Headset Market Report 2025

The headset market size has grown exponentially in recent years. It will grow from $99.28 billion in 2024 to $129.24 billion in 2025 at a compound annual growth rate (CAGR) of 30.2%. The growth in the historic period can be attributed to gaming industry growth, increasing disposable income, rise of remote work, entertainment consumption patterns, globalization of e-commerce.

The headset market size is expected to see exponential growth in the next few years. It will grow to $394.31 billion in 2029 at a compound annual growth rate (CAGR) of 32.2%. The growth in the forecast period can be attributed to rise of augmented reality (AR) and virtual reality, remote work and communication needs, evolving consumer lifestyles, environmental sustainability, emergence of new distribution channels. Major trends in the forecast period include wireless connectivity dominance, rise of true wireless earbuds, integration of advanced features, multi-functional smart headsets, focus on ergonomics and comfort.

The headset market is anticipated to experience growth due to the increasing prevalence of smartphones. Smartphones, multifunctional devices akin to computers, offer a range of benefits including a touchscreen interface, internet access, and compatibility. Headsets complement the smartphone experience, providing ease of handling and enhanced communication for activities such as gaming and general calls. The growing global smartphone user base, reaching 86% of the population (approximately 6.65 billion people) in June 2022, is expected to increase to 7.52 billion users by 2026, according to Zippia. Consequently, the expanding penetration of smartphones is a driving force behind the demand for headsets.

The surge in the number of gamers is expected to propel the growth of the headset market. The term 'gamer' now encompasses a diverse range of individuals engaged in gaming across various platforms, including desktops, laptops, gaming consoles, and mobile devices. Gaming headsets play a crucial role in enhancing audio quality, communication, and overall immersion in the gaming experience. The Australia Plays 2023 report by the Interactive Games and Entertainment Association revealed that 81% of Australians are engaged in playing video games, marking a 14% increase from the Digital Australia 2022 survey conducted two years earlier. This rise in the gaming community is a significant driver for the headset market.

Technological advancements are a significant trend gaining traction in the headsets market. Leading companies in this sector are launching innovative products featuring advanced technologies to maintain their competitive edge. For example, in September 2022, Jabra, a Danish company specializing in audio equipment, introduced two cutting-edge products, the Engage 40 and Engage 50 II. These headsets come equipped with built-in hearing protection, noise-isolating earcups, and advanced speaker technology, including innovative speech optimization and background noise cancellation, enabling users to communicate clearly without distractions.

Prominent companies in the headset market are pursuing strategic partnerships to integrate Teams, Office, Windows, and Xbox into virtual reality (VR). Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefit and success. For instance, in October 2022, Microsoft Corporation announced a collaboration with Meta Platforms, Inc. to enhance how individuals operate and engage in virtual reality. Microsoft's initial initiative is to bring its essential services, such as Teams, Office, Windows, and potentially Xbox Cloud Gaming, to Meta's Quest VR devices. As part of this collaboration, Microsoft will adapt Meta's avatar system for Teams, and Teams will receive integration within Meta's Horizon Workrooms as part of the Teams experience on the new Quest Pro and Quest 2 headsets. This virtual workplace of the future will encompass more than just meetings, as Windows 365 is now accessible on Quest, allowing users to stream complete versions of Windows to their devices. Meta Platforms, Inc. is a U.S.-based technology company.

In March 2022, Sonova, a Switzerland-based audio devices company, acquired the Consumer Division of Sennheiser for an undisclosed amount. This acquisition not only expands Sonova's consumer division in audio devices but also opens up growth opportunities in the true wireless headset market. Sennheiser, a Germany-based company known for its high-quality audio products, aligns with Sonova's objectives in the audio device sector.

Major companies operating in the headset market include Alclair Audio Inc., Bose Corporation, JVC Kenwood Corporation, Apple Inc., Harman International Industries, Grado Labs, Shure Incorporated, Koninklijke Philips N.V., Logitech International SA, Panasonic Corporation, Plantronics Inc., Sony Corporation, Shenzhen Cannice Technology Co. Ltd., GN Netcom, Motorola, LG Electronics, Sennheiser Electronic GmbH & Co. KG, Jabra (GN Audio), Beyerdynamic GmbH & Co. KG, Audeze LLC, Razer Inc., Audio-Technica Corporation, Skullcandy Inc., Corsair Gaming Inc., SteelSeries, Creative Technology Ltd., HIFIMAN Electronics.

North America was the largest region in the headset market in 202. The regions covered in the headset market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the headset market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A headset is a hardware device that connects to a smartphone, computer, or laptop, facilitating audio listening and communication through a built-in microphone, thereby enhancing ease of communication.

The primary types of headsets are in-ear and over-the-ear. In-ear headsets are compact electronic devices resembling earbuds but with higher audio quality. These headsets come in various price bands, categorized as below USD 50, USD 51-150, USD 151-350, and over USD 351. Connectivity options include wired and wireless. Headsets find application in various devices, including smartphones, personal computers (PCs), wearables, and others.

The headset market research report is one of a series of new reports that provides headset market statistics, including headset industry global market size, regional shares, competitors with a headset market share, detailed headset market segments, market trends, and opportunities, and any further data you may need to thrive in the headset industry. This headset market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The headset market consists of sales of classic headsets, closed-back headsets, open-back headsets, and active noise-canceling headsets. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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