India Neckband Market Decline 13% YoY in Q1 2022 Report
Counterpoint, a global research and analysis firm, has released a report on India’s neckband market shipments for the first quarter (Q1) of 2022, indicating a 13% year-on-year (YoY) decline compared to Q1 2021. boAt led the market with a 25.7 percent share, a 4% YoY growth, followed by OnePlus and realme in second and third place, respectively.
According to the research firm, the decline was primarily due to high inventory, which was pushed into the channel in Q4 2021 ahead of the festive season. The INR 1,000-INR 2,000 price range captured 70% of the market, with OnePlus’ Bullets Wireless Z Bass Edition being the best-selling device in Q1 2022, followed by the boAt Rokerz 255 series and realme Buds Wireless 2 Neo.
Apart from the top three brands, Zebronics took the fourth spot, breaking into the top 5 for the first time, thanks to its Zeb-Lark and Zeb-Symphony products. Furthermore, due to the popularity of its Nerve and Flair models in the budget segment, Boult Audio grew 6x YoY and 8x QoQ. Other emerging brands in the market include Xiaomi, OPPO, Ptron, Hitage, Ubon, and Dizo.
The neckband market is expected to grow in the double digits in the coming years. Going forward, competition between the neckband and TWS segments is likely, as some users prefer neckbands for convenience during workouts.
Talking about the overall neckband market, Senior Research Analyst Anshika Jain said,
The popularity of neckband devices is increasing as users are upgrading from a wired ecosystem and also want an alternative hearable device. Like TWS, the India neckband market is dominated by local players, which captured around 58% share in Q1 2022. These players have focused on providing the emerging features at affordable prices, like voice assistance, gaming mode for low latency, gesture music controls and insta-charge technology. Besides, next-gen neckbands from top brands are coming up with increased total playback time, primarily focusing on the budget segment (INR 1,000-INR 2,000).
Looking at the forecast, Research Director Tarun Pathak said,
India’s neckband market holds tremendous potential. We estimate that this market will continue to grow in double digits in the coming period. We have also seen the entry of new players in this segment, which is expected to drive volumes in the second half of 2022. Domestic manufacturing is also likely to pick up due to the increase in the customs duty for wireless hearable products. The current penetration of domestically made products stands at 5%.