IFA 2018: Audio Devices Become Smarter and Sound Better

From January to June 2018, GfK recorded total sales of €4.5 billion for the global audio devices market. Compared to the first half of last year, this is an increase of five percent.

However, there is still growth potential in smart devices with embedded voice assistants or high-performance features that enhance the listening experience. Depending on the innovation potential of the manufacturers, the developments varied in the different audio categories.

Total combined revenues of headphones and mobile stereo headsets grew by 26 percent, close to €2 billion. In total, 59 million units were sold. Europe (without CIS) and APAC accounted for more than 85 percent of the global turnover. Devices with Bluetooth technology grew their sales value by 80 percent and stood for 60 percent of the global turnover from headphones and headsets, up from 42 percent the year before. This development paves the way for devices compatible with the smartphone's voice assistant, integrating these in smart ecosystems.

Independent of the connectivity features, devices combining advanced technologies like active noise cancelling and true wireless, and where the headphones consist of two separate ear pieces, witnessed huge sales value growth. APAC was at the forefront of this technology in 2017 and kept its leading role in this segment. The region accounted for more than 75 percent of the turnover with these products. The advent of the high-performing headphones and headsets for €150 and more, manifested in a 15 percent increase on the average price.

Multiroom devices, which allow playing different songs in different rooms, grew by eleven percent. This accounted for 23 percent of the total turnover of audio home systems, radio devices, docking/mini speakers, tuners, amplifiers, receivers and loudspeakers. Devices to stream audio contents via Bluetooth or Wi-Fi are the standard today: 71 percent of the sales value originated from these products from January to June 2018.

Connectivity features are becoming increasingly important in the domain of in-car electronics as well. Bluetooth capable devices generated more than 50 percent of the turnover, with more and more products featuring technologies to easily connect and operate a smartphone in the car.

In the first six months of 2018, a total of 23 percent of the global audio sales value came from online sales, compared to 21 percent in the same period last year. Especially strong online sales can be found in Europe and Developed Asia, contributing with 27 percent and 24 percent online share respectively. In contrast to other categories, the increasing online importance does not influence the demand peaks throughout the year. The peak is still around Christmas time, not in November or on other online retailer events like Black Friday.