rankings. With a 9% share, the Airdopes 131 remained the top model for the sixth successive quarter. OnePlus took two spots with its recently launched models Nord Buds and Nord Buds CE grabbing a 2% share each. Noise took one spot with its best-performing buds VS102 model, which had a 3% share in Q3 2022.”

On distribution channels, Associate Research Director Liz Lee said, “It is still challenging for brands to strengthen their presence in offline channels, as a huge share of 79% still comes from the online market. In addition, the TWS online segment has a strong footprint on Flipkart, which has more than half of the total online shipment share. Key players Mivi and Boult Audio have recently stepped into the offline space and plan to go aggressive on their expansion offline. Online-centric brand Truke has also aimed to enter the offline market in the immediate quarter. We may witness brands existing in both online and offline marketplaces exploring and partnering with big retail chain companies to increase their offline presence.”

Source: India Hearables (TWS) Shipments, Model Tracker, Q3 2022

Summary

Dominant Indian brands lost a small share to Chinese and global brands in Q3 2022.

Indian brands grew 143% YoY in Q3 2022 driven by boAt, Noise, Mivi, Boult Audio and Ptron. All the new entrants in Q3 2022 were local brands, namely Mobatree, 5 Elements, Duffer and Lyne (a U&I sub-brand). Besides, Indian brands had high penetration in the low-price segment (<INR 2,000 or <$50), with a cumulative share of 95%.
Chinese brands saw an increased share of 13% in Q3 2022. OnePlus drove this growth by offering a feature-rich device, the Nord Buds CE, at the lowest price point in its entire TWS portfolio. The good performance of the Nord Buds model also contributed to its growth. realme and OPPO also offered multiple new advanced TWS devices that further supported the growth of Chinese brands.
Global brands, which mostly cater to the premium segment (>INR 5,000), strengthened their growth with Apple launching its much-awaited new model, the Airpods Pro (2^nd Gen). Global brands saw 91% QoQ and 9% YoY growth in Q3 2022, which was driven by Samsung, JBL and Apple.

Background

Analyst Contacts:

Anshika Jain

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

India TWS Shipments Increase 168% YoY in Q2 2022; Local Brands Capture Record Share at 81%

boAt continued to dominate with a 46% share, while Noise took the second spot for the third time in a row.
Mivi made it to the top five for the first time with a 6% share in Q2 2022.
Online channel penetration stood at 79%, with Flipkart capturing half of these shipments.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – September 1, 2022

India’s TWS (True Wireless earbuds) shipments delivered a strong quarter with 168% YoY growth and 62% QoQ growth in Q2 2022, according to the latest research from Counterpoint’s IoT Service. The increased penetration of the low-price band (₹1,000-₹2,000 or $25-$50), multiple discount offers and growing popularity due to convenience of use led to this huge jump in market demand.

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “India’s TWS market continues to show phenomenal growth due to the reasons like availability of low-priced new TWS devices, better features and functionalities like ANC, innovative designs, and low-latency mode for gaming. The market is expected to grow 47% in 2022 as new brands continue to arrive even as existing ones expand their channel presence. Besides, consumer demand is expected to rise during the festive period as people are also seeing TWS devices as a good option for gifting purposes.”

On local production, Jain added, “The share of domestic manufacturing stood at 16%, the highest ever. With boAt, Noise, Mivi and pTron ramping up their local manufacturing capabilities, these brands together accounted for 98% of the domestic shipment volume in Q2 2022. ‘Made in India’ has been taking the spotlight since the beginning of this year. But more brands started focusing on local manufacturing during this quarter. Gizmore and new entrant SWOTT also offered locally produced devices in Q2 2022. Further, we expect to see ‘Make in India’ devices from Truke and Portronics as they focus on localizing their manufacturing to maintain price competitiveness.”

Talking about the dominance of Indian brands, Associate Research Director Liz Lee said, “During Q2 2022, homegrown brands captured the top five brands rankings for the first time. These brands together took over 70% share and were quite aggressive in their marketing strategies, introducing new advanced alternatives at affordable prices along with discount schemes through various sales events. Besides, there has been a growing emphasis on roping in brand ambassadors to capture customer mind share. The top position was taken by boAt, followed by Noise and Boult Audio. Mivi entered the top five list for the very first time due to its focus on R&D and designing better quality products under the ‘Make in India’ scheme.”

Source: India Hearables (TWS) Shipments, Model Tracker, Q2 2022

Market summary for Q2 2022

boAt maintained its leadership with 236% YoY growth in Q2 2022. The substantial demand was driven by its new low-priced alternatives and big sales events like Amazon’s summer and mega music fest sales. The Airdopes 131 remained the bestseller model, contributing a 15% share to the overall TWS market shipments.
Noise maintained its second position for the third consecutive quarter with 190% YoY growth driven by its locally produced TWS earbuds. The brand again refreshed its low-priced VS series with the launch of the Noise Buds VS104 in Q2 2022. The Noise Buds VS102 was the brand’s most popular model, entering the top 10 models list for the quarter.
Boult Audio again took the third spot and reached a record high volume with 233% YoY During the quarter, it offered multiple new launches in the low-price segments (₹1,000-₹2,000 or $25-$50). The brand also participated in Amazon sales events to drive volumes. The Boult Audio Airbass X Pods grabbed a spot in the top 10 bestseller list, contributing 33% of the brand’s volume.
Mivi made it to the top five brand ranking for the very first time with more than 2X QoQ The Duopods F30 and Duopods M20 were its most popular devices.
PTron took the fifth spot with a 4% The brand actively participated in multiple sales events on different e-commerce platforms and offered two new launches at an entry-level price band (less than ₹1,000 or $13). The PTron Bassbuds Duo was its bestseller model, making it to the top 10 model rankings.

Other emerging brands in Q2 2022

OPPO saw 171% YoY growth driven by its frequent new launches. The brand launched the Enco buds Air 2 Pro in Q2 2022 in the mid-price segment. It was the second most popular model after the Enco Buds in the brand’s TWS offerings.
OnePlus maintained its position in the top 10 list. It released a new model Buds Pro in the mid-price segment in Q2 2022. The model is the least-priced TWS device in the brand’s portfolio.
Samsung took the first position in the premium segment driven by the popularity of its Galaxy Buds 2 and Galaxy Buds Pro models. The brand also offered discounts during Amazon’s summer sale.
Truke registered 75% YoY growth in Q2 2022. The brand offered two new alternatives at low price points with ENC technology. The Buds F1 model attained a record of selling 10,000 units on its launch day on Flipkart

Background

Analyst Contacts

Anshika Jain

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

Q1 2022: boAt Leads India Neckband Market Followed by OnePlus

boAt led the market with a 25.7% share, while OnePlus and realme took the second and third spots respectively.
The INR 1,000-INR 2,000 price band captured 70% share.
OnePlus’ Bullets Wireless Z Bass Edition was the best-selling device in Q1 2022, followed by the boAt Rokerz 255 series and realme Buds Wireless 2 Neo.
More than three-fourths of the total neckband models were sold online with Flipkart dominating the channels.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – May 27, 2022

India’s neckband market shipments declined 13% YoY in Q1 2022 but grew 34% YoY in 2021, according to the latest research from Counterpoint’s IoT Service. The market showed tremendous growth in 2021 primarily due to the user preference for neckbands over headphones for their stylish look, wireless design and long-duration usage. Consumers are also opting for neckbands as an alternative audio device. The decline in Q1 2022 is primarily due to the high inventory which was pushed into the channel in Q4 2021 ahead of the festive season.

Commenting on the competition, Senior Research Analyst Anshika Jain said, “Half of the total neckband market was taken over by the top three brands in Q1 2022. boAt captured the first position due to its significant presence in the lower price segment (INR 1,000-INR 2,000). The primary factor that has helped boAt to maintain its leadership position is its wide range of products in hearables, along with strong marketing efforts. OnePlus and realme captured the second and third positions with 14.9% and 9.6% market shares, respectively.

Source: India Hearables (Neckband) Shipments, Model Tracker, Q1 2022

Talking about the overall market, Jain said, “The popularity of neckband devices is increasing as users are upgrading from a wired ecosystem and also want an alternative hearable device. Like TWS, the India neckband market is dominated by local players, which captured around 58% share in Q1 2022. These players have focused on providing the emerging features at affordable prices, like voice assistance, gaming mode for low latency, gesture music controls and insta-charge technology. Besides, next-gen neckbands from top brands are coming up with increased total playback time, primarily focusing on the budget segment (INR 1,000-INR 2,000).”

Looking at the forecast, Research Director Tarun Pathak said, “India’s neckband market holds tremendous potential. We estimate that this market will continue to grow in double digits in the coming period. We have also seen the entry of new players in this segment, which is expected to drive volumes in the second half of 2022. Domestic manufacturing is also likely to pick up due to the increase in the customs duty for wireless hearable products. The current penetration of domestically made products stands at 5%.”

Market Summary

boAt shipments grew 4% YoY in Q1 2022. The brand had a wide range of products for the budget segment. The boAt Rockerz 255 Pro Plus was the best-selling model for the brand.
OnePlus maintained its second position driven by the success of the Bullets Wireless Z Bass Edition. The brand also introduced the Bullets Wireless Z2 model in the lower price tier in Q1 2022.
realme captured the third position with ~10% market share. The Buds Wireless 2 Neo was its best-selling model in Q1 2022.
Zebronics entered the Top 5 list for the first time thanks to its multiple budget-friendly neckband devices launched in the market. More than half of the total shipments for the brand were driven by just two models – Zeb-Lark and Zeb-Symphony.
Boult Audio registered 6x growth YoY in Q1 2022 with the Curve being the best-selling device for the brand. The brand has launched several affordable models on online as well as offline platforms.
Xiaomi maintained a position in the Top 10 list with the Redmi SonicBass being the major volume driver. Around 67% of its shipments came from the online channel.
Noise grew 8x QoQ due to the popularity of its Nerve and Flair models in the budget segment. The brand also launched the Noise Combat model in Q1 2022. It has a gaming mode.
Other emerging brands in the market include OPPO, Ptron, Hitage, Ubon and Dizo.

According to a recent consumer study by Counterpoint, 15% of TWS users prefer to plan for other forms of wireless earphones, like neckbands, as their next purchase. India’s neckband market is approximately 1.3x of TWS market. Going forward, competition can be expected between the neckband and TWS segments as some users are preferring neckbands because of convenience during workouts. However, we will continue to see more innovation happening in the TWS category.

Background:

Analyst Contacts:

Anshika Jain

anshika@counterpointresearch.com

Tarun Pathak

tarun@counterpointresearch.com

Counterpoint Research

press(at)counterpointresearch.com

India TWS Shipments Reach Record 8 mn in Q3 2021; boAt Continues to Dominate while Apple Bounces Back

boAt set the record of being the leader for the fifth consecutive quarter with 171% YoY growth.
The top five brands reached their highest ever shipments in a single quarter.
Apple led the premium segment (>INR 5,000) with a 63% share while Nothing managed to take the third spot in the segment in the first quarter of its launch.
Local brands continued to record the highest penetration with a 63% share.
The average selling price (ASP) was down 22% YoY.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – November 2, 2021

India’s TWS market posted 55% YoY growth in Q3 2021 to reach the highest shipments ever at around 8 million, according to the latest research from Counterpoint’s IoT service. Brands pushed high amounts of inventory into the retail channels ahead of the festive season. Along with this, new entrants, discount offers, sales events and brands expanding into the low-price segments with feature-rich TWS offerings were the major success factors for the TWS growth in India during the quarter.

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “The Indian TWS market witnessed highest ever shipments in a single quarter in Q3 2021 driven by the strong festive planning, new launches and multiple sales events on major e-commerce platforms as well as brands’ own websites. We also saw the maximum number of new launches in Q3 2021 with a major emphasis on the low- to mid-price segments (less than INR 2,999). In this quarter, brands like realme and 1MORE followed the partner brand/sub-brand strategy with the launch of Dizo and Omthing respectively to expand their reach and enhance competitiveness.”

“In terms of features, there was an increased emphasis on Active Noise Cancellation (ANC) and gaming. Key players such as Truke and Ptron came up with their first ever gaming TWS earbuds. Besides, prominent brands introduced various new models in the premium segment as well for tech enthusiasts. For instance, the OnePlus Buds Pro, Samsung Galaxy Buds 2, Nothing Ear 1 and JBL Pro Plus were presented as new alternatives, which further increased the ASP of the premium segment by 20% QoQ, apart from Apple’s huge shipments contribution,” she added.

Talking about domestic manufacturing, Research Associate Anam Padha said, “Domestic manufacturing is gaining more significance as more brands continue to partner ODMs to bring made-in-India devices and enhance their production capabilities. Noise partnered with Optiemus, promising to offer multiple locally made devices in the coming quarters. Similarly, realme announced a partnership with Khy Electronics. Another Indian brand, Ambrane, set up a unit to locally manufacture audio devices. Ptron also elevated the progress of its domestic manufacturing capabilities this quarter and expects to double its TWS revenue by next year.”

“With domestic manufacturing on the rise, the quarter saw boAt offering its first made-in-India TWS model Airdopes 101 while Ptron launched its second locally produced TWS model Bassbuds Ultima, equipped with ANC,” she added.

Source: India Hearables (TWS) Shipments by Model Tracker, Q3 2021

Market Summary:

boAt captured a 35.8% share in the overall India TWS market in Q3 2021. This also represents its highest shipments volume since its inception. Apart from its strong integrated marketing strategy and keeping up with the trends of multiple launches and value-for-money offerings, it also actively participated in multiple sales events, like the much-awaited Amazon Great Freedom Sale and Amazon Prime Day Sale. It even hosted a ‘boAthead Days’ sales event on its e-brand store. Above all, its model Airdopes 131 was the bestseller for the second time and reached 1 million units for the first time.
realme rose to the second spot with an 8.1% share driven by the success of its mid-range ANC device Buds Air 2 and latest release Buds Q2 Neo in the low-price segment. In addition, realme stood number one in the mid-price segment of INR 3,000-INR 4,999. The Chinese brand also hosted a ‘realme Fan Festival’ event on its e-commerce website to provide the latest devices at a more affordable price point.
Noise had a 7.7% share and moved one step up to grab the third spot driven by multiple offerings in the low-price segment. Like boAt, it also launched new devices during the Amazon Prime Day Sale and offered multiple discounts. It added newer TWS devices such as the Buds VS102, Buds VS103 and Buds VS303 to its low-range VS series during the quarter.
Apple saw record shipments, taking the fourth spot with a 7.6% share in the Indian TWS market. Its model Airpods (Gen 2) performed well this quarter. Inventory for the festive season, Apple Days sales event and Back to School program accelerated its growth. Moreover, additional inventory on account of Apple’s plan to bundle free Airpods with the iPhone 12 series in the fourth quarter helped the brand achieve 67% YoY growth.
Boult Audio, an Indian brand, took the fifth spot for the first time ever. It held a 5.3% share with 147% YoY growth. Its portfolio covers the entry-level to mid-range segments. It derived this substantial demand by not only offering multiple new launches at a low price point but also putting its models on discounts during Amazon’s Great Freedom Festival.

Other Emerging and Fastest-growing Brands in Q3 2021:

Dizo: Among the new entrants in Q3 2021, Dizo was the fastest growing brand. It introduced four new models in the TWS market within the first quarter of its launch. The major highlight of the brand was its introductory pricing and focus on features like ANC and ‘transparency’ mode at an affordable price point.
Nothing: Nothing broke into the top three brands in the premium TWS segment in its debut quarter by capturing a 7% share in the segment. Competitive pricing and differentiated design helped the brand gain good mindshare among consumers.
Truke: Truke was another fast-growing brand, with its shipments tripling YoY. The online-centric brand plays in the entry-level and low-price segments. Truke also launched its first ever gaming series TWS earbuds in Q3 2021.
OPPO grew 63% YoY and had its TWS products spread across all price tiers. Its latest release in the low-price band, the Enco Buds, drove decent volumes for the brand.
OnePlus added one more SKU to its TWS portfolio. However, the OnePlus Buds Pro mainly caters to the premium segment. OnePlus also offered discounts on its existing models during the Amazon Freedom Sale and at Amazon Rakhi Store.
Samsung also launched a new model, the Galaxy Buds 2, and pushed its sales by offering it free with the purchase of new Samsung phones Galaxy Z Flip3 and Z Fold3. Its existing models also performed well, which helped the brand take the second spot in the premium segment (>INR 5,000).

Background

Analyst Contacts:

Anshika Jain

Anam Padha

Counterpoint Research
press(at)counterpointresearch.com

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Insights Tag: Boult Audio