In-home entertainment audio: Speakers, headphones, gaming headsets and more

by Melanie Victoriano (Content Editor)

Image source: Shutterstock

In-home entertainment was the pandemic equivalent of going out for most people when COVID-19 made mobility restrictions necessary for public health reasons in 2020, forcing half of the global population indoors. Now, two years hence and restrictions lifted, “staying in” practices for rest and relaxation – watching movies on home theater systems, streaming music or TV shows, and playing games online or on mobile devices -- are still very much around. In-home entertainment as a trend looks likely to endure in the post-pandemic “new normal” period.

Riding high on the in-home entertainment wave is the audio products sector, particularly headphones, headsets, and earphones. Consumers are developing into audiophiles, with higher expectations of audio products. This applies not only to sound quality but also to the appearance and other features of their audio gear.

China, a major manufacturing center for these products, is reporting rapid and steady output. According to the recent China Audio Industry Report released by the China Audio Industry Association, the export value of China’s major audio products reached $8.1 billion in 2021, up by 43.48 percent compared with 2020. The United States, Britain, and Germany are the main consumer markets for audio products.

The same report noted significant growth for wireless headphones in particular, with 2020 production output reaching 738 million units, representing a 30.26 percent year-on-year increase. More recent research by Global Industry Analysts forecasts that China’s wireless headphones market will be valued at $10.4 billion by 2026.

The most in-demand audio products, based on Global Sources’ analysis of consumer online searches, are Bluetooth headphones and headsets, sound bars, TWS headsets, earphones, and audio cables.

Gaming headsets, meanwhile, are gaining ground as well. This includes headsets ideal for video game consoles like PlayStation 5, Xbox One X, and Nintendo Switch. The sector is buoyed by the rise of gaming, including e-sports.

The increasing number of female gamers is another growth driver of gaming headsets.

More female gamers result in the development of gaming headsets and other peripherals with features designed for the “she-economy” or are women-focused. In European markets such as the UK and Germany, 43 percent of females who are active players on video game consoles and other computer games have expressed their desire to buy more gaming devices. More than 25 percent of European female gamers say that they buy peripherals to enhance their gaming performance and have a better experience.

Overall, the forecast is rosy for in-home entertainment audio products due to rising consumer demand. Home audio products, including Bluetooth speakers, are forecast to reach $14.06 billion in 2028, up from their 2021 value of $11.01 billion, according to MarketWatch. Wireless headphones, worth $18.27 billion in 2021, are forecast to have a 21.5 percent CAGR to reach $69.96 billion in 2028, reports market research firm BlueWeave. Gaming headsets and headphones, valued at $15.7 billion in 2021, will have a 6.9 percent CAGR from 2022 to 2028, based on forecasts from Reports Publisher.