Hearables Market to Reach $146 Billion by 2030
While the Covid-19 pandemic caused delays to the production and shipments of hearables technology in early 2020, consumer demand has remained strong. This has largely been driven by increased digital media consumption, the widespread shift to home-working, and the popularity of virtual fitness coaching.
As manufacturers continue to enhance hearables over the next 3 years, with more artificial intelligence (AI) and audio and sensor technologies, the market is projected to grow at a compound annual growth rate of 17% from $26bn in 2019 to $146bn by 2030, according to industry analysts, GlobalData.
According to a new report from GlobalData, while the market is expected to grow, it has seen a setback from the major impact of the pandemic on the supply chain. In 2019, shipments of hearables increased by 258% to 163 million units. However, due to the shutdowns of production in core manufacturing countries such as China, growth in 2020 will be a more modest 37%.
Rupantar Guha from GlobalData, commented: “Hearables represents the largest segment of the wearable tech industry by revenue – this is larger even than other categories such as smartwatches and smart glasses. By the end of 2020, GlobalData estimates that 5% of the global population will own hearables, which will grow to more than 38% by 2030. The current low penetration rate gives plenty of scope for growth. Therefore, hearables vendors must continue to improve their devices’ capabilities in areas such as audio quality, personalisation, sensor capabilities and battery life.”
The popularity of hearables with consumers is expected to grow as the devices continue to evolve. Offering greater comfort and longer battery life, consumers will be drawn in by the next generation’s health monitoring, AI-based communication and immersive spatial audio that offers a theater-like, surround-sound experience.
“Vendors will focus on their respective areas of expertise to develop their devices’ capabilities and services. Google, Amazon, Microsoft, and Nuheara offer AI-based real-time language translation, virtual fitness coaching, and personalized hearing solutions on their hearables, while Bose and Sennheiser provide active noise cancellation to improve the audio quality of hearables. Apple, in addition to AI and audio technologies, is also investing in biosensors that will allow AirPod users to monitor their heart rate and oxygen saturation via their hearables. Over the next three years, most hearables will integrate advances in AI, audio, and sensor technologies, with success dependent on pricing and distribution strategies” added Guha.