True Wireless Earbuds – Small Device, Big Opportunity

Connectivity changes ahead for True Wireless Earbuds, says SAR Insight

True wireless stereo (TWS) earbuds account for almost half of all headphones sold, according to the latest market analysis from SAR Insight & Consulting, which said this figure will rise to more than 75% in 2025.

Data collected for ‘True Wireless Stereo (TWS) Earbuds, 2020 Update—Market Growth, Market Shares, Technologies Used’, shows that while a range of technologies has driven the market to date, there is every sign that this will continue with further technological developments.

For example, the report’s author Joe Murray said the use of voice assistants in mobile devices has become prevalent since the introduction of the smartphone.

“This has carried over to the earbud market with over 58% of devices being voice enabled,” he said. “Furthermore, this could help pave the way for TWS earbuds to work independently from phones, allowing users to connect directly to the cloud.”

Currently, all TWS earbuds use Bluetooth as a means to communicate with a source device. However, as devices distance themselves from smartphones, they will begin to use Wi-Fi and cellular data to stream directly to the cloud. SAR predicts that this could happen within the next decade.

“It is an exciting time for this market sector because new market entrants are helping to drive down prices while offering consumers a greater array of benefits,” Murray said. “This offers opportunities for component suppliers because the market leaders (such as Apple) are starting to see their market share erode to greater competition.”