TWS headset has ushered in the industrial explosion stage

In 2016, Apple released the first generation of AirPods, officially opening the era of TWS headsets. After 4 years of vigorous development, TWS earbuds have experienced a product start from scratch, its market competition from Apple’s dominance to a statue “ a hundred schools of thought strive”, user experience from ridicule to a good and authentic journey, the entire industry from technology, business, consumer,education etc are continuously promoting the development of tws earphone. In 2020, the export of tws earbuds on the overall market have exceeded 600 million units, and the growth rate will continue to exceed 15% in the next 4 years. The total market shipments are expected to exceed 1 billion in 2024. As estimated , it will become the most popular items ,whose export shipment is only less than the smart phone.

WI capital, Zhuhai Advanced Integrated Circuit Research Institute and 52 Audio Network took 90 days to conduct in-depth research on all links in the TWS headset industry chain, including downstream brands, solution providers, and foundries, to upstream master chips and power supplies. Manufacturers of management chips, MCUs, sensors, silicon microphones, speaker, batteries, antennas, connectors, test equipment and other components and equipment have compiled the "2021TWS Headphone Industry White Paper" on the basis of a large number of detailed surveys and interviews, which is an industry leader Starting.

This report will decompose and analyze the TWS headset industry from five aspects, including industry overview, market overview, industry driving factors, development trend analysis and industry chain analysis. The first four chapters analyze the industry various aspects such as historical evolution, standard policy interpretation, market scale calculation, driving factor summary and development trend forecast; Chapter 5 disassembles TWS headsets, from the main 8 internal Starting with components and test equipment, the 9 key technical fields are sorted out, and analyzed one by one from major manufacturers and competition patterns, technical thresholds, and future development trends.

Throughout the history of TWS headset development

2014

The first TWS headset BRAGI Dash headphone starts crowdfunding

BRAGI, a brand from Germany, launched the Dash headphone true wireless headset through online crowdfunding on the kickstarter . This is the world's first TWS headset. The crowdfunding price starts at $179, which is approximately RMB 1160. The crowdfunding project caused an uproar. In a month and a half, 15,998 users participated and raised 3.39 million US dollars.

2016

The release of Bluetooth 5.0, marking the possibility of bilateral calls between the left and right ears of TWS headsets

In June 2016, in the early stage of the outbreak of the TWS headset market, the Bluetooth Technology Alliance launched the Bluetooth 5.0 version, which greatly promoted the maturity of TWS headset technology. The new Bluetooth 5.0 standard far exceeds the previous Bluetooth 4.2 version in performance. In terms of transmission capacity, Bluetooth 5.0 has a faster and longer transmission capacity in low-power mode, the transmission rate is twice that of Bluetooth 4.2, and the effective transmission distance It is 4 times that of Bluetooth 4.2, and the data packet capacity is 8 times that of Bluetooth 4.2. Bluetooth 5.0 technology has brought a subversive change to TWS headsets, making it possible for TWS headsets to make bilateral calls.

Apple's first true wireless headset AirPods is on sale

In December 2016, Apple's first true wireless headset AirPods was launched, officially opening the era of TWS headsets. From 2017 to 2020, AirPods shipments were 14 million/35 million/60 million/95 million units, with a compound annual growth rate of 58%. In 2020, Apple’s TWS headset shipments accounted for approximately the brand’s TWS headset market’s total shipments that year 38% of the amount.

2017

The first true wireless noise-canceling headphones appeared on the market

In September 2017, Sony WF-1000X, the first true wireless noise reduction headset on the market, was launched. The headset uses an in-ear design and is equipped with multiple earplugs of different sizes to assist in wearing and bring the effect of physical passive noise shielding. It has a built-in Qualcomm CSR8675 Bluetooth chip to achieve active noise reduction. This headset paves the way for Apple's release of AirPods Pro noise-reducing true wireless headsets in 2019.

Mobile phone brands represented by Apple cancel the 3.5mm audio interface

In October 2017, Apple launched the iPhone7 series of smartphones, canceled the 3.5mm audio headphone jack, and changed the earphones that came with the phone to EarPods with Lightning interface. This product means that the iPhone has gradually moved towards non-porous and wireless. At the same time, follow-up to cancel the 3.5mm audio headphone jack mobile phone brands such as Huawei, Samsung, Xiaomi, Honor, OPPO, vivo, etc.

Mobile phones, audio and new brands have deployed TWS headsets

From 2017 to 2020, the TWS headset market has exploded, and hundreds of brands have joined the TWS headset battle. Among them, mobile phone manufacturers such as Apple, Google, Huawei, Honor, Lenovo, LG, Xiaomi, Meizu, Motorola, Nubia, OPPO, Redmi, Realme, Samsung, Sony, vivo, etc. have successively launched their first true wireless headset products; well-known Audio brands such as Sony, BOSE, Sennheiser, Edifier, JVC, JBL, Jabra, B&O, Astrid, Klipsh, Hivi, etc. have all launched true wireless headset products; at the same time, many new brands such as: Bird, Wanmo, FIIL, ANKER, etc.

2020

Bluetooth Technology Alliance releases Bluetooth 5.2 version

Bluetooth version 5.2 and LE Audio are released. With the rapid growth in sales of TWS headset products, the requirements for Bluetooth pairing between mobile phones and headsets are getting higher and higher. In 2020, the Bluetooth Technology Alliance released the Bluetooth 5.2 version, and at the same time launched a new generation of Bluetooth audio technology standard-LE Audio based on the Bluetooth 5.2 version specification, which brings a more open system, lower power consumption, and more to the TWS headset. High-quality sound effects, and support multiple streams, support broadcast audio and other functions.

The iPhone 12 series is the first to cancel the standard earpieces

In 2020, Apple, Samsung and other leading mobile phone brands have successively cancelled the wired earphone originally gifted with mobile phones. At present, TWS earbuds still need to be paired with mobile phones, computers before they can be used. The cancellation of wired headsets on mobile phones will greatly stimulate consumer demand for TWS headsets.

2021

In the future, TWS headsets will continue to improve sound quality, increase battery life, reduce transmission delay, and develop richer functions. In addition, as an important carrier of voice interaction, TWS headsets have gradually become an important entrance to the Internet

Industry development trend
In September 2016, Apple released the first generation of TWS headset Airpods, which promoted the transformation of the headset industry and opened the era of true wireless headsets. In recent years, as the Bluetooth connection of TWS headsets has been continuously stabilized, low latency issues have been resolved, and active noise reduction and call noise reduction have been promoted successively, the market’s acceptance of TWS headsets has continued to increase, and the industry has entered an explosive growth. stage.

According to the survey and interview data of WI capital and 52 Audio , and combined with the forecast of international research institutions, the global brand TWS headset shipments in 2020 will be about 250 million, and it is estimated that by 2024, the global brand TWS headset shipments will reach 5.51 Billion. From 2020 to 2024, the growth rate of branded TWS headsets will slow down, but the compound annual growth rate will still be as high as 19.8%. In addition, according to data from multi-channel suppliers, the shipment of white-brand earphones in 2020 will be about 350 million, and it is expected to exceed 500 million by 2024.

(1)Android market output & increasing rate

Android market	2016	2017	2018	2019	2020	2021E	2022E	2023E	2024E
Mobile phone output (Billions)	12.6	12.5	11.9	11.8	10.8	11.8	12.3	12.9	13.1
Rate	0	1%	3%	8%	14%	20%	24%	27%	30%
Tws earphone output (billions)	0	0.13	0.36	0.94	1.51	2.36	2.95	3.48	3.93

-This data is from WI CAPITAL, 52Audio and Public data collation

(2)Iphone shipments & increased rate

Apple market	2016	2017	2018	2019	2020	2021E	2022E	2023E	2024E
Mobile phone output (Billions)	2.2	2.2	2.1	1.9	1.8	2	2.1	2.2	2.2
Rate	5%	20%	25%	40%	53%	60%	65%	70%	75%
Tws earphone output (billions)	0.11	0.44	0.53	0.68	0.95	1.2	1.37	1.54	1.58

-This data is from WI CAPITAL, 52Audio and Public data collation

(3)Global tws earbuds market share & increased rate

Unit : Billion set	2016	2017	2018	2019	2020	2021E	2022E	2023E	2024E
Android tws	0	0.13	0.36	0.94	1.51	2.36	2.95	3.48	3.93
Airpods tws	0.11	0.44	0.53	0.76	0.95	1.2	1.37	1.54	1.58
Tws earphone output (billions)	0.11	0.57	0.88	1.7	2.47	3.56	4.32	5.02	5.51

-This data is from WI CAPITAL, 52Audio and Public data collation-This data is from WI CAPITAL, 52Audio and Public data collation

In the next 5 years, with the continuous accumulation and maturity of Bluetooth, sensors, chips and other technologies, as well as the continuous increase in market penetration, the TWS headset industry will continue to develop at a high speed. It is hoped that the world’s annual shipments will exceed 1 billion, second only to smart phones.

Key technology: interpretation of 9 important components

The "2021TWS Headphone Industry White Paper" will give a detailed interpretation of the "9 important components" in TWS headset products. The following brief content is shared for your reference.

1.Bluetooth audio master chip

The TWS headset cancels the traditional headphone cable connection method, connects the headset to the mobile phone and other playback devices through Bluetooth technology, and transmits the audio signal from the terminal to the two headsets at the same time through monitoring, forwarding, and dual-channel connection, forming a stereo system . Therefore, in the TWS headset, the most critical component is the Bluetooth audio main control chip, which is the basis for realizing TWS headset wireless connection, audio processing, headset power management, intelligent interaction and other functions.

2.Power management chip and charging box MCU

The power management chip is installed in the TWS earphone charging box, which mainly plays two roles: one is responsible for charging the battery of charging box , and the other is for charging the earphones. In addition, it is also necessary to be responsible for implementing safety protection to prevent the built-in lithium battery from overcharging, overdischarging, overcurrent, short circuit and other protection functions.

3.Sensor

In order to make the bluetooth earbuds have a better judge and react to the user's intentions during wearing and use, sensors are widely used in TWS headsets. For example, Apple's AirPods Pro and Huawei's FreeBuds Pro have optical sensors, pressure sensors, acceleration sensors, bone conduction and other sensors.

4.Silicon microphone

Silicon microphone is an acoustic sensor that uses MEMS technology to convert acoustic signals into electrical signals. It serves as a sound recognition function in TWS headsets. MEMS (Micro-Electro Mechanical System, Micro-Electro Mechanical System), after miniaturizing the components of the traditional mechanical system, through semiconductor processing technology, fixed on the wafer to make the corresponding components. The silicon microphone is mainly composed of two parts: MEMS sensor and ASIC chip. The sensor converts external signals into electrical signals, and the actuator interacts with the outside world. The signal transmission unit can process the signals and connect with other micro systems.

5.Sound units

These two sounding units can be used independently or in combination. The number of uses will also increase or decrease according to the sound quality requirements of the earphones, such as different solutions such as single-moving coil, single-acting iron, double-acting iron, and coil iron modules. In addition, emerging solutions such as moving porcelain speakers have also appeared on the market.

6.Battery

The battery in the TWS headset exists in two places: one is in the charging box. The battery is mainly responsible for providing backup energy to the headset battery and for the internal circuit of the charging box. It is usually a Polymer Lithium-Ion Battery with a capacity of 300-600mAh.Normally will adpoted only one battery , if want to acheived super long battery life or other speacial function , might be used 2 batteries in the charging cases.The other is in the Left and Right earphone,andboth are require separate battery modules for internal circuits, speakers and other components. Usually button batteries , Soft-pack batteries or pin-type batteries, with a capacity of 30-60mAh, the choice of battery depends mainly on the product's design and cost considerations.

7.Antenna

The antenna is one of the important functional parts of the TWS headset to achieve wireless connection. The function of the antenna is to convert the high-frequency current energy output by the transmitter into electromagnetic wave radiation, or to convert the space electromagnetic wave signal into high-frequency current energy and send it to the receiver. The antenna determines the communication indicators such as communication quality, signal power, signal bandwidth, connection speed, etc., and is an important front-end device of the communication system.

8.Connector: charging port, BTB connector, metal shrapnel, metal Pin

Connectors are widely used in many consumer electronic products. At present, the connector products in TWS headsets mainly include: charging interface, BTB connector, metal shrapnel, metal pin, and cable. Through these connectors, the TWS earphone can realize the connection operation between the various components

9.Test equipment

The product testing plays a key role in the process of TWS earphones from design, processing with incoming materials, and then to the assembly and sale of finished products. The test of TWS earphones mainly includes two parts: laboratory test and production line test. The former is mainly used for quality testing in the R&D phase, as well as various certifications such as radio frequency, acoustics, and safety; the latter is mainly used for quality control in the production phase. Control and test in advance at all stages to reduce the unqualified rate of finished products.

Summary of report content

TWS headset market: According to the survey and interview data of wi Capital and 52 Audio , combined with the forecast of authoritative research institutions, the global brand TWS headset shipments in 2020 will be about 250 million. It is estimated that by 2024, the global brand TWS headset Shipments reached 550 million units. From 2020 to 2024, the growth rate of the TWS headset brand will slow down, but the compound annual growth rate of market shipments will still be as high as 19.8%. In addition, according to data from multi-channel suppliers, the shipment of white-brand headsets in 2020 will be about 350 million, and it is expected to exceed 500 million by 2024. In a words, the TWS headset market will grow from a total annual shipment of 600 million units in 2020 to 1.05 billion units in 2024, with a compound annual growth rate of 15.04%.

Industry development cycle: The TWS headset era was opened by Apple at the end of 2016. A large number of brands have entered in 2018. It is not until 2019 that mobile phone brand manufacturers in the Android camp solve the problem of headset connection. TWS headsets only go half of journey in the innovation cycle of terminal devices. For at least the next 2-3 years, TWS headsets will continue to innovate in the hardware, providing users with better sound quality, faster connections, longer battery life and lower latency.

Brand TWS headset shipment : According to research, downstream mobile phone manufacturers, traditional audio manufacturers, and e-commerce share the TWS headset market. In 2020, global brand TWS headsets will ship 250 million pairs, of which Apple’s shipments account for 38% . The remaining market share is occupied by other mobile phone manufacturers such as Xiaomi, Samsung, and Huawei, which is about 31%. In addition, e-commerce brands such as QCY, ANKER, AUKEY, etc. also occupy a larger share, which is comparable to the shipments of traditional audio manufacturers.

TWS headset market trends:

(1) The TWS headset market will continue to maintain rapid growth in the next five years;

(2) The market structure will change from white-label and high imitation-based to brand-based;

(3) Mobile phone manufacturers are on the throne, followed by e-commerce brands;

(4) The market will be reshuffled in the next 2-3 years, which will bring about changes in the competitive landscape of the supply chain.

TWS headset technology trends:

(1) Active noise reduction and call noise reduction will become main trends,

(2) The importance of sound quality has increased significantly;

(3) Human-computer interaction solutions will continue to innovate.

TWS headset industry chain trends:

(1) The entry of traditional mobile phone foundries has brought industry productivity improvements;

(2) The level of automation in the manufacturing process will be improved.

Analysis of TWS earphone components:

The TWS headset is mainly composed of a charging box and earphones. The charging box contains lithium batteries, power management chips, wireless charging coils and chips, MCUs, LED charging indicator modules and other components; the left and right headset units include Bluetooth master chips, lithium Electronic devices such as battery protection chips, sensors, batteries, microphones, horns, antennas, and connectors.