sandalwood

Abstract: In 2024, China's e-commerce market for headphones showed steady growth, with TWS earbuds performing exceptionally well. Sales reached 169 million units, a 10% year-on-year increase, accounting for 71% of the headphone market. The price segments of 100-200 RMB, 300-400 RMB, and 500-1000 RMB saw significant growth. In the market above 300 RMB, smartphone manufacturers account for nearly half, and the 1000-1500 RMB range holds over 70% of the market share. The ratio of TWS earbuds sales to smartphone sales remains stable at around 1.5, making TWS the most important accessory for smartphones. Leading smartphone manufacturers have a TWS accessory attachment rate of 21%, with significant potential for growth. With the support of AI technology, TWS earbuds now support various voice assistants, real-time translation, and other functions, making ecological collaboration and AI innovation the key drivers of growth.

TWS Earbuds Increase by 10% Year-on-Year, Three Major Price Segments Maintain High Growth Rates

The headphone category in China's e-commerce market continues to grow steadily. According to Sandalwood's China e-commerce data, the total e-commerce sales of headphones in 2024 reached 239 million units, a 7% year-on-year increase. Among them, TWS earbuds sold 169 million units, marking a 10% year-on-year growth, and accounting for 71% of the overall headphone market, an increase of 2 percentage points compared to 2023. Looking at the sales performance of TWS earbuds across various price segments, significant growth was seen in the 100-200 RMB, 300-400 RMB, and 500-1000 RMB ranges, with sales growth rates of 35%, 28%, and 23%, respectively.

Over 300 RMB Market: Smartphone Manufacturers Account for Nearly Half, High-End Segments Perform Especially Well

In the TWS earbud market above 100 RMB in 2024, Edifier continues to maintain its leading position, while smartphone manufacturers have significantly increased their market share. Huawei, Apple, and Xiaomi are all ranked among the top five in the market. Overall, the share of smartphone manufacturers in the TWS earbud market increased from 10% in 2023 to 12% in 2024, showing a 2 percentage point year-on-year growth.Looking at the price segment distribution, in the 300 RMB and above TWS earbud market in 2024, smartphone manufacturers' overall share approaches 50%. Specifically, in the 1000-1500 RMB range, smartphone manufacturers hold the highest share, exceeding 70%, and this share shows a continuous growth trend. In the price segment above 1500 RMB, smartphone manufacturers account for about 60%. In the 400-1000 RMB range, the share of smartphone manufacturers remains around 40%-45%, and in the 300-400 RMB range, smartphone manufacturers hold about 30%. In the 100-300 RMB range, smartphone manufacturers' share is around 20%, and this segment remains the main market for traditional headphone manufacturers.

TWS Earbuds Deeply Integrated with Smartphone Ecosystem, TWS Sales Steady at 1.5 Times the Sales of Smartphones

TWS earbuds and smartphones both belong to the consumer electronics sector, and their user bases and market cycles overlap significantly. According to Sandalwood's China e-commerce data, the sales ratio of TWS earbuds to smartphones from 2022 to 2024 were 1.47, 1.61, and 1.66, respectively, with TWS earbud sales consistently remaining at about 1.5 times the sales of smartphones. With advantages such as portability, wireless functionality, and smart features, TWS earbuds have become the most important accessory for smartphones. Major manufacturers actively adopt "smartphone + earbuds" bundle promotion strategies, offering package discounts through both online and offline channels to achieve cross-selling and drive continued growth in overall sales.

Top Manufacturers' TWS Accessory Attachment Rate Only 21%, Potential for Further Synergy Yet to Be Explored

According to Sandalwood's China e-commerce data, the attachment rate of TWS earbuds to smartphones for top smartphone manufacturers was 21% in 2024. By brand, Huawei has the highest ratio at around 50%. This is partly because Huawei's smartphone sales have not yet returned to their peak levels, and also due to a large demand for wearable products among its existing user base. OPPO follows with a ratio of about 25%, while Xiaomi, Apple, and vivo have attachment rates ranging from 15% to 20%, and Honor has a ratio of 10%. Overall, there is considerable room for improvement in the synergy between smartphone manufacturers' TWS earbuds and smartphone sales.

AI-Powered TWS: Multi-Voice Assistant Compatibility, Ushering in a New Era of Smart Earbuds

With the deep integration of AI technology in earbuds, AI-enabled TWS earphones are now compatible with multiple voice assistants (such as Siri, Xiao Ai, Xiao Yi, Doubao, Deepseek, etc.) for voice activation and interaction. Users can use voice commands to query information and perform automated tasks (such as booking tickets or meals) and leverage speech recognition and natural language processing algorithms for real-time multilingual translation. As remote meetings, online education, and multi-party voice interaction scenarios become increasingly common, TWS earbuds equipped with AI noise cancellation, voice enhancement, and real-time translation capabilities will play a key role in improving communication efficiency.