China Gaming Headsets - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The China Gaming Headsets Market size is estimated at USD 272.17 million in 2024, and is expected to reach USD 444.96 million by 2029, growing at a CAGR of 10.32% during the forecast period (2024-2029).

Key Highlights

• The growing popularity of gaming and virtual reality applications is driving the demand for headphones and earphones in China. These devices enhance the gaming experience by providing immersive sound effects and spatial audio. According to the Game Committee of the Publishers Association of China, the world’s second-largest economy is already home to one of the largest gaming populations in the world, reaching 668 million in 2023, an increase from 664 million in 2022.
• The Chinese Audio-video and Digital Publishing Association report that with its 668 million gamers, China experienced significant revenue growth in its gaming sector, particularly during the COVID-19 pandemic. In 2023, the average revenue per gamer increased to CNY 453 (USD 63.38), compared to CNY 360 (USD 50.37) in 2019. This growth highlighted the expanding economic impact of the gaming industry in China.
• In 2023, data from the National Bureau of Statistics of China revealed that the average annual per capita disposable income for Chinese households was approximately CNY 39,200 (USD 5,484.28). This statistic highlights the average Chinese citizen's economic status and purchasing power, providing valuable insight for market analysis and financial forecasting.
• To that extent, in November 2023, Meta Platforms inked a deal with Tencent Holdings to introduce a budget-friendly virtual reality (VR) headset in China, marking its re-entry into a market where Facebook and Instagram face restrictions. Under the terms, Tencent secures exclusive rights to distribute the headset in China, with sales set to commence by late 2024. This move marked Meta's re-emergence in China after a 14-year hiatus. It sets the stage for direct competition with Bytedance, the parent company of TikTok, which already offers the VR headset Pico.
• China also has a robust internet base, significantly driving the growth of the studied market. For instance, according to the China Internet Network Information Center (CNNIC), China's internet population grew by 11 million in June 2023 compared to December 2022. Over one billion people in the country have access to the internet, resulting in a fast-growing mobile app market. In 2022, China accounted for about one-fifth of the 5.3 billion internet users worldwide.
• In the current market scenario, monetization is dominated by publishers and advertisers. However, restraints like limited local game development and monetization of gamers still challenge the high potential. In recent years, the overall internet ecosystem initiated course correction through end-to-end local game development.

China Gaming Headsets Market Trends

Rising Internet Penetration and Emergence of Cloud Gaming Platforms

• The online gaming market has seen significant growth, primarily fueled by rising internet penetration and the widespread adoption of affordable smartphones in urban and rural areas. Revenue in this sector is generated through various channels, including in-app purchases, pay-per-download, subscription services, in-app ads, and incentive-based ads. For instance, in December 2023, China's internet population, as reported by CNNIC, expanded by 24.8 million from the previous year, surpassing one billion users. This significant increase has notably driven the rapid growth of China's mobile app market.
• With the rising internet penetration, major technology vendors are investing in online gaming, driving the region's market growth. For instance, in July 2024, Balenciaga collaborated with Tencent's Need for Speed Mobile game. Following its partnership with Alipay, Balenciaga strengthened its connections with Chinese technology leaders by partnering with Tencent's 'Need for Speed Mobile' racing game. This collaboration, over 500 days in the works, featured exclusive in-game items for both characters and vehicles. Fans could purchase physical merchandise at selected Balenciaga outlets, on balenciaga.cn, and through its WeChat Mini Program.
• As of today, the gaming market had undergone a significant transformation compared to a decade ago, largely due to globalization, digitalization, and the rise of mobile gaming. Mobile gaming, in particular, had expanded the player base and broadened the industry's global reach.
• The increasing number of mobile internet users was projected to lead to a fivefold surge in data consumption. For instance, data from January 2024, as reported by GSMA, highlighted China's dominance in Asia-Pacific, boasting about 1.76 billion mobile connections. These statistics underscored the potential of markets with youthful demographics, high internet penetration, active online engagement, and a growing willingness to spend on gaming.
• However, restraints like limited local game development and monetization of gamers are still challenging the high potential. In recent years, the overall internet ecosystem initiated course correction through end-to-end local game development.

Wireless Gaming Headset Segment to Hold Significant Market Share

• Wireless gaming headsets offer greater convenience and mobility compared to wired headsets. Gamers in China may move freely without being restricted by wires, allowing for a more immersive and comfortable gaming experience.
• The popularity of mobile gaming in China is on the rise, and wireless gaming headsets are well-suited for mobile gaming platforms. They provide a seamless connection to smartphones or tablets, enabling gamers to enjoy their favorite games on the go. For instance, in May 2024, SteelSeries commemorated the Lunar New Year with a special edition of its Arctis Nova 7 gaming headphones, inspired by the dragon, one of the twelve Chinese zodiac animals. The Arctis Nova 7 Dragon Edition headphones arrived in a customary red and gold motif, colors that symbolize prosperity and fortune, respectively, in the Lunar New Year tradition.
• Wireless gaming headsets have significantly improved in terms of audio quality, latency, and connection stability. Advancements in wireless technology, such as Bluetooth and wireless USB dongles, have made wireless headsets a viable and reliable option for gamers in China. For instance, in July 2024, Chinese electronics firm OXS unveiled its latest offering, the budget-friendly gaming headset, the OXS Storm G2 Wireless. The headset is priced at approximately EUR 79.99 (USD 87.48) and is accessible on Amazon and the official OXS website. Despite its modest price tag, the OXS Storm G2 Wireless packs a punch with a 1000 mAh battery, virtual 7.1 surround sound, multiple EQ presets, and versatile connectivity options, including Bluetooth, wired, and 2.4GHz.
• China has a thriving eSports scene, with many professional gamers and competitive gaming events. Wireless gaming headsets provide the freedom of movement required for professional gamers during intense gameplay, giving them an edge in competitive gaming environments. For instance, in January 2024, ESL, a prominent esports tournament organizer, revealed that IEM China was set to take place in Chengdu, China. This high-stakes event boasted a prize pool of USD 250,000 and was scheduled for April 8 - April 14, 2024.
• With the increasing emphasis on lifestyle and portability in China, wireless gaming headsets align with the preferences of gamers who value convenience and minimalistic setups. Wireless headsets fit well into the modern lifestyle of urban gamers.

China Gaming Headsets Industry Overview

The Chinese gaming headsets market is characterized by intense competition due to the presence of numerous small and large players. The market exhibits moderate concentration, with major players implementing strategies such as product and service innovation, and engaging in mergers and acquisitions. These approaches are designed to maintain a competitive advantage and expand their market reach.

• May 2024: Steelseries recently unveiled its latest offering, the Arctis Nova 5 wireless gaming headset, priced at USD 129.99. This was USD 50 cheaper than its counterpart, the Nova 7. Steelseries headset to offer on-the-fly Sonar audio presets specifically tailored for the PS5 and Xbox Series X|S gaming consoles. The Arctis Nova 5 is seamlessly integrated with Steelseries' new mobile app. This app, akin to the Sonar software for PCs, empowered PS5 and Xbox gamers to select audio presets.
• April 2024: Razer announced that its mid-range gaming headset, the BlackShark V2 Pro, had models available for PlayStation and Xbox consoles. Previously, the Razer BlackShark V2 Pro had one PC-compatible model. The brand introduced versions for PlayStation and Xbox, priced at USD 199.99. It is important to note that the PlayStation version was not multiplatform, while the Xbox version worked across its native systems, including PS5 and PS4.

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• The market estimate (ME) sheet in Excel format
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