The size of the global market for true wireless hearables is expected to touch 120 million units this year and 230 million units in 2020, growing 90 percent year on year (YoY), said a new report on Friday. According to Counterpoint Research's "Hearables Market Forecast", even as Apple's market share fell to 45 percent in Q3 2019, it will likely take more than 50 percent of the market share on an annual basis.
"The true wireless hearables market will have a similar growth momentum as the early smartphone market a decade ago. The CAGR of the smartphone market from 2009 to 2012 was 80 percent, and the true wireless hearables market is expected to grow at 80 percent CAGR from 2019 to 2022 as well," Liz Lee, Senior Analyst at Counterpoint Research, said in a statement.
In 2020, the market will become more dynamic as tech giants such as Amazon, Google and Microsoft are entering the true wireless hearables industry and existing smartphone makers such as Samsung, Xiaomi and Huawei will expand their business aggressively. "Based on future product strategies focused on voice communications from global tech companies and their efforts to create high-added value, the true wireless hearables are just becoming one of the daily necessities among consumers."
While the rapid growth of the Chinese market is prominent, Chinese players are expected to pick-up further in 2020. Not only global brands but the emerging Chinese local brands in low-end products will also command attention. Apple is also expected to show a significant turnaround in Q4 fuelled by its new model, AirPods Pro. In 2020, Apple will maintain a strong market leadership based on its loyal customer base, with advanced product and marketing strategies. Demand for replacements from consumers who purchased first-generation products two or three years ago, will likely soar, as well as first time purchasers who are now entering the market in large numbers.