Even though the TWS market “began” with Apple AirPods, True Wireless Stereo headsets were actually not a new thing and vendors such as Onkyo, Bragi and Samsung were already offering TWS headsets before Apple introduced its AirPods. Apple can still be credited as the vendor that created the phenomenon of TWS headsets with the launch of AirPods. tws market share

TWS headset wholesale ASPs are trending downward as commoditization of technology, falling IPR costs, economies of scale and a rising number of TWS vendors put downward pressure on prices. This process in turn drives higher sales volumes as TWS headsets become more affordable to a greater number of consumers.

In 2021 global TWS wholesale ASPs will fall by -19% annually and by -11% in 2022, even as global TWS sales volumes will increase by 51% and 54% over the same period. Revenues will grow 54% in 2021 and 22% in 2022.

United States (US) leads the revenue ranking in 2021 before China and Japan. US takes 30% of all TWS revenues and China takes 22%. United States alone is actually larger market than entire Western Europe by value. China market is currently on par with Western Europe but is estimated to surpass WE by value in 2022.

“Apple lost considerable share in both sales volume and value despite big price drops on the AirPods, but the company is unlikely to be too worried,” says senior analyst Liz Lee, who oversees TWS hearables research at Counterpoint. “I think the 3^rd generation AirPods expected next month could be a massive hit. It’s been so long since we’ve seen a new release, and if you factor in some attractive pricing, it’s very possible the AirPods 3 could push overall sales for Apple TWS hearables past 80m for the year.”

The global market for TWS hearables saw tepid QoQ growth in Q2 2021, as typically strong spring sales waned across the US and Asia ex-China markets, resulting in overall unit sales and value rising by only 1% and 9%, respectively. On a YoY basis, although the market enjoyed 27% growth compared with 2020’s COVID impacted Q2, the rankings saw few new developments, although significant change did arise in terms of market share. tws market share

Looking at how unit share is evolving Lee notes, ”Samsung grabbed a big portion of the premium segment, while Xiaomi was a standout across sub-$100. Indian player boAt, also made some great gains on the back of domestic market recovery to reach eighth globally, its best showing ever. Overall, the ecosystem is strong, and we’re seeing many niche and long tail players eking out respectable gains.”

“In terms of revenues, significant share gains are being made by really only a handful of familiar names – Samsung, JBL and to a lesser extent Xiaomi. This is partly because of out-performance in China, where there is a strong ecosystem of smaller budget brands,” observes Lee. “Despite this expansion, as well as declines in the US, the sub-$100 and premium markets continue inching towards parity in terms of volume. This trend is likely to be accelerated by Apple in the coming months, and I wouldn’t be surprised if the premium segment pushes past 50% in the second half.”