Gaming Headset Market

Market Overview

The global gaming headset market was valued at USD 2,360.48 million in 2023. It is expected to reach USD 4,459.73 million in 2032, growing at a CAGR of 7.3% over the forecast period (2024-2032). The rapid growth of eSports and competitive gaming tournaments has significantly increased the demand for high-quality gaming headsets. Professional gamers and enthusiasts alike require headsets that offer superior audio quality, comfort, and communication capabilities.

Moreover, the popularity of PC gaming, as well as gaming consoles like PlayStation, Xbox, and Nintendo Switch, drives the demand for gaming headsets tailored to each platform's requirements and connectivity options.

Gaming headset consists of headphones and microphones and is used by enthusiasts while playing video games. These headsets are typically made to completely immerse a player in the gaming world, block out external noises, increase player comfort, and enable in-game communication. Gaming headsets offer a convenient way to play games in-depth and communicate with teammates and friends. They are over-ear headphones with a crystal-clear microphone.

Gaming headsets are distinguished from their music counterpart in terms of the audio quality, audio effects, and noise cancelation feature. These headsets can be distinguished from regular headsets as they have a bulky build and come with RGB lighting. One of the most vital features of gaming headsets is that they provide true surround sound, allowing players to pinpoint the source of incoming sounds. Many gaming headsets have buttons and scrolls for controlling volume, bass, and noise cancellation feature and are used with all gaming consoles and computers.

Highlights

• PC/Mac gaming headset dominates the platform segment
• Wired gaming headset dominates the technology segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Gaming Headset Market Drivers

Flourishing Video Game Industry

The video game industry is amongst the fastest growing in the world. According to a 2019 United Nations Environment Program (UNEP) report, playing for the Planet, more than 2.3 billion people play video games, spending about USD 140 billion on games annually. The rising prevalence of smartphones and the internet is the prominent driving factor for the growth of the gaming industry. In addition, the spread of the COVID-19 pandemic boosted the growth of the gaming industry.

Additionally, the growth of the gaming industry supports the sale of gaming accessories, including gaming controllers, joysticks, and headsets. Gaming headsets provide better features than ordinary headphones, such as clearer sounds, real-life 3D sound quality, and noise-canceling for comfortable communication. Moreover, gaming headsets also consist of a mic on that pair for communication. Gaming headsets ensure that no outside sounds can reach the players, so there is no chance of them picking up vital information from the casters or the audience and ensuring a relatively distraction-free playing environment. Such factors boost the market.

Growing Popularity of E-Sports Among the Consumers 

Electronic Sports, also known as e-sports, include professional competitive gaming tournaments. The growing interest in e-sports among the audience and increasing viewership of e-sports tournaments are driving the growth of the e-sports industry. According to the Global, Esports Federation estimates, there were about 272 million occasional viewers and 223 million enthusiasts watching e-sports in 2020, making the total audience size 496 million.

Furthermore, several tournaments offer heavy prizes for the winners, attracting more competition participants. A sizable audience spent more time in 2020 watching live e-sports contests on streaming services as a result of the COVID-19 pandemic outbreak. For instance, YouTube Gaming witnessed exceptional growth in hours watched, increasing 156 million hours from Q2 to Q3. Such growth in the e-sports market augmented the demand for gaming headsets from players and viewers, supporting the sale of gaming headsets.

Global Gaming Headset Market Restraint

Easy Availability of Counterfeit Products

Counterfeiting affects the gaming peripherals market in a big way. A grey secondary market exists for gaming headsets and other gaming hardware worldwide. A drastic increase in fakes has recently been observed due to the growth of online channels. Decreased performance, inferior construction and materials, and a very short lifespan of counterfeit headsets affect the brand value of the manufacturers.

Fake websites similar to the branded ones draw unsuspecting consumers who look to buy branded headsets online at discounted prices. The availability of counterfeit can also hurt product innovations. In addition, gaming headsets are expensive; counterfeit products make them affordable for those who cannot afford the brands otherwise. Those who willingly buy counterfeit consumer goods do not bother about the legal repercussions. Hence, it is important restraint for the growth of the market.

Global Gaming Headset Market Opportunities

Rapid Advancements

Gaming has developed into an independent industry. As a result, the demand for gaming accessories such as headgear is increasing at an unprecedented rate. The headphones include microphones with controls and scroll wheels for adjusting the volume, noise cancellation, bass, audio effects, etc. Moreover, virtual reality-based headsets enable users to immerse themselves in a simulated environment that makes them feel like they are walking in a gaming environment. In addition, the person becomes absorbed in the game as the line between virtual and fact becomes increasingly blurry. The participants of a hyperreality game can experience and touch real-world objects. The increasing prominence of squad games such as PUBG, Fortnite, and Overwatch has also contributed to the expansion of the headset industry. These gradual changes will offer lucrative opportunities to expand the market over the next few years.

Regional Analysis

The global market is bifurcated based on region into North America, Europe, Asia-Pacific, and RoW.

North America Dominates the Global Market

North America is the most significant global market shareholder and is anticipated to exhibit a CAGR of 7.50% during the forecast period. North America region is the most prominent market in the global market as the US and Canada are among the largest gaming industries in the world. As 76% of Americans have internet access, the U.S. enthusiasm for gaming is set to rise rapidly. In the United States, the video game revenue, including hardware, software, peripherals, and subscriptions, amounted to USD 43.4 billion in 2018, up from USD 36.9 billion a year earlier. Besides, the rising younger population, higher disposable incomes, and the introduction of new gaming genres have accelerated the growth of gamers, thereby driving growth in the gaming headsets market in the U.S. The popularity of esports' among younger Americans is continuously growing.

Furthermore, the U.S. has the highest number of professional gamers globally, with around 8000 professional players. Esports enthusiasts are big spenders and heavy users of digital gaming products. American sports clubs, owners, and celebrities particularly embrace the growing esports trend. Therefore, the number of hardcore gamers is expected to rise over the upcoming years, positively influencing the consumption of competent accessories such as gaming headsets over the forecast years.

Europe is estimated to exhibit a CAGR of 7.22% over the forecast period. Europe has been one of the essential regions in developing gaming headsets due to the prominent esports industry. Europe is home to some of the earliest companies that popularized esports, particularly in the West. The involvement of sports clubs and personalities, leagues, and agencies will significantly accelerate the development of the global esports industry and help local esports scenes grow, which will also contribute to the growth of the gaming headset market in the region. In addition, the growing audience and accompanying commercialization potential mean esports is attracting more companies willing to engage as sponsors or partners of events, leagues, and teams that will bring fruitful opportunities for the gaming headset market players in European countries.

Germany is the largest European market and one of the most important markets worldwide. German gaming hardware companies are highly specialized in several fields. There are various companies involved in high-quality audio and speaker technology, like Teufel or Nubert, which further aids the growth of the market.

Asia-Pacific has the fastest-growing gaming community globally, with China, Japan, and South Korea leading. In China, 64 percent of the population identifies as a gamer. More people can afford games and gaming equipment because of its massive population and a general increase in prosperity. Asian gamers spend USD 12bn yearly on mobile games, and Japan and South Korea top the global list of average game spend per user. Over 50% of esports' biggest fans are in Asia-Pacific, greatly boosting the gaming headset market. The Asia-Pacific region is home to the world's largest and most lucrative audience, making it an ideal place for the gaming and esports business to thrive. With such a responsive group, endemic and non-endemic gaming products will gain pronounced sales, particularly gaming headsets, an important peripheral used in gaming, thereby driving the market growth.

The RoW comprises South America and the Middle East and Africa. South America is one of the emerging gaming markets in the world. Governments in the region have recognized the industry, and it is identified as a crucial part of the industry promotion agencies and their business events. The MICSUR, or Southern Cultural Industries Market, includes six industries, including video games.

The Middle East and Africa's gaming industry is rapidly growing and has expanded beyond casual play to include virtual reality games and competitive sports. The area's gaming and gaming headset market is anticipated to develop in the next years due to the region's expanding community of avid gamers and high internet penetration. Regarding players' awareness of and involvement with the platform, the UAE and KSA are among the top 10 worldwide gaming markets. The region's highly engaged gaming audience presents a huge opportunity for gaming headset manufacturers.

Segmental Analysis

The global market is segmented by platform and technology.

Based on the platform, the global market is segmented into multi-platform gaming headsets, PC/Mac gaming headsets, and console gaming headsets. 

The PC/Mac gaming headsets segment owns the highest market share and is estimated to exhibit a CAGR of 7.21% during the forecast period. Competitive games such as Overwatch, Fortnite, Grand Theft Auto, and others have overtaken the PC gaming division, so PC gaming headsets are in great demand. As a result, it is now more important than ever for users to upgrade their sound system. In 2020, numerous PC games have also been launched, such as Cyberpunk 2077, Resident Evil 3, Doom Eternal, Half-Life: Alyx, and Doom Eternal. For instance, has launched in March 2020. Moreover, rising live streamers and gaming influencers drive the PC/Mac market. Furthermore, the coronavirus pandemic has created a big spike in sales for PC gaming headsets in the near term, which drives the demand for the PC/Mac gaming headsets segment.

The multi-platform mobile game engines allow users to run a developed game on various platforms without any porting process. In the PC games industry, companies are launching multi-platform publishing and play games to make gaming additional flexibility for users. Multi-platform gaming is gaining popularity for major development companies and developers with relatively low budgets. In addition, the demand for multi-platform gaming headsets is growing with the increasing demand for bringing games to multiple platforms Cross-platform development tools (CPTs) become the more popular choice for developers. As a result, multi-platform gaming headsets are also gaining significant demand.

Based on technology, the global market is divided into wired gaming headsets and wireless gaming headsets. 

The wired gaming headsets segment is responsible for the largest market share and is anticipated to exhibit a CAGR of 5.99% over the forecast period. Wired gaming headsets are usually less expensive than wireless gaming headsets and have none of the downsides of relying on a wireless signal. It generally offers better quality at lower prices. Likewise, wired gaming headphones minimize the risk of interference that could otherwise affect sound quality, which is most important while playing the game. The major factor contributing to its high adoption is its affordability, as wired headsets generally offer better quality at lower prices. Also, it does not need regular recharging of the batteries.

In addition, wired gaming headphones that offer high-definition audio quality ensure great sound is easily available. These gaming headphones have specially designed driver enclosures for accurate hearing, an ultra-durable building, and a lightweight structure. Further, with the growing usage of smartphones and consoles, the wired market will show high growth in the future.

Wireless gaming headsets are a recent development in the world of electronic devices and are also the fastest-growing segment of wired gaming headsets in the global market. Wireless gaming headsets are widely adopted by users owing to their advantages, such as mobility and easy installation. Wireless gaming headsets can be connected to electronic devices using Wi-Fi or Bluetooth. Moreover, wireless gaming headsets enable users to move freely as they do not have cables, so they are preferred over wired gaming headsets. The increasing consumer inclination towards stylish and attractive designs is expected to boost the sales of the wireless gaming headset segment. The styling and portability of these products have made them popular among young gamers, which is expected to drive the market.

Recent Developments

• May 2024 - The best-selling Stealth 600 Multiplatform Gaming Headset from Turtle Beach (NASDAQ: HEAR) was redesigned to include wireless and Bluetooth, powerful 50mm nanoclear drivers, a class-leading 80-hour battery life, and much more for the same stylish price, i.e., MSRP of USD 99.99. With an affordable USD79.99 MSRP, the New Stealth 500 joins Turtle Beach's renowned gaming headset family and offers the brand's signature wireless gaming audio and Bluetooth.
• May 2024 - Fractal Design continued to develop in computer cases and revealed a new line of items that marked a move into gaming headsets and seats. The Scape gaming headset, the Era 2 and Mood computer case models, and the Refine gaming chair are among the products being introduced.