Back in 2014, when I reviewed the emerging wearables market, I suggested that the sector with the greatest potential would be hearables. Over the intervening two years it has seen intense activity. Over $45 million has been pledged in crowdfunding campaigns for earbuds and stereo headphones from almost a quarter a million backers. The value of sales of wireless headsets has overtaken that of wired headsets and now Apple has added momentum by removing the 3.5mm jack on the iPhone 7, as well as launching their own earbud – the Airpod.
One of the key reasons hearables are doing so well compared to other wearable sectors is because they don’t need to work out what to do with the data they generate. Every other wearable is a slave to the treadmill of quantitative feedback, where it needs to make the data it produces compelling, or else risk being consigned to the drawer of doom. Hearables are bought for consuming existing content in the form of music or videos, giving apps developers much more time and freedom to play with the accompanying data. That is a massive advantage over anything that you wear on your wrist.
I’ve just published a report on the hearables market which takes these new developments into account. It shows a growing opportunity, even greater than I’d suggested two years ago, which could rise to sales of almost $45 billion in 2020. You can download the report – The Market for Hearable Devices 2016-2020 here.