Canalys: Global personal smart audio device performance strong in the third quarter, with shipments increasing by 15% year-on-year.

Canalys reported that in the third quarter of 2024, the global market for personal smart audio devices experienced a strong rebound, with total shipments approaching 126 million units, a 15% year-on-year increase. This marks the third consecutive quarter of growth for the market, indicating that it has bounced back from the challenges it faced in 2023 and is continuing to rise. Universal growth has benefited every major subregion. All major product categories have achieved double-digit growth rates, and the global market outlook is positive. Emerging open earphones and medium-sized manufacturers have made strong contributions. Research analyst Jack Leathem stated that the Indian market played a critical role in driving growth in the Asia-Pacific region and globally, with a shipment growth rate of 51%, an increase of approximately 9 million units compared to the third quarter of 2023. This is due to a 47% increase in TWS device shipments, as well as a remarkable 65% increase in shipments of wireless earphones supported by brands like boAt and OnePlus. With inventory levels decreasing, boAt re-released popular older models of wireless earphones to meet growing consumer demand. boAt and OnePlus have continuously introduced a series of new devices with increasingly powerful features, focusing on improving audio quality and functionality upgrades, including Active Noise Cancellation (ANC). Devices with ANC capabilities have reached a new high, holding a 21% share of the overall Indian market, with 52% of OnePlus's shipments being devices with ANC. This shift indicates a new phase in the Indian market, where consumers increasingly prefer high-performance devices with advanced features. Research manager Cynthia Chen stated that the open earphone market saw significant growth in the third quarter of 2024, aligning with the global trend of growth in health and fitness, leading to a surge in demand for open TWS and wireless earphones. The shipment volume of this category accounts for 6% of the overall market, nearly tripling year-on-year growth rates. OW devices are the core driver of this growth, mainly from professional brands like Shokz and Sanag. In addition, major manufacturers are also entering this niche market segment, seeking to attract new customer groups. Although Shokz has significantly expanded in North America and Western Europe, with these regions currently accounting for 39% of Shokz's shipments, up from 31% last year, mainland China still leads in shipments of open form devices, holding a 59% global market share. This shift highlights the increasing appeal of open form devices globally, particularly as consumers lean towards audio solutions suitable for active outdoor lifestyles. Cynthia continued, "Chinese audio device brands are rapidly expanding in international markets, indicating a shift in strategic focus from intense domestic competition to overseas markets, in an effort to increase shipments and enhance brand recognition. These brands are introducing entry-level products to attract consumer groups targeted by 'white label' competitors, to gain market share." She emphasized that this shift is a small-scale manifestation of the overall trend of improving product quality. However, as these brands gain stable market shares, they will face new challenges, shifting their focus to creating high-quality and more innovative products, a crucial move for maintaining competitiveness in the medium to long term. Leathem stated, "As competition in the personal smart audio device market intensifies, manufacturers must focus on technological innovation and unique design to stand out in the market. To excel in such a competitive environment, manufacturers should prioritize upgrading core audio technologies such as ANC and spatial audio, while also introducing visually impactful features. For example, some models from JBL currently feature touch screen charging cases, providing a unique interactive experience to enhance practicality. In addition, bold color designs, semi-transparent shells, and brand collaborations are worth trying, as they can attract consumer attention and solidify market positions, playing a crucial role in attracting consumer interest and establishing footholds in new and existing markets."