The Indian audio device market is expanding due to a need for immersive sound technologies and high-quality audio products for both home and personal use
The earphones and headphones market in India is projected to grow at a CAGR of 18.5% from 2023 to 2030, according to Grand View Research. In the period from July 2023 to June 2024, the overall audio devices market in offline retail reached Rs 5,000 crore, driven by strong growth in the personal audio segment, as reported by GfK. During this time, the personal audio market in India, valued at Rs 3,400 crore, saw a 32% year-on-year increase in value and a 61% rise in volume. With local vendors drawing interest from both customers and competitors the industry is growing into an important area for new audio technology. With the growing popularity of wireless technologies like wi-fi and bluetooth and their application in creative audio solutions to satisfy a variety of purposes, the market share for headphones and earphones is anticipated to increase even further.
What’s driving this growth?
The Indian audio device market is expanding due to a need for immersive sound technologies and high-quality audio products for both home and personal use. This expansion is aided by the transition to premium audio experiences, which is being driven by emergent content formats such as podcasts. More people need wireless and wired headsets, along with software for industries like IT, BPO, gaming, and aviation. As IT and BPO grow, the need for good-quality audio devices also goes up.
Moreover, in today’s fast-paced retail environment, effective communication with customers is crucial. India’s retail sector is the fourth largest in the world and makes up over 10% of the country’s GDP. By 2032, it is expected to be worth $2 trillion, according to Boston Consulting Group (BCG). Retail growth is happening quickly in both big cities and small towns, with consumers using both online and offline channels equally. Retailers are experimenting with integrated, seamless experiences across all platforms, using both e-commerce and traditional methods to improve customer value.
As digital technologies evolve, innovative audio solutions are being adopted by retailers to communicate more quickly, effectively, and efficiently with customers. These innovations are enhancing consumer experiences and opening new opportunities for customer engagement.
Difficulties experienced by retail environments lacking audio solutions
- Customers may have trouble hearing staff or understanding announcements due to background noise, causing frustration and confusion.
- A noisy environment can distract customers from products and promotions, affecting their purchasing decisions.
- Staff may find it hard to communicate with each other and customers, resulting in errors, delays, and reduced efficiency.
Innovations in audio solutions for retail
Retailers are using audio technology to make shopping better. It helps with both online and in-store shopping, as well as communication inside the business, making everything run more smoothly. These include :
- Noise cancellation technology
Noise cancellation has become a pivotal feature in modern audio devices, significantly improving user experience in various environments. Active Noise Cancellation (ANC) technology, which reduces unwanted ambient sounds, has seen substantial improvements. For instance, LIVEY has developed some of the best noise-canceling algorithms on the market, enhancing the performance of their wireless earbuds and Bluetooth speakers
Moreover, the integration of artificial intelligence (AI) into noise cancellation systems has led to the development of devices capable of creating customizable auditory zones, or “sound bubbles.” These intelligent headsets allow users to focus on specific sounds within a designated area while suppressing external noise, offering a more personalized listening experience. This can improve internal communication among staff in offline retail stores, as well as facilitate better communication in online retail settings, such as e-commerce, with vendors or customers for an enhanced experience.
- Smart voice Technology
More voice-activated devices are being used, giving retailers new ways to reach customers. Voice commerce is revolutionizing how consumers shop and engage with brands, bringing a new level of convenience, accessibility, and personalized shopping experiences.
Companies like SoundHound AI are at the forefront of this transformation, developing voice AI technologies that can be integrated across various devices and services. These advancements enable more natural and efficient customer interactions, enhancing the overall shopping experience.
- Network Audio
Network audio (audio-over-IP or AoIP) helps in-store retail marketing by using a standard Ethernet network. It lowers costs, is flexible, easy to manage, and can grow with the store’s needs. AoIP works well with other systems like CCTV and telephony. Smart zoning lets stores play different music or make announcements in specific areas. Smart zoning is simple to adjust, requiring no new cabling or devices.
- Directional Speakers
Directional speakers improve the shopping experience by focusing sound in a straight beam, similar to a laser or flashlight. This directs audio to certain customers and reduces distractions for others nearby. The technology allows for unique store designs, drawing attention to areas with tailored audio, without disturbing others. It helps customers focus, which may increase the chance of a purchase. Location-specific information or customized audio can also be triggered by actions, such as picking up an item.
AI in wireless audio devices is expected to bring new features like personalized music, better noise cancellation, and improved energy use. Wearable audio devices will change how people use audio by offering fitness tracking, health monitoring, and easy networking. The future of retail audio systems will rely on better noise reduction and smart voice technology. These improvements will enhance customer experiences, make operations easier, and help retailers stay competitive.
