Global smart personal audio market rebounds with record growth in Q2

The global smart personal audio market, which includes True Wireless Stereo (TWS) devices, wireless earphones, and wireless headphones, experienced a robust recovery in the second quarter of 2024. 

According to a report from industry analysts Canalys, total shipments surged to 106 million units, marking a 10.6 per cent year-on-year increase and setting a new record for second-quarter shipments. 

Both TWS and wireless headphones were key drivers of this growth, with shipments reaching 77 million and 15 million units, respectively.

TWS devices continued to dominate the global smart personal audio market in Q2 2024, securing a commanding 72.6 per cent market share with a 12.6 per cent annual growth. 

Despite a slowdown in the traditional TWS segment, leading vendors have successfully navigated the competitive landscape by strategically pricing models under $50. 

For the first time, the sub-$50 price segment accounted for more than 50 per cent of the market this quarter.

“Vendors are actively looking to add novelty features to stand out from the intensifying competition with homogenous characteristics and price wars,” stated Cynthia Chen, Research Manager at Canalys. 

In addition, she highlighted Huawei’s Lipstick 2, designed as a lipstick and featuring premium materials aimed at appealing to female consumers. 

JBL has introduced a display in earphone cases, enabling users to check notifications directly, thus reducing phone dependence and enhancing interaction with the earphones as stand-alone devices. 

Additionally, emerging players like Nothing and iFlytek are incorporating AI assistant features into their latest models, hoping to capitalise on the growing AI trend.

The open-form factor emerged as a significant growth area in Q2 2024, particularly within the TWS and wireless earphone categories. 

“High technical barriers have constrained the open-form factor, but vendors are bringing it out from the niche segment by offering consumers unique user experiences and affordable price points,” added Chen. 

This form factor’s adaptability to various scenarios has made it particularly well-received.

The company also explained that leading brands like Shokz are intensifying their focus on sports integration, while Huawei’s innovative clip-on designs enhance both comfort and style. 

Both brands now hold over 10 per cent of the market share in the open-form factor segment. However, as the novelty of this new form factor begins to wane over the next 12 months with more vendors entering the market, companies will need to prioritise product quality and feature improvements beyond just form factor innovation.

The wireless headphones market also saw a rebound in Q2 2024, driven by a balance between high-end and cost-effective options. 

“Emerging players’ market expansion is fuelling the segment’s recovery,” said Jack Leathem, Research Analyst at Canalys. 

Brands like QCY, Baseus, and Anker are making significant inroads into the international market with their $50 to $100 products, which offer seamless wireless connectivity and long battery life, rapidly gaining traction in established retail channels.

Meanwhile, established audio vendors such as Bose and Sony continue to dominate the high-end market ($350 and above). 

Having withdrawn from low-end competition, these companies have refocused their strategies on the premium segment, differentiating themselves through superior sound quality. 

This focus on audio fidelity helps these brands protect their high-end user bases from emerging players, enabling them to build sustainable revenue streams.

“The audio market is becoming increasingly crowded as major vendors still see opportunities to expand their presence,” Chen stated. 

Technological advancements are enabling branded vendors to offer high-quality, high-performance products at competitive prices, displacing white-label products, particularly in emerging regions. 

Finally, the company stated that the shift from wired to wireless headphones, driven by improved connectivity and changing consumer preferences, also establishes a strong growth foundation for the wireless audio sector.