Listening to Consumers: Headphones in 2023

Key Findings

Demand for headphones will be strong

There is a large installed base of smartphones, tablets, portable players and PCs that will help drive demand for headphones.

Music and exercise drives demand

The popularity of streaming music services and growing interest in exercise will be the key drivers for headphones sales.

Headbands will remain a niche and command a premium

Audiophiles will still stick to headbands as the larger body allows better and larger drivers and larger capacity battery (for wireless headbands) to be installed leading to a better audio experience.

Consumers more receptive to new brands

There is an onslaught of new headphones brands offer audio performance comparable to established headphones brands. These brands are priced competitively leading consumers to try out these new brands.

Integration of smart functions drives up prices

Manufacturers are incorporating smart assistants such as Siri and Alexa and also fitness coaching onto headphones which opens up the headphones market to a wider audience.

Wireless earphones to dominate the market

The removal of the headphones jack from smartphones spurs strong wireless headphones sales over the forecast period. True wireless earphones also drive average prices of headphones upwards.

Internet is the perfect retail channel for headphones

The ease of transportation of headphones means that internet retailing will be the most powerful retail channel for new entrants into the market.