According to market research firm Counterpoint, the TWS earbuds market will rise 33% year on year in 2021, reaching 310 million units. Due to the economic downturn and related uncertainties, the proportion of sales of low- to mid-end models has risen faster than predicted, according to the company. The market success of high-end brands has also been affected by this development. Apple, Xiaomi, and Samsung, on the other hand, led the market in 2020 and are expected to maintain their positions this year. Due to the COVID-19 pandemic, the trend of working and studying from home is expected to play a significant role in the segment’s growth in 2021.
In its Global Hearables (TWS) Market Forecast, 2021-2023 survey, Counterpoint forecasts a significant increase in the global TWS earbuds market in 2021. According to the report, Apple will retain its lead by selling about 84 million AirPods, though its market share will decline by 4% by 2020. Xiaomi and Samsung are expected to maintain their respective market shares of 9% and 7%.
TWS earbuds will see rapid growth in the fourth quarter of 2021, around the period when Apple and other brands are expected to release new products, according to the survey.
“Most anticipated is a new release from Apple, it is first in two years. We expect it to be one of the biggest drivers of TWS market growth from Q4 2021 to the next year,” said Liz Lee, a senior research analyst at Counterpoint.
While Apple is expected to maintain its leadership, the research firm predicts that the low- to mid-end segment will continue to expand at a rapid pace throughout the year. According to Lee, the trend will eventually move to the mid-to high-price segment in the future.
“Most premium brands would incorporate advanced features and functions to their latest versions, resulting in significant long-term value addition. Meanwhile, low- and mid-priced brands would increase their price competitiveness in order to fight for market share,” she said.
According to Counterpoint, the demand for TWS earbuds grew 78 percent year over year in 2020, significantly above the initial annual estimate of 233 million units. Low- and mid-price segment goods, on the other hand, are expected to be the growth drivers in 2020.