According to a new report from Strategy Analytics, AirPods held an excessively large share of the global wireless headphone market by 2020.
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With sales of more than 300 million units, True Wireless Stereo (TWS) Bluetooth headphone sales grew by nearly 90 percent last year. Apple’s AirPods’ own almost half of the entire market, and the rest consist of a large number of companies with small shares.
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Despite Apple’s dominance, Strategy Analytics notes that its lead is shrinking as competition intensifies:
“Apple maintained a lead in the TWS segment in 2020, but its controlling share will shrink as competition intensifies. Xiaomi, Samsung and Huawei are expected to face strong competition in 2021,” said Ken Hyers, director of Strategy Analytics , said. “The TWS headphone market is already very crowded and despite a strong sales outlook, there will inevitably be consolidation in the coming years.”
It is expected that there is still ‘a lot of potential in the wider Bluetooth headphone market’, due to low penetration and a small installation base. According to Ville-Petteri Ukonaho, co-director of Strategy Analytics, “less than one in ten people own a Bluetooth headset worldwide, so there is still significant room for growth.” In addition, Strategy Analytics provides significant growth potential in the market as providers no longer merge wired headsets with new smartphones.