Overview of the Development of China's Electroacoustic Industry

1) China's electroacoustic industry has achieved rapid development: Since the 1980s, the industry has maintained a rapid development trend and has independently developed and gradually mastered multiple production technologies from electroacoustic components to terminal electroacoustic products, forming a relatively complete electroacoustic industry system and related industry chain. Since the 21st century, China's electroacoustic industry has gradually shifted from a one-sided pursuit of large-scale OEM manufacturers to a quality and efficiency oriented ODM manufacturer. Domestic electroacoustic enterprises have increased research and development investment in the development and application of electroacoustic components, acoustic signal processing, embedded software and hardware development systems, product testing, and other aspects, forming strong technical strength. Leading domestic electroacoustic product manufacturers are gradually breaking through the competition in the low-end electroacoustic component market, Moving towards the mid to high end electroacoustic market. In recent years, with the continuous development of digital products such as smartphones, tablets, laptops, portable media players, and virtual reality devices worldwide and the large-scale international transfer of the electroacoustic industry, micro electroacoustic devices and consumer electroacoustic products representing the high-end level of the electroacoustic industry have rapidly developed in China.
2) The manufacturing industry of OEM/ODM electroacoustic complete sets in China has significant advantages: in addition to upstream components, OEM/ODM complete sets are the most valuable link in the TWS headphone industry chain, with a cost proportion of up to 40%. The noise reduction, sound quality, and intelligence of TWS earphones have led to an increase in functional complexity, placing higher demands on the precision manufacturing capabilities of OEM/ODM enterprises. Benefiting from the comparative advantage of global division of labor and the attractiveness of China's vast consumer market, Chinese consumer electronics enterprises have been continuously improving their competitiveness while undertaking international industry and technology transfer for many years. They have gradually mastered the main production technologies involved in the manufacturing process of TWS earphones, including a large number of precision assembly processes and testing processes. They have basically kept pace with international leading enterprises in terms of product quality, technical level, and production capacity, We have formed a relatively complete advantage in upstream and downstream supporting resources in the industry, which has promoted the development of electroacoustic components and complete machine manufacturing industries in China.
3) China's electroacoustic industry has a high degree of marketization and overall fierce competition: China is the largest producer and consumer market of headphones, and has formed a complete industrial chain of electroacoustic products, including headphones. The downstream of the electroacoustic industry covers industries ranging from high-precision and cutting-edge military industry to household automobiles, household appliances, mobile phones, and computers. Electroacoustic devices cover almost every aspect of human life and are widely used in military, cultural, and entertainment industries. Television, communication equipment, game consoles, home theaters, and children's toys are all inseparable from electroacoustic components and products. After years of rapid development, the marketization level of China's electroacoustic industry is very high, and the vast majority of electroacoustic enterprises have already participated in international competition. At present, China's electroacoustic enterprises are mainly concentrated in Guangdong, Shandong, and the Jiangsu and Zhejiang regions, forming a relatively sufficient market competition pattern.
(4) Global headphone terminal market analysis: The global headphone market has seen a rapid increase in shipment volume and rapid expansion of industry scale. The global headphone sales scale increased from $22.9 billion in 2018 to $35.1 billion in 2019. It is expected that the sales revenue in 2020 will reach 44.6 billion US dollars, an increase of 27.07% compared to 2019, and the growth rate of sales scale is relatively fast.
(5) Analysis of China's earphone market: As the world's leading producer of earphones, driven by strong global demand for electroacoustic products, the shipment volume of smart earphones has maintained stable growth, increasing from 36.11 million units in 2018 to 96.1 million units in 2020, with a compound annual growth rate of 63.1%. With the improvement of research and development design, process manufacturing, and service capabilities of Chinese enterprises, the international market gradually recognizes the ODM/OEM capabilities of China's earphone products, and domestic ODM/OEM earphone manufacturers are rapidly rising