The earphones and headphones market in Latin America is expected to cross USD 3 billion by 2024, growing at a CAGR of 10% during the forecast period. Earphones have undergone an array of transformations in terms of technology (wired headphones to truly wireless), appearance and design, sound outputs, connectivity, and portability. The increasing expansion of IoT and AI is increasing earphones capabilities and functionalities significantly. Similarly, the integration of health sensors into earphones and headphones is likely to transform earphones into multifunctional modern gadgets. Significant technological advancements in wireless products such as SKAA, Bluetooth, Infrared, and Wi-Fi are driving the demand for high-fidelity headphones.
The convergence of smart headphones and hearing solutions is expected to gain traction in the future. In 2014, Apple licensed a proprietary variant of the Bluetooth Smart protocol for hearing-aid manufacturers, thereby allowing them to build products that can stream voice and music from an iPhone as well as operate as a hearing aid. Therefore, technological enhancements in the earphones and headphones market in Latin America are expected to drive substantial growth during the forecast period.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - DYNAMICS
Almost 39% of mobile buyers in the age group of 18−25 years are looking for the best audio output and earphones capabilities.
As earphones have a short replacement cycle, rising disposable incomes and growing interest in music have reduced the cycle further. People are increasingly becoming tech-savvy and are looking for headphones that have the latest features.
Further, the headphone market in Latin America is witnessing collaborations between smartphone manufacturers and earphone developers. In 2014, OnePlus and JBL entered an alliance for special edition earphones, which included a set of JBL E1+ earphones and a special edition version of the OnePlus One.
Several IT firms are working to develop devices that help in language translation on a real-time basis. Google, Microsoft, iTranslate, SayHi, WayGo, TripLingo, Speak & Translate, and Papago are a few prominent language translators for mobile applications.
Google launched its Pixel range of earbuds that can identify 40 languages and help the user to communicate with speakers of another language. Similarly, Waverly Labs integrated language translation feature as an add on to true wireless headphones under the brand name, Pilot. The products received a massive pre-order of more than 27,000 units.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - SEGMENTATION
This market research report includes a detailed segmentation of the market by
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - TECHNOLOGY
The earphones and headphones market in Latin America by technology is categorized into wired, wireless, and truly wireless. The wired earphones segment dominated the headphone market in Latin America in 2018.The segment accounted for around 46% and 60% in terms of revenue and volume, respectively.
The sound quality offered by wired headphones is better as there is no compression for the transmission of audio signals from the device to the headphone. However, the technology used for wired headphones has advanced, and several models offer high-fidelity sound at relatively affordable prices. The demand for wired headphones is due to low price, low-brand loyalty, easy availability, and easy handling. They are available with 3.5 mm jack, lightning port, and type-C port.
The wireless earphones and headphones market in Latin America has observed tremendous growth due to the rise in the internet. These headphones offer top-class sound quality and hassle-free movability to the user. Most wireless earbuds use a 3.0 version, while the higher-end ones use Bluetooth 4.0, which considerably reduces noise distortion.
Truly wireless headphones are bliss for audiophiles. They comprise several technological advancements such as gesture recognition, active head tracking, biometric monitoring, 3D surround sound delivery, and onboard storage in. Truly wireless headphones can also be used as hearing aids as they integrate audio technology to amplify the sound during conversations.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - END-USER
The earphone market by end-user can be categorized into three major segments - entertainment, sports and fitness, and gaming. The entertainment segment dominated the earphones and headphones market in Latin America in 2018, with the highest market share of around 91% in terms of revenue. A significant number of consumers are also using sports headphones for fitness and gaming purposes.
The fast-evolving music industry and the growing trend of online music streaming have impacted the earphones and headphones market in Latin America immensely. Music enthusiasts worldwide are investing in high-end quality products to have a personalized and better-listening experience.
As the smart headphones segment holds the potential to become the central node of the connected world, vendors are upgrading their products, thereby increasing consumer demand in recent years. Wearable devices such as smartwatches, which constantly monitor and track the user’s vitals allow millions of consumers to maintain their fitness data at their fingertips.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - FEATURES
In terms of features, headphones can be categorized into smart and non-smart. Smart headphones connect the smartphone and other smart devices using wire-free technologies such as Bluetooth, NFC, and IR. Smart headphones have evolved from offering a style quotient to resolving real-time challenges. They are loaded with modern, advanced features such as virtual assistants, gesture recognition, biometric monitoring, voice controls, and language translation. The rising adoption of wireless headphones is driving the smart headphones market in Latin America, including wired and wireless headphones.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - PRODUCT TYPE
The earphones and headphones market in Latin America by product types can be classified into in-ear (wired, wireless, truly wireless), on-ear (wired and wireless), over-ear (wired and wireless). The in-ear wireless earphones segment is likely to dominate the market, growing at a CAGR close to 10% during the forecast period.
The transition from conventional earbuds to in-ear model ones has increased market shares of the in-ear earphones segment in Latin America rapidly. In-ear earphones are widely used due to several factors such as compactness, increased mobility, noise cancellation, and convenience.
On-ear earphones also known as supra-aural headphones fit on the top of the ear. They have gained popularity due to superior sound quality. They can be considered as a compact substitute for over-ear headphones. However, they are unable to reduce ambient noise, which can affect the hearing experience.
Over-ear headphones are built in such a way that the padding of the ear covers the entire ear, making an enclosed platform around the ear. It has created a buzz in the earphones and headphones market in Latin America due to high-fidelity sound feature. Also, the active noise cancelling headphones are likely to be demand in Latin America. Over-ear earbuds are safe for eardrum and highly used by music professionals.
LATIN AMERICA EARPHONES AND HEADPHONES MARKET - COUNTRIES
In 2018, Brazil occupied a significant portion of the market, accounting for 54% of the earphones and headphones market in Latin America. Mexico holds the second position, followed by Columbia and Peru. Brazil has the presence of all leading earphones brands, and users are opting wireless earbuds over wired earbuds.
In 2018, countries such as Mexico and Columbia witnessed substantial growth. The high adoption of laptops, smartphones, and smart wearable devices is the major growth drivers for demand for high-end earphones and headphones in Latin America. Asian vendors such as Sony have entered Mexico and are offering high-quality, innovative products. The earphones market in Chile is likely to grow at a CAGR of 8.25% during the forecast period. The consumers in Latin America are increasingly adopting on-ear and over-ear headphones. Headphones are fast becoming one of the most preferred accessories among youngsters.
Key Vendor Analysis
The use of smartphones and connected mobile devices to stream music or watch videos online is expected to increase demand for headphones. There is significant demand for specialized, high-end, better sound quality wireless headphones, which is fulfilled by specialized companies such as Bose, Sony, and Sennheiser. Many diversified companies such as Apple, Plantronics, and LG are also catering to improving market demand.
The Latin America earphones and headphones market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by Technology Type
- Truly Wireless
Market Segmentation by End-user Type
- Fitness and Sports
Market Segmentation by Feature Type
Market Segmentation by Product Type
Market Segmentation by Countries
- Rest of Latin America