Growth Potential Of True Wireless Earphones

 TWS market size 

According to research and interview data from Whalecore Investment and I Love Audio, and combined with forecasts from research institutions such as Canalys, global shipments of branded TWS headphones will be approximately 250 million pairs in 2020. And global shipments of branded TWS headphones are expected to reach 550 million by 2024. 

From 2020 to 2024, the growth rate of branded TWS headphones will slow down somewhat, but the growth rate of branded TWS headphones will slow down from 2020 to 2024, but will still grow at a CAGR of 19.8%. 

In addition, based on multi-channel supplier data, white label headphone shipments are projected to be around 350 million in 2020 and are expected to exceed 500 million by 2024. Taken together, the TWS headphone market will grow from a total annual shipment of 600 million pairs in 2020 to 1.05 billion pairs in 2024, at a CAGR of 15.04%.

 Industry development cycle 

The market of TWS was opened by Apple at the end of 2016, with a large number of brands starting to enter in 2018. In 2019, mobile phone brand manufacturers in the Android camp address the issue of headphone connectivity, with TWS headphones only halfway through the innovation cycle of terminal devices. 

For the next 2-3 years, TWS headphones will continue to innovate on the hardware of the product itself, providing users with better sound quality, faster connectivity, longer battery life and lower latency. 

 Branded TWS headset shipment pattern 

According to the research, downstream mobile phone manufacturers, traditional audio manufacturers and e-commerce companies share the TWS headset market. 

250 million pairs of branded TWS headphones will be shipped worldwide in 2020, with Apple's shipments accounting for 38% of the industry, and the remaining market share will be occupied by other mobile phone manufacturers such as Xiaomi, Samsung and Huawei, at around 31%. 

In addition, e-commerce brands such as QCY, ANKER, AUKEY, etc. also occupy a larger share of the market and are on par with traditional audio manufacturers in terms of shipment share. 

 TWS market trends 

1) the TWS headphone market will continue to grow at a high rate in the next five years; 

2) the market pattern will change from white label and high imitation-based to brand-based; 

3) mobile phone 

 TWS technology trends 

1) active noise cancellation and call noise cancellation will become the standard for headphones; 

2) the importance of sound quality has increased significantly; 

3) human-computer interaction programs will continue to innovate.

 TWS industry chain trends 

1) the traditional cell phone foundry into the game, bringing industry production efficiency; 

2) the level of automation of manufacturing links will be improved.

 TWS components analysis 

TWS is mainly composed of charging bin and headset, where the charging bin contains lithium battery, power management chip, wireless charging coil and chip, MCU, LED charging indicator module and other components; the left and right headset unit part includes Bluetooth master control chip, lithium battery protection chip, sensor, battery, microphone, speaker, antenna, connector and other electronic devices.