Headphone Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) November 01, 2014
Many positive developments are taking place in the Headphone Manufacturing industry. Even though imports from Asia mainly satisfy domestic demand for headphones, the domestic industry has found many opportunities to grow over the past five years as the retail demand for premium headphones surged during this period. Additionally, the rising direct and hidden costs of producing in China have incentivized many small- to medium-sized companies that design and market headphones to source their products from the United States, which has injected further positive momentum into the industry. Consequently, IBISWorld expects industry revenue to grow slightly over the five years to 2014.
IBISWorld estimates that the retail demand for headphones is anticipated to grow markedly over the five years to 2014. Additionally, according to NDP Group, consumers have shown an increasing willingness to pay premium prices for high-end headphones, with the sales of headphones priced above $ 100 doubling in 2011. This trend has also benefited domestic manufacturers because while they cannot compete with imported items on price, they have actively sought quality-conscious consumers seeking high-end products with premium sound quality.
IBISWorld expects the Headphone Manufacturing industry to grow more rapidly over the next five years. According to IBISWorld Industry Analyst Zeeshan Haider, "As the economy improves, consumer purchasing power is expected to increase, which will translate into higher consumer spending." Additionally, smartphone penetration is anticipated to rise along with the sales of video game consoles. These factors will further boost the demand for headphones, which is expected to notably increase industry revenue over the five years to 2019.
This industry has a low level of market share concentration. Most domestic manufacturers do not mass produce their products and instead aim to target niche markets that are willing to pay premium prices for high-end headphones. The top four companies in this industry are expected to account for a small percent of industry revenue in 2014. "Since most of the domestic demand for headphones is satisfied by imports and most premium brand names such as Bose and Beats do not manufacture their products in the United States, it is hard for domestic manufacturers to gain a large share of the market," says Haider. Market share concentration is expected to remain low over the next five years, unless one of the former major companies in the industry, such as Bose, bring their production back to United States.
Important trends that will drive the industry over the next five years include mass customization of headphones by using 3D printing technology and an increase in the number of quality-conscious consumers who are expected to be able to afford premium headphones due to rising incomes. However, in spite of the projected growth, domestic manufacturers are unlikely to make much headway in selling their products to the mass market because of significant cost advantages enjoyed by Asia. In 2019, imports are still expected to satisfy a large majority of domestic demand for headphones.
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IBISWorld industry Report Key Topics
This industry includes manufacturers of headphones, earphones, earbuds and noise-cancelling headphones in the United States. Headphones are connected to signal sources like audio amplifiers, radios, CD players or portable media players.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nationâs most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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