company news about Competitive Analysis for TWS earbuds

Analysis on the market status and competition pattern of China wireless headset industry in 2020

With the development and application of high fidelity, stereo dual channel, noise reduction, true wireless technology, the production and output value of wireless earphones are in a rapid growth trend in the past two years. In 2019, the output value of wireless earphones reached 66.4 billion yuan, more than twice that of wired earphones.

In the first half of 2020, China's wireless headset market shipped 42.56 million units, up 24% year on year. The growth rate of active noise reduction products in the real wireless headset market exceeds 120%. In terms of price, the market still prefers medium and low price brands, accounting for more than half of the sales volume.

1. The output value of wireless earphones in China is more than twice that of wired earphones

With the development and application of high fidelity, stereo dual channel, noise reduction, true wireless technology, the production and output value of wireless earphones are in a rapid growth trend in the past two years. According to data from the China Electronics and Audio Industry Association, from 2015 to 2019, the output value of wireless earphones in China has been rising, while that of wired earphones has been declining year by year.

In 2017, the output value of wireless earphones in China basically leveled with that of limited earphones for the first time, and then the output value of wireless earphones grew faster. In 2019, the output value of wireless earphones reached 66.4 billion yuan, more than twice that of wired earphones.

2. The growth rate of active noise reduction products in the real wireless headset market exceeded 120%

With the demand of consumers for the active noise reduction function of wireless earphone, the active noise reduction products of true wireless earphone are growing rapidly in China. In the first half of 2020, active noise reduction products in China's real wireless headset market accounted for 30%, with a year-on-year growth of 122%, a significant increase. As major manufacturers equip their flagship products with active noise reduction functions, the proportion of active noise reduction functions will increase rapidly in the future.

3. The sales volume of medium and low price brands accounts for more than half

In terms of price, the prices of TWS wireless earphones on the market vary greatly, ranging from thousands of yuan to hundreds of yuan. By contrast, TWS wireless headphones, made in China, are cheaper. According to Counterpoint Research, a market Research firm, after the epidemic began to spread, sales centered on low - and medium-price brands, influenced by the shrinking consumer psychology and the expansion of online channel sales, soared. For the first time, products sold under $100 accounted for more than half of the market, accounting for 56 percent. As a result, the giants are frantically looking for solutions in the middle and low end of the consumption range.

As companies continue to innovate and develop true wireless devices, the cost of producing wireless headphones will fall further. The wireless headphone market will continue to grow as consumers' discretionary income increases, their consumption habits of digital products change, and their consumption levels of entertainment and culture increase.