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The diversification of the earphone market reflects users' varied demands for sound quality, usage scenarios, comfort, price, and functionality. This diversity is evident in various aspects such as connection types (wired, wireless, true wireless), wearing styles (in-ear, over-ear, ear-hook, ear-clip, glasses-style), insertion methods (in-ear, semi-in-ear, on-ear, open-ear), and conduction methods (air conduction, bone conduction). These classifications help dissect and analyze the segmented markets within the earphone industry, shedding light on the trends and how brands and products adapt to the specific needs of different user groups.

Significant Changes in the True Wireless Earphone Market, Decline in In-Ear Market Share

The true wireless earphone market is undergoing significant changes, particularly with in-ear models. According to Sandalwood's China e-commerce market data, the market share of in-ear-air conduction true wireless earphones dropped to 30.8% in the first half of 2024, down from 37.2% in the same period of 2023, with a sales growth rate of -8%.

Meanwhile, the market share of semi-in-ear-air conduction true wireless earphones was 17.4% in the first half of 2024, slightly below 18.5% in 2023, with a growth rate of -5%.

Although in-ear and semi-in-ear true wireless earphones still dominate the market, their growth rate is showing a negative trend.

The Rise of Open-Ear Earphones: Increase in Ear-Hook and Ear-Clip Products

At the same time, new open-ear earphone products are emerging, expanding user scenarios and options. Open-ear earphones are rapidly gaining traction. According to Sandalwood's China e-commerce market data, ear-hook and ear-clip true wireless earphones have shown significant growth in both market share and sales. Specifically, ear-hook - open-ear-air conduction true wireless earphones saw their market share increase dramatically from 2.9% to 9.8%, with a sales growth rate of 280%. Their comfort and open design reduce fatigue from long-term wear, making them highly attractive to users seeking comfort.

Similarly, ear-clip - open-ear-air conduction true wireless earphones saw their market share rise from 1.8% to 3.0%, with an 82% growth rate, gradually gaining market recognition.

Additionally, ear-hook - open-ear-bone conduction true wireless earphones saw their market share increase from 1.7% to 5.1%, with a growth rate of 232%, demonstrating significant growth potential.

The demand for open designs and comfortable wearing experiences is driving the market towards new earphone formats.

How AI is Transforming True Wireless Earphones

The rapid development of true wireless earphones goes beyond just innovation in form factors; artificial intelligence (AI) is fundamentally transforming their technology and user experience, turning them into highly intelligent AI terminals rather than mere audio device.

In terms of functionality, AI integration enhances features like active noise cancellation and adaptive noise control, allowing users to enjoy clear calls and music even in very noisy environments. AI-driven call noise reduction precisely filters out background noise, ensuring call clarity.

In terms of connectivity, true wireless earphones are increasingly integrating into broader technology ecosystems, seamlessly connecting with smartphones, smartwatches, and smart home devices. This integration supports multi-point connectivity, enhances multitasking capabilities, and improves overall convenience and efficiency.

In terms of intelligence, earphones are leveraging AI models for more natural and smooth voice interactions. Users can control the earphones and connected smart devices with simple voice commands, such as answering calls, sending messages, and playing music. Additionally, with sensor technology, earphones can track health and activity data, like heart rate and steps, providing real-time health monitoring and feedback, making them powerful tools for personal health management.

AI is driving the transformation of earphones from traditional audio devices to comprehensive smart life assistants.

The Traditional Wireless Earphone Market: Unique Appeal of Over-Ear and Neckband Styles

In the traditional wireless earphone market, over-ear and neckband wireless earphones each have unique advantages and continue to hold significant positions. Over-ear - on-ear - air conduction wireless earphones remain market leaders, with their market share slightly declining from 7.5% to 7.4%, but with a growth rate of 10%. Their excellent noise-canceling capabilities make them ideal for office and home use.

In contrast, neckband - in-ear - air conduction wireless earphones saw their market share decrease from 5.0% to 4.7%, with a growth rate of 3%. Despite the decline in market share, neckband earphones are highly valued for their portability and stability, performing exceptionally well for sports enthusiasts and commuters, especially in running and fitness scenarios.

In comparison, neckband - open-ear - bone conduction wireless earphones experienced a market share drop from 2.3% to 1.0%, with a growth rate of -53%. This category is currently facing challenges from the rise of new open-ear earphones.

High-Fidelity Audio Enthusiasts: Wired Earphones Still Hold Unique Value 

Despite the ongoing advancements in digital audio and wireless technology, traditional wired earphones continue to hold unique value and significance in the market.

Specifically, the market share of in-ear - air conduction wired earphones decreased from 6.5% to 5.6%, with a growth rate of -4%. The market share of semi-in-ear - air conduction wired earphones dropped from 3.2% to 3.0%, with a growth rate of 4%. This trend reflects a growing consumer preference for portability and wireless convenience, leading to a gradual decline in the market share of traditional wired earphones. Similarly, the market share of over-ear - on-ear - air conduction wired earphones decreased from 4.8% to 4.0%.

Despite the shrinking market share, wired earphones still offer significant advantages in sound quality and stability. For professional audio workers and music enthusiasts, wired earphones provide high-fidelity sound and stable connectivity that wireless earphones struggle to match. This high-quality audio output is crucial in professional fields like recording, mixing, and production. Therefore, while wireless earphones are becoming the market mainstream due to their convenience, wired earphones maintain their unique value in terms of sound purity and reliability, especially among users who prioritize lossless audio quality and stability.

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