The wireless earbuds market is entering a slower growth phase as first-time demand weakens and replacement purchases begin to dominate, altering the basis of competition.
Shipments grew just 1% in 2025, according to Counterpoint Research, marking a sharp moderation after several years of rapid expansion driven by sub- Rs 1,000 devices. Industry executives and analysts said the pool of first-time buyers has largely been exhausted, with incremental demand now coming from existing users upgrading their devices.
“We are seeing a transition,” said Anshika Jain, principal analyst at Counterpoint. “First-time users have declined. The demand now is from replacement users, and they want sound optimisation, active noise cancellation (ANC), comfort and fit.”
Beyond the Rs 1,000 Barrier
The shift is visible in feature adoption. Devices with active noise cancellation grew 24% in 2025, while spatial audio shipments rose 67%. Open-wear stereo products, which rest on the ear rather than inside it, expanded sharply from a low base. The premium segment, defined as devices priced above Rs 5,000, increased its share of total shipments from 3.4% to 5.4%.
The changing demand mix is benefiting brands positioned in the mid-to-premium segment. OnePlus and realme recorded their highest annual shipments, growing 21% and 22%, respectively. In the premium segment, Chinese brands expanded 45%. OnePlus alone accounted for 31% of shipments in the above- Rs 5,000 category, ahead of Apple at 19% and Samsung at 14%, supported by feature-rich offerings, including active noise cancellation, spatial audio and advanced codecs.
Domestic Pivot
The transition is more challenging for domestic brands that built scale in the entry-level segment. BoAt retained market leadership with a 30.8% share but saw shipments decline 6%. Its portfolio remains concentrated below Rs 5,000, with a limited presence in the Rs 5,000–10,000 segment, which is currently the fastest-growing.
The company has begun expanding overseas, entering Malaysia in partnership with Opptra, a venture backed by Flipkart co-founder Binny Bansal, with a focus on its higher-end Nirvana range.
Other domestic players are attempting to build premium positioning through partnerships and product upgrades. Noise reported a 5% decline in overall shipments but gained share in the premium segment. The company has received $30 million in investment from Bose across two rounds since December 2023. Its Master Buds series, launched with Bose-tuned audio and high levels of noise cancellation, has seen a positive response, Jain said.
GOBOULT was the only top-five Indian brand to register overall growth, with its share inching up to 12.9%. The company recently rebranded from Boult as part of what co-founder Varun Gupta described as a complete DNA shift towards premiumisation.
New entrants are also shaping the segment. Nothing, founded by Carl Pei, has expanded into the premium top 10 earbuds brands in India within a year, supported by design-led products and early integration of artificial intelligence features. “Nothing has come very close to Noise in the premium Rs 5,000–10,000 segment,” Jain said.
Counterpoint expects overall market growth of 1–5% in 2026, indicating that volumes are likely to remain constrained. The next phase of expansion will depend on brands’ ability to move up the value chain and capture higher spending from replacement buyers. While product features can be upgraded quickly, analysts said, repositioning brand perception in the premium segment will take longer.