Hearables 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 Neckband Shipments Grow 71% YoY in Q2 2022; boAt Continues to Lead

boAt led the market with a 36.4% share, while OnePlus and realme took the second and third spots respectively.
OPPO entered the top five for the first time.
The INR 1,000-INR 2,000 price band captured over two-thirds of the total market in Q2 2022.
OnePlus’ Bullets Wireless Z2 Edition was the best-selling device, followed by the boAt Rockerz 255 series and boAt Rockerz 235 v2.
More than three-fourths of the total neckband models were sold online with Flipkart capturing 52% share.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – September 12, 2022

India’s neckband market shipments grew 71% YoY and 52% QoQ in Q2 2022, according to the latest research from Counterpoint’s IoT Service. This growth was driven by a greater preference for these devices due to their look and comfort, and the availability of improved features at an affordable price.

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “India’s neckband market witnessed remarkable growth in Q2 2022 with most of the new launches coming from the affordable price segment (less than ₹2,000 or $25). Many of the top OEMs are focusing on the ₹1,000-₹2,000 (or $13-$25) price band by adding features like voice assistance, low latency for gaming, noise cancellation, and music control through gestures.”

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

“In Q2 2022, the local production increased over 2.5x QoQ with an 8% share in the total shipment volume, compared to 5% in Q1 2022. boAt manufactured more than two-thirds of the domestic volume in Q2 2022 followed by homegrown brands Mivi and Noise. In the second half of 2022, we expect more brands to introduce ‘Make in India’ devices,” Jain said.

Talking about product features, Research Director Tarun Pathak said, “The brands are pushing neckbands with long battery life. This feature is also attracting consumers as other wireless hearables have limited operating hours. The shipment share of the neckbands with 30+ hours of playtime increased to 40% in Q2 2022 from 17% in Q1 2022. In addition, some of the most demanded features like active noise cancellation, insta-charge and dual pairing technology are moving into lower price bands to attract cost-conscious customers.”

Market Summary

boAt topped the charts for the ninth consecutive quarter with a 36.4% shipment share driven by its value-for-money offerings like the Rockerz 255 series, Rockerz 235V2 and Rockerz 245V2.
OnePlus and realme were among the top five brands due to their new launches in the affordable segment and support from their smartphone user base. The OnePlus Bullets wireless Z2 was the best-selling neckband in Q2 2022, capturing more than 10% of the Indian neckband market. realme focused on offering popular features like ANC at an affordable price.
Ubon entered the top-five club for the first time in the Indian neckband market driven by multiple affordable neckbands.
OPPO grew 74% QoQ due to the popularity of its newly launched Enco M32 in the budget segment. Strong online and offline presence helped the brand enter the top five in Q2 2022.
Noise grew 50% QoQ with its popular models Nerve and Flair capturing half of its total portfolio.
Xiaomi maintained a position in the top 10 list with the Redmi SonicBass being its major volume driver.
Other emerging brands in the market included TECNO, Mivi, Ptron and Dizo.

Background

Analyst Contacts:

Anshika Jain

Tarun Pathak

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

Infographic: 2021 | Hearables (TWS)

TWS Market Share by Brand:

The global TWS hearables market sales in 2021 grew 24% YoY to 299.6 million units. Despite the COVID-19 pandemic impact throughout the year, new products entered the market with more features, like ANC (Active Noise Cancellation) and expanded playtime, at affordable prices.
TWS market leader Apple saw a slight increase of 5% YoY in its unit sales but its market share fell to 26%. Driven by its new models, Samsung saw a robust growth of 33% YoY to maintain its share of 7%.
Among other brands, Skullcandy and boAt showed noticeable growth, as they became key players in major regions like North America, Europe and India.

TWS Market Share by Region:

All regions except North America showed YoY growth in 2021. Asia-Pacific (excluding China) had the biggest share, surpassing North America for the first time.
Despite the COVID-19 pandemic impact throughout the year, most regions grew driven by new products with more features at affordable prices.
In particular, smartphone OEMs continued to focus on TWS products to expand their smart ecosystem, resulting in increased competition and sales in the market.

Read the full press release here.

Use the button below to download the high resolution PDF of the infographic:

Global TWS Shipments Grow 24% YoY to Reach 300 Million in 2021

The $50-$100 and $200+ price bands led the market growth in 2021.
Apple maintained its first position in 2021 but with a shrinking share.

Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – March 10, 2022

The global TWS hearables market shipments in 2021 grew 24% YoY in unit sales and 25% in terms of value, according to the latest research from Counterpoint’s TWS Hearables Market Tracker. The unit sales growth rate was slightly lower than the original forecast due to the COVID-19 pandemic impact throughout the year. However, unit sales increased to around 300 million as new products entered the market with more features, like ANC (Active Noise Cancellation) and expanded play time, at affordable prices. In particular, smartphone OEMs continued to focus on TWS products to expand their smart ecosystem, resulting in increased competition and sales in the market.

Note: Figures may not add up to 100% due to rounding

TWS market leader Apple saw a slight increase of 5% YoY in its unit sales but its market share fell to 25.6%. Although the AirPods 3 was released later than expected, the AirPods 2 and AirPods Pro maintained high sales based on promotions throughout the year. With the growing influence of Apple in the Chinese market, sales of old models have also increased significantly. The AirPods 3, primarily doing well in North America and Europe, led the entire TWS market in Q4 2021. Samsung saw a robust growth of 33% YoY with its new models Galaxy Buds Pro and Galaxy Buds 2, released in the first half and second half of the year respectively. Among other brands, Skullcandy and boAt showed noticeable growth, as they became key players in major regions like North America, Europe and India.

Note: Figures may not add up to 100% due to rounding

The growth in the $50-$100 and $200+ segments was notable. JBL and Xiaomi led the growth in the $50-$100 segment with their flagship models, while Skullcandy performed well with its models finding their way to the top 10 list of best-selling models. Apple drove the growth in the $200+ segment with a 75% share. Just like in 2020, the sub-$50 segment accounted for the largest share in 2021 with strong demand from emerging markets like India. Xiaomi recorded the highest sales in the sub-$50 segment, while boAt recorded the highest growth compared to the previous year.

Senior Analyst Liz Lee, who leads Counterpoint’s TWS hearables research, said, “The $50-$100 segment grew significantly YoY, as Xiaomi, which had focused on the sub-$50 segment, tried to expand its lineup to the $50-100 range. Further, the competition in the $50-$100 segment intensified, with smartphone OEMs like OPPO, OnePlus and realme pitted against emerging brands like Skullcandy, JLab and Nothing. All this competition resulted in new products offering good quality and more features at reasonable prices and pushing the market growth in 2021.”

Background

Analyst Contacts:

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

50% of Current TWS Users in India Likely to Upgrade Within a Year: Survey

About 60% of the current TWS users plan to stick to TWS for their next hearable purchase.
Battery life, sound clarity and call quality will be the key buying factors for the next TWS purchase.
The average selling price (ASP) of India’s TWS market is expected to rise in the near term.

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – December 21, 2021

Half of the current TWS users in India plan to buy their next TWS device in a year or less, according to a consumer survey conducted by Counterpoint Research’s Market Lens Service. Further, the ASP of India’s TWS market is expected to rise to the INR 5,000-INR 10,000 price band. About 60% of the current TWS users in India plan to stick to TWS for their next hearable purchase. Battery life, sound clarity and voice quality are the top three factors that will be considered by the respondents for their next TWS purchase.

Due to COVID-19, most parts of India experienced lockdowns or restrictions that led to extended work/study from home. As a result, a big portion of the respondents, irrespective of the type of occupation, ended up spending money on hearable devices, like TWS. The survey numbers indicate that the market will continue to get solid support even after the pandemic.

Commenting on the study’s overview, Research Analyst Arushi Chawla said, “The popularity of TWS is growing swiftly. According to Counterpoint’s India Hearables (TWS) Shipment Tracker, India saw TWS shipment of 7.9 million units in Q3 2021 with the country starting to recover from COVID-19 restrictions. Our latest consumer survey deep-dives to understand the past purchase journey of TWS along with future preferences toward hearables, particularly TWS. This study also reveals insights on the TWS design preference and outlook towards Active Noise Cancellation (ANC) and health and fitness features in a TWS device.”

Source: India TWS Consumer Study, Counterpoint Research

Being the leading TWS brand in India, boAt is also consumers’ most preferred brand for a future TWS purchase. About 60% of the current TWS users prefer boAt for their next TWS purchase. boAt is followed by JBL, Samsung, OnePlus and Apple. boAt’s popularity continues to grow – from 28% of the respondents currently using boAt TWS earbuds to 58% of the respondents preferring it as their next purchase. JBL’s TWS devices also appear to be climbing up the ladder in market share – from less than 10% of respondents using JBL currently to more than 40% preferring it for the next purchase.

Chawla added, “There are a diverse set of players in both TWS and smartphone markets. With fierce competition in maturing segments like smartphones, emerging segments like hearables, especially TWS, open fresh opportunities for new players as well as smartphone brands looking to expand their portfolios and strengthen their ecosystems.”

Discussing future consumer preferences, Senior Analyst Pavel Naiya said, “TWS, despite being a newer technology in India, has a bigger list of market players and hence more options for the consumers. As a result, the market share is spread across many players. However, boAt continues to be the top player. boAt TWS is most preferred for its sound clarity, followed by battery life. Price always plays a key role in finalizing a purchase, especially in a segment that holds a lot of scope to expand and innovate. The INR 5,000 and above price band currently contributes 27% share to the TWS market. But it will have a stronger grip in future as about 40% of the respondents are planning to purchase their next device from the same price band.”

Methodology

The study was conducted in India using an online survey panel of a heterogeneous group of TWS users. A sample of 1,027 respondents was collected using the quota-sampling methodology for better representation of the universe as per the current TWS brand share in the market. We expect the results to have a statistical precision of +/- 4%.

Background

Analyst Contacts

Arushi Chawla

Pavel Naiya

Counterpoint Research

TWS Specs See Rapid Additions, Improvements

TWS hearables specifications have undergone big changes within a short span of time. According to a Counterpoint Research report that compared changes in key specifications in top 200 models in Q2 2021 (released before December 2019 or after January 2020), typically, weight and battery capacity were the key specs, but noise cancellation and smart assistance became key differentiators. As these functions were added, the weight of the earbuds and charging case increased. Increase in battery capacity and improved material also affected the weight.

In the over-$100 segment, the importance of Active Noise Cancellation (ANC) has been increasing. As many as 72% of the models released in this segment after 2020 are equipped with ANC. In the sub-$100 segment, however, ANC adoption has not increased significantly, mainly due to technical and budget issues. With ANC becoming a common feature, we can expect more OEMs to adopt it going forward.

Not only ANC but other functions are also gaining importance. Dedicated apps, in particular, are seeing increased adoption as they provide an immersive entertainment experience. The adoption rate of dedicated apps has increased by almost two times both in the sub-$100 and over-$100 segments. Consumers looking to set their own music preferences and maximize sound quality through own equalizer have dedicated apps as one of their key priorities when purchasing a TWS. Device detection and finding own TWS through an app are some of the other features becoming popular. Adoption of these features was not much in the models released before December 2019, but it increased significantly in the models released after January 2020.

OEMs adopting sensors like wearing detection, optical and gyro seem to recognize TWS products as ‘wearable devices’ than just wireless audio. Especially in emerging industries like healthcare and metaverse, various TWS sensors are expected to become more important as input/output devices. Apple is reportedly studying ways to make Air Pods health devices that could be used to read body temperature, enhance hearing power, and monitor posture. Other OEMs are expected to follow Apple in this pursuit.

Top

Insights Tag: Hearables