Growth Opportunities in the Global Professional Headsets Market, Forecast to 2030

Telecom Growth Opportunities in the Global Professional Headsets Market, Forecast to 2030

The Professional Headset Vendors Search for New Growth Opportunities as Market Transitions to Slow Growth

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11-Jul-2024
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Research Code: PFF7-01-00-00-00
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Growth Opportunities in the Global Professional Headsets Market, Forecast to 2030
Published on: 11-Jul-2024 | SKU: TE_2024_855

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The global professional headsets market is estimated to have reached $1.82 billion by the end of 2023, reflecting a decline of 13.2 percent over 2022 in terms of revenue. However, the unit shipment decline was much lesser than revenue, driven by relatively lower decline in unit shipment in PC USB and UCC segment.

Headsets demand in 2023 was impacted by elevate demand for Q1 2022, caused by backlog in 2021. It is absence of such a quarter in 2023 meant the market declined in 2023. The dip was also fueled by headsets price increase as brought in by leading vendors such as GN Audio and HP|Poly at the start of 2023.

The cordless headsets market declined in revenue for the first time in last four years. The decline was broadbase with high double digit decline in Cordless DECT headset segment and single digit decline in cordless Bluetooth headset segment. However, over-the-ear stereo headband, and true wireless categories segments grew in 2023.

However, the long term growth drivers such as use of software-based business communications and collaboration services will continue to drive growth during forecast period. We expect market to see slightly increase in average selling price, as the demand moves from wired to wireless and in anticipation of DECT headsets demand stabilizing from 2025 onwards. Growth is expected to come from PC USB and UCC headsets, cordless headsets, and headsets in office segments.

The future growth in headsets will also be influenced by expected new features such as dongle less Bluetooth, Active Noise Cancellation (ANC) in medium range headsets, AI-enabled noise-cancellation and speaker voice enhancements, and in general headsets that last longer on a single charge.

As part of this analysis, Frost & Sullivan has identified market drivers, restraints, competitive trends, and growth opportunities in the global professional headset market.

Through extensive primary and secondary research, this analysis provides headsets vendors and manufacturers with an in-depth perspective on the dynamics of a changing market. Frost & Sullivan expects that this analysis will provide vendors with valuable insights to accelerate their growth and expand their penetration opportunities within the headset marketplace.

Author: Shailendra Soni

Revenue forecast

The revenue estimate for the base year 2023 is $1.82 billion, with a CAGR of 6.8% for the study period 2023–2030

 

Revenue Forecast

 

The Impact of the Top 3 Strategic Imperatives on the Professional Headsets Market Industry

Transformative Mega Trends

Why

  • The Covid-19 pandemic reshaped how people work, giving rise to widespread remote work and uncertainties about when and what proportion of employees will return to the offices.
  • Amid equity and inclusion trends in the hybrid work era, companies are also becoming more conscious of the need for sustainability and are looking to consume products that are recyclable and made from recycled products.

Frost Perspective

  • It is important to offer headsets that are optimized for remote-location usage, but also for hybrid workers. Consequently, it is important to tailor headsets for new types of personas that have emerged since the pandemic.
  • Offer headsets made from recycled materials and include a sustainability angle in product propositions such as repairable headsets, responsible disposing/recycling of old headsets, minimal product packaging, and other eco-friendly initiatives.

 

Competitive Intensity

Why

  • The total headsets revenue grew by 53.5% in 2020 over 2019. This has encouraged several PC/computer vendors and PC accessories vendors to enter the headsets market.
  • Additionally, Tier-II vendors have upped their ante by offering DECT and Bluetooth headsets, thus challenging Tier-I players in the cordless headsets market.

Frost Perspective

  • Businesses have more headset options available to them than ever before, particularly in the low end of the market where there are several new vendors. Also, some vendors are aggressively targeting SMB segments, offering free samples to entice them to buy headsets.
  • Headset vendors need to continuously enhance their products by adding new features to differentiate from the competition. They should also consider launching entry-level headsets better fit for the SMB segment.

 

Disruptive Technologies

Why

  • The usage of software communications and collaboration services continues to grow year after year, displacing old technology and reshaping devices and their connectivity capabilities.
  • Increasing dominance of Microsoft Teams in the enterprise and SMB segments is driving an evolution in communications solutions’ deployment and consumption models.

Frost Perspective

  • Microsoft Teams certification has become a key criterion in headset purchase decision. As such, it is essential to offer headsets certified for Teams and other leading collaboration platforms.
  • Offer headsets that integrate features offered by software communications platforms and deliver tangibly superior performance compared to non-certified devices.

 

Scope of Analysis

  • This research service analyzes the global professional headset market.
  • Professional headsets include corded and cordless headsets that are used in conjunction with enterprise communications endpoints integrated with the rest of the enterprise communications infrastructure (premises-based or hosted/cloud-based call control and conferencing systems).
  • Shipments are based on units of headset tops.
  • Revenue includes headsets plus related infrastructure such as amplifiers, direct connect cables, digital adapters, charging base stations, lifters, headset software and other headset accessories.
  • Revenue represents manufacturers’ sales of professional headsets to service providers, distributors, retailers, resellers, original equipment manufacturer (OEM) partners, and other distribution channels, as well as direct sales to enterprise customers.
  • Primary and secondary information, in conjunction with internal information databases, and hands-on product usage has been used to analyze the market and provide the observations and conclusions in this study.
  • Any previous-year(s) market-size and market-share estimates, if revised, are updated in this study.
Scope  
Geographic Coverage Global
Study Period 2020–2030
Base Year 2023
Forecast Period 2024–2030
Monetary Unit US Dollars
Regions Covered North America, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC), and Latin America (LATAM)

This analysis covers the following headset categories:

  • Corded registered jack (RJ) professional headsets for desk phones, also known as corded RJ headsets. These may also be quick-disconnect (QD) headsets with RJ connectors.
  • Corded PC USB and unified communications and collaboration (UCC) professional headsets for PC-based software communications, also known as corded PC USB and UCC. These may also be QD headsets with USB connectors.
  • Single-, dual-, or triple-connectivity digital enhanced cordless telecommunications (DECT) professional headsets for desk phones, PC-based software communications, and/or mobile communications. Variants include:
    • DECT RJ, connecting only to desktop phones;
    • DECT PC, connecting only to PCs;
    • DECT RJ + PC, offering dual connectivity to desktop phones and PCs; and
    • DECT RJ + PC + mobile, offering triple connectivity to desktop phones, PCs, and mobile phones.
  • Frost & Sullivan also groups DECT PC headsets, DECT RJ + PC headsets, and DECT RJ + PC + mobile headsets into a single category called DECT PC USB and UCC headsets to differentiate products that can connect to PC communications versus DECT RJ devices.
  • Bluetooth professional headsets for mobile communications and PC-based software communications via a USB dongle, also known as corded Bluetooth PC USB and UCC.

 

Segmentation

Frost & Sullivan classifies the professional headset market in three different ways

  • PC USB and UCC headsets versus RJ headsets;
  • cordless headsets versus corded headsets; and
  • headsets used in contact centers versus headsets used in offices.

These three distinct classifications should not be considered additive (Classification 1 + Classification 2 + Classification 3 does not equal the total size of the market). However, categories inside each classification do add up to the total professional headset market size (e.g., cordless headsets + corded headsets equals total market size).

Unit shipment and revenue forecasts are provided for each of these six different headset categories, in addition to a total professional headset unit shipment and revenue forecast.

In addition to the forecast data, this study also provides specific 2022 and 2023 market sizing data per professional headset sub-category; wearing style; global regions; and active noise-cancelling capabilities; and per professional headset vendor (vendor revenue market shares).

 

Segmentation (continued)

Corded Headsets

• Corded headsets are the most common type of professional headsets. They connect to business phones through amplifiers or Direct Connect Quick Disconnect (bottom) cables. Typically, the Direct Connect cable plugs into either a handset port (RJ9/RJ10/RJ22), a dedicated modular headset port or a 2.5 mm headset jack located on the side of the endpoint. USB corded headsets (PC USB corded headsets), on the other hand, connect to PCs and certain types of Internet Protocol (IP) desktop phones for IP communications. The study does not include general consumer-grade headsets with 3.5 mm headset jacks.

Cordless Headsets (Wireless)

• Certain cordless headsets connect to a business phone or a PC via a base station that connects through either a handset port, a modular headset port, or a USB port in the PC or desktop phone (PC USB cordless headsets). Using either Bluetooth wireless or DECT radio technology, the headset can transmit up to a 300-foot range (between base station and headset). Other cordless headsets connect to mobile devices via Bluetooth and to a PC via a USB dongle.

Professional Headsets in the Contact Center Space

Because most professional headset vendors do not have clear visibility into how much of their total professional headset shipments and revenues are generated by the contact center (CC) space, Frost & Sullivan estimates this segment based on the following formula:

• All corded RJ headset shipments and revenues + all cordless RJ headset shipments and revenues + all customer service-centric branded corded products produced by professional headset vendors (e.g., Poly’s SupraPlus/EncorePro lines and Jabra’s Biz/Engage line) + all accessories deployed in the contact center space (adapters, cables, USB enablers, etc.)

• While unit shipments depict headset tops, revenues include tops plus all related headset infrastructure (e.g., amplifiers, direct connect cables, digital adapters, charging base stations, lifters, headset software and other headset accessories).

Professional Headsets in the Office Space

Frost & Sullivan estimates professional headset shipments and revenues in the office space by including:

  • All office-centric branded PC USB and UCC corded products produced by professional headset vendors (e.g., Poly’s Blackwire line and Jabra’s Evolve line) + all cordless PC USB and UCC professional headsets.

PC USB and UCC Headsets

  • In this analysis, Frost & Sullivan discusses UCC headsets (headsets certified to work with different UCC applications) and professional PC USB headsets together in a category called “Professional PC USB and UCC headsets” for the following reasons:

    • Most professional PC USB headsets work with the majority of online voice services.
    • Most professional PC USB headsets reported by Frost & Sullivan have in-line/on-headset controls for volume, mute, and answer/end calls.
    • Many of the reported PC USB headsets are certified to work with major UCC vendor applications.
    • Professional headset vendors lack concrete visibility whether a headset is being deployed in an enterprise UCC environment or with any other type of online voice service not necessarily connected with the business call-control system.
  • Cordless Bluetooth PC USB and UCC headsets use Bluetooth to connect to laptops/desktops. These headsets come in several form factors with the on-ear with headband type of headset being the most popular. Other form factors include over-the-ear with headband, where the ear is completely covered by headset cups; in-ear mono without headband (single-ear buds worn on one ear, with another ear open); and finally, the neckband form factors (where the band sits on neck with wires from the neckband connecting to the earbuds that are worn in both the ears).
  • Sales of consumer PC USB headsets and 3.5 mm headsets are excluded from the study, except in the case of Logitech whereby the vendor includes consumer PC USB and 3.5 mm headset sales designed exclusively for work purposes.
  • The study provides a forecast of PC USB and UCC headsets against RJ headsets or headsets (both corded and cordless) that only connect to desktop phones.

 

Competitive Environment

Number of Competitors Approximately 50
Competitive Factors Global presence; product range; product quality; product features and capabilities; product compatibility; pricing; connectivity options; talk time and wireless range; brand awareness
Key End-user Industry Verticals Banking and financial services industry, IT industry, and contact centers
Leading Competitors GN Audio, HP | Poly, Logitech, EPOS, and Yealink
Revenue Share of Top 5 Competitors (2023) 95.0%
Other Notable Competitors Cisco, JPL Telecom and Headsets.com
Distribution Structure Mostly indirect sales, with a shift to direct sales due to more e-tailing
Notable Acquisitions and Mergers No notable mergers or acquisitions in 2023

 

Key Competitors

  • ADADASOUND
  • BEIEN
  • Cisco
  • Dasan Electron
  • DELL
  • EPOS
  • GN Audio
  • HP | Poly
  • JPL Telecom
  • Lenovo
  • Logitech
  • Microsoft
  • OROSOUND
  • Yealink
  • Chameleon Headsets
  • Cyber Acoustics
  • Headsets.com
  • Koss Corporation
  • Mpow
  • Smith Corona
  • Starkey Headsets
  • VTech
  • Agent
  • Alcatel-Lucent Enterprise
  • Axtel
  • Connected Essentials
  • Dacomex
  • freeVoice
  • OneDirect
  • Snom
  • Syntech
  • Vseven
  • ADDCOM
  • CALLTEL
  • Hion
  • Nagatsuka
  • Telekonektors
  • VBeT Electronics
  • Felitron
  • PhoneTech
  • Top Use
  • Zox Telecom

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Professional Headsets Market Industry

Scope of Analysis

Scope of Analysis (continued)

Scope of Analysis (continued)

Segmentation

Segmentation (continued)

Segmentation (continued)

Competitive Environment

Key Competitors

Growth Metrics

Growth Drivers

Growth Restraints

Forecast Considerations

Revenue and Unit Shipment Forecast

Revenue and Unit Shipment Forecast by Configuration Type

Revenue and Unit Shipment Forecast by Headset Type

Revenue and Unit Shipment Forecast by End-user Type

Percent Revenue by Product Category

Percent Revenue by Wearing Style, Cordless Bluetooth PC USB and UCC Headsets

Percent Revenue by Connectivity, Cordless DECT Headsets

Percent Revenue by Active-Noise-Cancelling (ANC) Headsets

Percent Revenue by Region

Revenue and Unit Forecast Analysis

Revenue and Unit Forecast Analysis (continued)

Revenue Forecast Analysis by Region

Pricing Trends and Forecast Analysis

Revenue Share

Revenue Share Analysis

Revenue Share Analysis (continued)

Growth Opportunity 1: Active Noise Cancellation Headsets

Growth Opportunity 1: Active Noise Cancellation Headsets (continued)

Growth Opportunity 2: Cloud Calling, Meetings, and Team Collaboration Services

Growth Opportunity 2: Cloud Calling, Meetings, and Team Collaboration Services (continued)

Growth Opportunity 3: True Wireless (TWS) Headsets

Growth Opportunity 3: True Wireless (TWS) Headsets (continued)

Growth Opportunity 4: Cordless Bluetooth Over-the-Ear Headsets

Growth Opportunity 4: Cordless Bluetooth Over-the-Ear Headsets (continued)

Best Practices Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer


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The global professional headsets market is estimated to have reached $1.82 billion by the end of 2023, reflecting a decline of 13.2 percent over 2022 in terms of revenue. However, the unit shipment decline was much lesser than revenue, driven by relatively lower decline in unit shipment in PC USB and UCC segment. Headsets demand in 2023 was impacted by elevate demand for Q1 2022, caused by backlog in 2021. It is absence of such a quarter in 2023 meant the market declined in 2023. The dip was also fueled by headsets price increase as brought in by leading vendors such as GN Audio and HP|Poly at the start of 2023. The cordless headsets market declined in revenue for the first time in last four years. The decline was broadbase with high double digit decline in Cordless DECT headset segment and single digit decline in cordless Bluetooth headset segment. However, over-the-ear stereo headband, and true wireless categories segments grew in 2023. However, the long term growth drivers such as use of software-based business communications and collaboration services will continue to drive growth during forecast period. We expect market to see slightly increase in average selling price, as the demand moves from wired to wireless and in anticipation of DECT headsets demand stabilizing from 2025 onwards. Growth is expected to come from PC USB and UCC headsets, cordless headsets, and headsets in office segments. The future growth in headsets will also be influenced by expected new features such as dongle less Bluetooth, Active Noise Cancellation (ANC) in medium range headsets, AI-enabled noise-cancellation and speaker voice enhancements, and in general headsets that last longer on a single charge. As part of this analysis, Frost & Sullivan has identified market drivers, restraints, competitive trends, and growth opportunities in the global professional headset market. Through extensive primary and secondary research, this analysis provides headsets vendors and manufacturers with an in-depth perspective on the dynamics of a changing market. Frost & Sullivan expects that this analysis will provide vendors with valuable insights to accelerate their growth and expand their penetration opportunities within the headset marketplace. Author: Shailendra Soni
More Information
Deliverable Type Market Research
Author Shailendra Soni
Industries Telecom
No Index No
Is Prebook No
Keyword 1 Professional headsets market
Keyword 2 Headset technology innovations
Keyword 3 headset market
Podcast No
Predecessor PE43-01-00-00-00
WIP Number PFF7-01-00-00-00