Canalys: Global AI personal audio device shipments reached 126 million units in Q3 2024, a year-on-year increase of 15%

According to the latest research from Canalys, the global smart personal audio market rebounded significantly in the third quarter of 2024, with total shipments reaching 126 million units, a year-on-year increase of 15%. This marks the third consecutive quarter of growth, continuing the recovery from the challenges faced in 2023. The growth was broad-based, with growth in every major sub-region. All major product categories achieved double-digit growth, highlighting the good prospects of the global market, with emerging open devices and mid-sized suppliers making a significant contribution to this positive momentum.

Jack Leathem, research analyst at Canalys, said: "The Indian market played a vital role in driving growth in Asia Pacific and globally, with shipments growing 51%, adding approximately 9 million units compared to the third quarter of 2023. TWS device shipments grew 47%, and wireless earphone shipments grew 65%, led by brands such as boAt and OnePlus. As inventory levels declined and consumer demand grew, boAt re-launched old but popular wireless earphone models. Both boAt and OnePlus launched a series of new devices with increasingly powerful features, focusing on enhanced audio quality and advanced features, including active noise cancellation (ANC). As a result, ANC-enabled devices reached a new peak and now account for 21% of the overall market in India, with 52% of OnePlus shipments including ANC functionality. This shift reflects a new phase in the Indian market, where consumers are increasingly seeking high-performance devices with advanced features."

“With the rise of health and fitness trends globally, open devices are a standout growth area in the third quarter of 2024,” said Cynthia Chen, research manager at Canalys. “Demand for open TWS and wireless earphones surged, with shipments in this category nearly tripling year-on-year to account for 6% of the total market. Open Wireless Stereo (OWS) devices were a key driver of this growth, led by specialty brands such as Shokz and Sanag. In addition, major vendors have also entered this segment, aiming to attract new consumer groups.”

Despite significant market expansion in North America and Western Europe, Mainland China remains the leader in open-frame device shipments, accounting for 59% of global share. These regions now account for 39% of Shokz shipments, up from 31% last year. This shift highlights the growing global appeal of open-frame devices, especially as consumers increasingly value audio solutions that fit their active outdoor lifestyles.

"Chinese audio brands are expanding rapidly in international markets, reflecting a strategic pivot to overseas markets to drive shipments and improve brand awareness amid fierce domestic competition. These brands are winning market share by launching entry-level products to attract consumers from white-label competitors," said Chen, stressing that this shift is part of a larger trend to improve product quality. However, as these brands establish a stable market share, their next challenge is to shift their focus to developing higher quality and more innovative products, a critical shift to maintain mid- to long-term competitiveness.

Leathem added: "As competition in the smart personal audio market becomes increasingly fierce, vendors must focus on technological innovation and unique designs to differentiate themselves. To stand out in this crowded market, vendors should prioritize advancements in core audio technologies, such as ANC and spatial audio, while introducing visually striking features. For example, some JBL models now offer touchscreen charging boxes, providing a unique interactive experience to improve usability. Bold color options, translucent casings and brand collaborations are also worth exploring to attract consumers and strengthen market position, which is critical to attracting consumer attention and strengthening footholds in new and mature markets."