Table of Contents
Executive Summary
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- The market
- Surge in Bluetooth market driving revenues
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- Figure 1: Value of headphone sales, by type, 2014-17
- Smartphone manufacturers lead in a crowded marketplace
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- Figure 2: Headphone ownership, by brand, July 2017
- Rising device use has driven headphone ownership
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- Figure 3: Device ownership, December 2015-June 2017
- The consumer
- Ownership struggling for growth
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- Figure 4: Headphone ownership, by type, July 2017
- Nearly half of main headphones are in-ear
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- Figure 5: Main headphone ownership, by type, July 2017
- Smartphone use driving headphone features
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- Figure 6: Headphone features, July 2017
- A quarter of main headphones were free
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- Figure 7: Purchase location, July 2017
- A third of people plan to buy headphones in the next year
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- Figure 8: Headphone purchase plans, July 2017
- Importance of sound quality promotes demonstrations and review sites
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- Figure 9: Important upgrade factors, July 2017
- What we think
Issues and Insights
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- The challenges of the shift to wireless
- The facts
- The implications
- Strong expertise vital in-store and online as headphones become more complex
- The facts
- The implications
The Market – What You Need to Know
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- Surge in Bluetooth market driving revenues
- A strong wired segment remains
- Smartphone manufacturers lead in a crowded marketplace
- Most people only have one brand of headphones
- Rising device use has driven headphone ownership
- Headphone jack removal leads to upsurge in wireless sales
Market Size
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- Surge in Bluetooth market driving revenues…
- …but a strong wired segment remains
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- Figure 10: Value of headphone sales, 2014-17
- Figure 11: Value of headphone sales, by type, 2014-17
Market Share
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- Smartphone manufacturer brands dominate ownership
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- Figure 12: Headphone ownership, by brand, July 2017
- Most people only have one brand of headphones
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- Figure 13: Repertoire of number of brands owned, July 2017
- People with smartphone headphones likely to own multiple brands
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- Figure 14: Repertoire of number of brands owned, by brand, July 2017
Market Drivers
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- Rising device use has driven headphone ownership
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- Figure 15: Device ownership, December 2015-June 2017
- Wide availability of music, video and audio boosts headphone use
- Headphone jack removal leads to upsurge in wireless sales
- Advertising spend doubles as headphone brands push wireless adoption
- Falling Pound drives import prices up amidst economic uncertainty
- Designer brands pushing headphones as premium accessories
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- Figure 16: Beats Liverpool Football Club Headphones
- Figure 17: Sennheiser’s Pink Floyd-inspired headphones
Companies and Brands – What You Need to Know
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- Increasing range of truly wireless in-ear headphones
- Google Pixel Buds bring new possibilities for headphones
- Second generation of wireless earbuds set for 2018
- Digital overtakes TV as dominant headphone advertising platform
- Advertising spend doubles as headphone brands push wireless adoption
- Samsung most recommended but Apple likely to be a favourite brand
Launch Activity and Innovation
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- Increasing range of truly wireless in-ear headphones
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- Figure 18: Bang & Olufsen’s BeoPlay E8 earphones
- Figure 19: Bose’s SoundSport Free wireless headphones
- Google Pixel Buds bring new possibilities for headphones
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- Figure 20: Google’s Pixel Buds headphones launched with the Pixel 2 smartphone
- Beats continues to innovate in the on/over-ear segment
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- Figure 21: Beats Studio3 range, launched in September 2017
- Second generation of wireless earbuds set for 2018
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- Figure 22: Apple’s AirPod wireless headphones
Brand Research
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- Brand map
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- Figure 23: Attitudes towards and usage of selected brands, August 2017
- Key brand metrics
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- Figure 24: Key metrics for selected brands, August 2017
- Brand attitudes: Beats and Apple’s innovation underpins premium brand image
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- Figure 25: Attitudes, by brand, August 2017
- Brand personality: Leading brands fostering fun, upbeat brand image
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- Figure 26: Brand personality – Macro image, August 2017
- Audio-focused brands perceived as more cutting edge and stylish
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- Figure 27: Brand personality – Micro image, August 2017
- Brand analysis
- Samsung the most used and trusted brand despite lacking Apple’s differentiation
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- Figure 28: User profile of Samsung, August 2017
- Sony remains a trusted brand despite less differentiation
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- Figure 29: User profile of Sony, August 2017
- Bose’s premium pricing sees usage well below awareness levels
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- Figure 30: User profile of Bose, August 2017
- Apple is most likely to be people’s favourite brand
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- Figure 31: User profile of Apple, August 2017
- Sennheiser struggles for brand awareness but receives strong recommendations
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- Figure 32: User profile of Sennheiser, August 2017
- Beats usage limited by high prices but satisfaction levels high
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- Figure 33: User profile of Beats by Dre, August 2017
- Philips perceived as reliable but outdated and basic
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- Figure 34: User profile of Philips, August 2017
- Marshall lacks brand awareness but maintains an upbeat, stylish perception
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- Figure 35: User profile of Marshall Headphones, August 2017
The Consumer – What You Need to Know
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- Headphone ownership flat at 81%
- In-ear headphones are most popular
- Wireless growth set to accelerate
- A quarter of main headphones were free
- In-store presence remains vital in headphone market
- A third of people plan to buy headphones in the next year
- Price remains a key issue in a crowded marketplace
- Importance of sound quality promotes demonstrations and review sites
Headphone Ownership
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- Ownership levels broadly unchanged from 2015
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- Figure 36: Headphone ownership, by type, February 2015 and July 2017
- More than a third of over-55s do not own headphones
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- Figure 37: Headphone ownership, by type, by generation, July 2017
- Nearly half of main headphones are in-ear
- On/over-ear headphones weighted towards men and older consumers
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- Figure 38: Main headphone ownership, by type, July 2017
Headphone Features
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- Smartphone use driving headphone features
- Warranties could gain importance as premium headphones grow
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- Figure 39: Headphone features, July 2017
- Wireless growth set to accelerate
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- Figure 40: Headphone features, by gender, July 2017
- On/over-ear headphones more likely to be wireless
- Most headphone features more prominent among Millennials
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- Figure 41: Headphone features, by generation, July 2017
Purchase Methods
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- A quarter of main headphones were free
- In-store presence remains important in the headphone market…
- …but trial periods could boost online sales
- Gift market could boost sale events such as Black Friday
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- Figure 42: Purchase location, July 2017
- Women far more likely to rely on free headphones with smartphone
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- Figure 43: Purchase location, by gender, July 2017
- Online-only retailers most popular due to competitive pricing
- Gender divide sees more men purchasing in specialist retailers
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- Figure 44: Online/in-store purchase location, by gender, July 2017
Intent to Buy
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- A third of people plan to buy headphones in the next year
- Young Millennials are a key group to target
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- Figure 45: Headphone purchase plans, July 2017
- Broadly level purchase intention for in-ear and on-ear models
- Fitness market boosting demand for ear-hook/clip-on headphones
- Technologically engaged wireless owners still likely to upgrade
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- Figure 46: Purchase plans, by headphone type, July 2017
Important Factors when Upgrading
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- Price sensitivity high in a crowded market
- Importance of sound quality promotes demonstrations and review sites
- Design far less important than function and fit
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- Figure 47: Important upgrade factors, July 2017
- Most people have three or more important upgrade factors
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- Figure 48: Repertoire of important upgrade factors, July 2017
- Strong branding can reduce price sensitivity
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- Figure 49: Important upgrade factors, by brand of headphones owned, July 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Brand research
- Brand map
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