Overview: In Q1 2025, TWS devices recorded a 5% YoY growth in their global sales, driven by replacement demand in advanced markets and robust new demand in emerging markets. Looking ahead, replacement demand and cost-effectiveness are expected to drive this market, and in this regard, Apple and Xiaomi are expected to continue showing strong performance. We expect the market to keep growing till 2028 mainly due to cost-effective products under $25 absorbing new demand, especially in emerging economies.
The TWS market’s sales volume is expected to increase by 3% YoY in 2025. Economic instability is expected to further slow the growth of the TWS market, and as a result, the growth in 2025 is likely to fall short of previous projections. In particular, the transition from wired to wireless earphones (TWS) appears to be largely complete in major developed countries. Factors such as longer device lifespans and a lack of groundbreaking innovation are also contributing to the slowdown in market growth. However, replacement demand still exists in emerging markets, primarily driven by low-cost products. Moreover, features like real-time AI translation, healthcare applications, and the natural replacement cycle suggest that the market is unlikely to contract before 2028.