Indonesia Headphones and Earphones Market Research Report: Forecast (2024-2030)

Market Definition

Headphones and Earphones are wearable electronic devices designed for listening to audio content, such as music, podcasts, or spoken words, in a private and immersive manner. Headphones consist of two earpieces connected by a band or other structure that rests over the head or fits snugly in or over the ears. They can be wired, connected to an audio source through a cable, or wireless, using technologies like Bluetooth to transmit audio signals from a device. Headphones vary in style, size, and features, offering different levels of audio quality, noise cancellation, comfort, and portability to cater to a wide range of user preferences and needs.

Market Insights & Analysis: Indonesia Headphones and Earphones Market (2024-30):

Indonesia's Headphones and Earphones Market size is expected to exceed USD 1 billion by 2030 and it is anticipated to grow at a CAGR of around 4.52% during the forecast period, i.e., 2024-30. The market growth is attributed to the rising adoption of smart devices, the growth of digital entertainment, technological innovations, and surging mobile penetration. The extensive integration of consumer electronics in both office and home setups created a positive impact on the industry growth in recent years. Wireless technology has become increasingly accessible, and the reliance on physical connections diminishes. In response to this trend, manufacturers have developed wireless technologies that enable the production of headphones with exceptional audio quality, thereby fostering overall market size.

Moreover, digital entertainment such as live-streaming apps and gaming platforms in the country is booming, owing to the large, young & tech-savvy population, and increased internet penetration. According to the Indonesian Internet Providers Association (APJII) in 2022, internet users in Indonesia increased from around 175 million users to about 220 million users. This remarkable growth in internet users indicates a broader trend of increased digital engagement among the population. The expanding digital entertainment landscape, marked by a surge in online streaming and gaming activities, contributes to the demand for audio accessories, such as headphones & earphones for immersive experiences.

Furthermore, growing technological advances in headphones & earphones are driving rising consumer demand for high fidelity and style features like Near-Field Communication (NFC) and Active Noise Cancellation (ANC) represent cutting-edge innovations intended to elevate users' listening experiences and facilitate seamless connections to their music players. Such innovations have boosted the headphones & earphones market growth in recent times.

Further, manufacturers like Xiaomi, BBK Electronics, and Apple Inc., are increasingly focusing on the production & launch of technologically advanced feature headphones & earphones such as micro speakers, voice assistant commands, etc., in the coming years. These advancements are expected to enhance the Indonesia Headphones and Earphones Market size in the forecast period.

Indonesia Headphones and Earphones Market Driver:

Growing OTT Consumption to Escalate the Market Growth – During the historical period, OTT consumption has skyrocketed in Indonesia owing to the large presence of Gen Z and millennials, content localization, and affordable data plans. Gen Z (born between 1997 and 2012) is currently the biggest generation group in Indonesia with around 27.94% of the total population or 74.93 million people according to the IDN Times in 2022. This young demographic population drove the demand for digital content in the country owing to tech-savvy preference, the presence of diverse content, and subscription flexibility offered by the OTT platform companies. This higher consumption of OTT platforms by the Gen Z population has increased the requirement for headphones and earphones in the past years for personalized viewing experience, content streaming on the phone, enhanced audio quality, etc.

Moreover, the fixed broadband penetration in the country is rising due to the rollout of infrastructures by telecom companies such as Telkom, and government initiatives. According to the World Bank, in 2022, Indonesia had about 4.8798 fixed broadband subscriptions per 100 people. This was about a 5.21% increase from 2021 when the penetration rate was around 4.54%. This growing penetration is expected to boost streaming services and increase screen time in the coming years. This would turn into a higher requirement for headphones & earphones.

Indonesia Headphones and Earphones Market Opportunity:

Rising Roll Out 5G to Expand the Market Size – Indonesia has witnessed a rollout of 5G services in the country in recent years, but these services are in limited areas. As a result, major telecom companies like Telkomsel, Indosat Ooredoo, and XL Axiata have been involved in testing and rolling out 5G in key cities. For instance, in 2023, Telkomsel renewed its contract with Ericsson to expand its 5G network in Indonesia.

Additionally, the government has further expressed its commitment servicesto create a conducive environment for 5G investment. Consequently, these factors estimated to heighten the roll out of 5G in the coming years, this would lead to the increased bandwidth. As the speed of the internet increases video streaming & multiple mobile gaming activities in the country are anticipated to boost, as these activities grow there will be the higher adoption of headphones & earphones in the future for immersive gaming & video experiences.

Indonesia Headphones and Earphones Market Challenge:

Surging Menace of Counterfeit and Fake Products – The escalating menace of fake and counterfeit goods poses a substantial threat to the expansion of the market. Counterfeit earphones and headphones often utilize substandard materials, resulting in inferior quality and durability. Despite their shortcomings, these counterfeit products are favored, particularly in emerging economies like Indonesia, due to their significantly lower prices compared to authentic alternatives.

The presence of counterfeit in Indonesia is due to cheap labor costs, materials, inefficient customs measures at the borders, and bad faith applications for foreign trademarks by local companies.  Consequently, the prevalence of counterfeit items is anticipated to impede the growth of the Indonesia Earphones and Headphones Market throughout the forecast period.

Indonesia Headphones and Earphones Market Trend:

Growing Adoption of Active Noise Cancellation (ANC) Headphones & Earphones – Indonesia has witnessed increasing adoption of ANC headphones & earphones during 2022. This is due to the surged demand for high-quality sound and immersive audio experiences, coupled with the rising popularity of portable audio devices. Further, the growing number of individuals working from home has also boosted the market, as more people seek to create a peaceful work environment with ANC earphones. To cater to this trend, biggest market players such as Realme, Huawei, and Samsung are increasingly introducing ACN earphones & headphones to the country. For instance, in 2023, Realme launched a new earbud “T300”, which supports 30db active noise cancellation features.

Moreover, the integration of smart features such as voice assistants, touch controls, and fitness tracking capabilities in ANC earphones is attracting a wider consumer base in the country and is estimated to boost the Indonesia Earphones & Headphones Market in the forthcoming periods.

Indonesia Headphones and Earphones Market (2024-30): Segmentation Analysis

The Indonesia Headphones and Earphones Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. As per the analysis, the market has been further classified as:

Based on Connectivity:

• Wired
• Wireless

Wireless headphones & earphones to hold the major share of the market in the forthcoming years owing to the growing gaming industry, health & fitness trends, rising disposable income, etc. During 2019-2022, the gaming industry has witnessed surging growth due to rising collaborations among gaming companies, e-sport development, and government initiatives. For instance,

• In 2022 GOX, the first Indonesian game streaming platform, signed a memorandum of understanding (MoU) for a four-year collaboration with Tencent Cloud.

The agreement aims to empower Indonesia’s growing e-sports and live-streaming ecosystem. Consequently, these factors boosted the gaming industry in the country in recent years and contributed to higher requirements of wireless headphones & earphones for immersive gaming experience, multi-player & online gaming, etc.

Moreover, stress & mental awareness, surging social media influence, shift towards preventive healthcare, etc., are estimated to boost the health and wellness habits among the public in the coming years. As the emphasis on health and fitness continues to rise, the demand for wireless earphones & headphones designed specifically for workouts is estimated to grow in the forecast period. Further, these headphones provide unrestricted movement & sweat resistance features for fitness enthusiasts, which could make most favorable option over wired headphones & earphones.

Based on Sales Channel:

• Online
• Offline
  • Exclusive
  • Multi-Brand

The online segment is projected to hold major share in the forecast period due to the augmented use of digital technology, online transactions, and the growth of social commerce. The adoption of digital technology by the public has been on the rise in recent years propelled by the various government initiatives, improved internet accessibility, and rise in the adoption of digital payment. According to the World Bank in 2020, the proportion of Indonesian adults with access to the internet increased from around 13 % in 2011 to about 51% in 2019.

This exponential growth in digital technology adoption has reshaped consumer habits and shopping patterns in recent years. Consequently, the online segment has experienced a substantial surge in market share owing to the convenience and ease associated with online shopping, amplified by the vast array of options available on digital platforms.

Moreover, the growing social commerce involves the buying and selling of physical goods through social media platforms such as TikTok, BBM, Facebook, Instagram, Line, and WhatsApp. This is further estimated to boost the online sales of headphones and earphones in the coming years.

Gain a Competitive Edge with Our Indonesia Headphones and Earphones Market Report

1. Indonesia Headphones & Earphones Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Indonesia Headphones & Earphones Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.