Project 3 - Consumer Electronics
Product: Headphone
Task 1
The global earphones and headphones market size was valued at USD 25.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 20.3% from 2020 to 2027. Rising consumer preference for enhanced audio experience, growing music industry, coupled with mobile technology and internet penetration, are some of the primary factors driving the market.
Technological advancements such as the emergence of notch-less smartphones are anticipated to fuel the growth of wireless earphones over the forecast period. Additionally, rising consumer inclination towards stylish and attractive designs is expected to boost the sales of earphones and headphones over the forecast period.
Introduction of true wireless earbuds has brought about a paradigm shift in the way people listen to their music. These earbuds provide a user with a tangle free experience while listening to music as there is no wire connecting the left and right earpieces. The earbuds are compact and can be carried around in a charging case, making them extremely portable. The styling and portability of these products have made them popular among the young crowd, athletes, and fitness enthusiasts, which is expected to drive the market.
Technology developments are primarily driven by surging consumer demand for style and high-fidelity. Introduction of advanced features like active noise cancellation (ANC) and near field communication (NFC) is expected to offer a user with enhanced listening experience and fluidity in connectivity with their music devices. For instance, presence of active noise cancellation (ANC) technology in earphones and headphones eliminates the background noise, thus improving sound quality. Near field communication (NFC) establishes the connection between the wireless headphones and music device by just tapping them to each other. Such advanced features are anticipated to fuel the market growth.
Usage of earphones and headphones for fitness activities under various environmental conditions, like rain and dust, has propelled the manufacturers to add durability to their products. Several companies have manufactured their products with a certain (ingress protection) IPX rating, which is a safety rating to offer protection against dust and water. For example, IPX1 rated device is resistant to water droplets and can be dripped with water for 10 minutes. The level of protection ranges from the number 0 to 9 and increases with the highest level being IPX9, which offers protection against the spray of water from a high-pressure nozzle. Similarly, in the case of dust, the rating ranges from IP0X to IP6X, with IP6X being the highest. In some cases, the product may be resistant against both dust and water. For instance, products with an IP57 rating are dust tight and water resistant to high pressure sprays. Presence of such useful features and some significant development in product technology is expected to keep the product in demand over the forecast period.
Product Insights
In terms of revenue, earphones dominated the market with a share of 53.0% in 2019. This is attributed to the comfort in hearing music, low cost, and compact size. The lightweight design and portability of earphones make them a preferred choice for fitness and sports enthusiasts. Additionally, earphones provide good passive isolation from external sound, which translates into an immersive music listening experience for the user and is expected to drive the segment.
The bulky size and cost have reduced the popularity of the on-ear and over-ear headphones in recent years. However, technological advancements in these headphones with features, like active noise cancellation (ANC) and rich bass signature, make them a preferred choice among the audiophile community. The large-sized ear cups allow the manufacturers to equip the headphones with dynamic and electrostatic sound drivers, resulting in enhanced and clear sound quality. Companies like Bose Corporation, Sony Corporation, Sennheiser GmbH & Co. KG, and Skullcandy.com are engaged in improving the design and styling of their headphones by offering foldable headphones, leather ear cup cushions, and better build quality, which is expected to keep the headphones trending among the users.
Price Insights
In terms of revenue, the 50 to 100 USD segment dominated the market with a share of 39.2% in 2019. This is attributed to the technological developments in this segment, which are primarily driven by growing consumer demand for style and high fidelity. Additionally, short product replacement cycle results in positive impact on the earphone and headphone adoption. Rising demand for enhanced sound quality experience, coupled with economic volatility associated with these devices, is driving the adoption of 50 to 100 USD earphones and headphones.
The less than 50 USD segment is anticipated to witness significant growth in terms of volume over the forecast period on account of rising adoption, particularly in the emerging economies, including India, China, Brazil, and the Middle East. Wide availability of these products under this price category on e-commerce websites and retail outlets is likely to boost the segment sales. Additionally, presence of multiple players in the low range category is expected to drive the segment. Premium brands like Skullcandy.com, Xiaomi, Koninklijke Philips N.V., Sony Corporation, and JBL are some of the players offering their products in the low to mid-range price segment.
Technology Insights
In terms of revenue, the wireless segment dominated the market with a share of 76.2% in 2019. This is attributed to the introduction of true wireless earbuds and technological advancements in Bluetooth connectivity of wireless devices. Wireless earbuds were first introduced by a company named Bragi, based in Munich, Germany. Meanwhile, the launch of AirPods from Apple, Inc. in 2016, shifted the momentum entirely from wired products to wireless products. Besides, local players like boAt, Zebronics India Pvt. Ltd., Xiaomi, Boult Audio, GoNoise, and Portronics, and MiVi are engaged in offering wireless earphones at lower prices, which is further expected to drive the segment.
Furthermore, introduction of smart features like voice assistance, gesture recognition, fitness tracking, and wearing detection for play and pause of music is expected to increase the adoption of wireless earphones and headphones. Nowadays, wireless earphones and headphones are also equipped with better Bluetooth technology to facilitate better connectivity at long distances and enhanced battery life for long hours of listening. Such advanced features and continuous innovations are anticipated to drive the market for wireless products. However, wired products are expected to maintain their market share in future owing to the low price, zero latency, and better audio quality offered by these devices.
Application Insights
In terms of revenue, the music and entertainment segment dominated the market with a share of 41.6% in 2019. This is attributed to the rising adoption of earphones and headphones for casual music listening, usage by audiophiles, and listening and creating sound effects in the music and entertainment industry. The virtual reality application segment is expected to witness significant growth over the forecast period owing to the growing adoption of earphones and headphones across the education, construction, business, and armed forces sectors primarily for training purposes. For example, in armed forces, the headphones are generally used along with simulators to provide realistic sound experience during training. The fitness segment is expected to witness high adoption of wireless earphones, with the inclusion of fitness trackers and heart rate monitoring in the earphones. The fitness trackers allow the athletes and individuals to monitor and plan their daily workout regime, diet, calories burnt, and distance covered. The heart rate monitoring technology measures the heart rate through the ears and transmits the beats per minute (BPM) data to the smartphone application, which can be used to plan the workout. Brands like Bose Corporation, Jabra, Sony Corporation, and Samsung Electronics Co., Ltd. have introduced fitness tracking and heart rate monitoring.
Regional Insights
In terms of revenue, Asia Pacific dominated the market with a share of 29.7% in 2019. This is attributed to high penetration of smartphones and rising disposable income in the region. Furthermore, various key business players are investing significantly in China owing to the emergence of low-cost technology and availability of cheap labor in the region. However, increasing availability of counterfeit products designed and manufactured, especially in India, has enabled various key players to establish their manufacturing facilities in the region, thereby resulting in market growth. North America held the second largest market share in 2019, followed by Europe. This is attributed to the already established market, coupled with high technology penetration in these regions. Companies in this region are focused on investing in R&D and continuous innovation in product development. Furthermore, presence of major industry players in the region, such as Apple Inc., Bose Corporation, GN Store Nord A/S, Harman International Industries, Incorporated, and Sennheiser GmbH & Co., KG, is expected to drive the market across North America and Europe.
Key Companies
The market is highly fragmented and is characterized by high competition with the presence of major global players. These companies particularly focus on enhancing the product quality by adopting advanced and innovative techniques to enhance their market presence and expand their geographical reach. For instance, in September 2018, Skullcandy, Inc. announced the launch of a new wireless headphone known as Riff Wireless. Riff Wireless headphone is lightweight, includes a bendable band, and is equipped with Bluetooth and Rapid Charge technology.
Similarly, various key players are increasingly focusing on enhancing their network and customer base in order to cope with the growing competition from new vendors. For instance, in September 2018, Beats by Dre announced its merchandising and marketing partnership with the National Basketball Association (NBA). Through this partnership, Beats by Dre aims to be the official and the only wireless speaker, headphone, and audio partner for NBA. Some of the prominent players in the earphones and headphones market are:
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Apple Inc.
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Bose Corporation
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Harman International Industries, Incorporated
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Sony Corporation
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Sennheiser Electronics GmbH & Co. KG
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GN Store Nord A/S
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Skullcandy.com
After discussing with the customer ,it was clear that they were looking for a wireless headphone with a stand.
We need to know the features what the customer is looking for to continue with the design.
Below-listed are the requirements gathered from the customer by our technical sales team.
- They are looking for a simple and compact design.
- Need sliding mechanism for expanding the headphone.
- Stand should have magnetic charger.
- stand needs to have a good aesthetic look.
- The locking mechanism for the housings of components should be simple and strong.
- The PCB image and dimension will be provided.
- The housing should withstand the heat produced by PCB.
- Headphone should have aux jack and charging port(to connect with the stand).
- Customer is looking for 3d printing all parts of headphone.
Once we get all these requirements the design team will be able to decide the timeline of this product development.Usually this phase takes one to two hours depending on the complexity of the design.
Future Roadmap
The roadmap is attached below.
Companies like BoAt wants to ensure that customers stick with the brand and do not move away to its competitor. boAt says 20 percent of its sales comes from wired headphones while the remaining comes from wireless and true wireless segments. With the TWS segment catching up in a big way, the company sees an opportunity to become a leading player in that space as well. One of the ways that boAt can become a leader in the true wireless earbuds market is relying on Qualcomm's newest chipsets. These chipsets are designed to bring noise cancellation to wireless earbuds. The consumers are already aware of this new chipset and want them in new products. boAt will definitely launch new audio products with the aforementioned Qualcomm chipsets. The goal remains as simple as adapting to consumer demands and offering better products than their rivals. True wireless (TWS) earbuds are not even 5 percent of the market and has huge room to play. TWS is an early mover game right now and will become mainstream in two years.
Technology is the biggest enabler in the world that we live in right now.It has become clear that technology can make lifestyle better for a lot of us. When it comes to audio, boAt Lifestyle wants to be at the forefront of that change. While the Covid-19 outbreak has been a big disruption, the company sees it as a minor roadblock. It wants to come out of this situation stronger and more focused towards boAt head community. Only time will tell what it comes next but it is definitely inspiring to see a young tech company try to change the narrative in the industry.
- FDM 3d printing
- SLA 3d printing
- SLS 3d printing
- silicon molding
- Injection molding using 3d printed molds.
For this phase our technical team took about 1 hour to shortlist these.Usually this phase takes 30mins to 8 hours depending on the complexity of the product.
- 3d printing:as we are not looking for mass manufacturing this is a good option as it is feasible and can manufacture rapid prototype.
- Silicon molding: Mold making cost is more and the lead time is higher.
- Injection molding using 3d printed molds: this product is not feasible if we are manufacturing only a single peace.
Our team had done the feasibility study on this ,and we concluded that by SLA additive method we could process very detailed product as this product is complex.We cannot continue with other 3d printing methods as they won't be able to produce a complex product like this.
For this phase team took only 1 hour to come with this conclusion.
Work Breakdown Structure
Earphones and headphones provide personal listening from audio sources, and many use the same basic principles of those used by loudspeakers, but just being much smaller in size. The technology used for earphones and headphones has obviously been developed so that they provide the optimum performance for their particular circumstances, and in this way the way in which the technology is implemented is slightly different to other transducers. Whilst some earphones and headphones are low cost, others can be very expensive, providing exceedingly high levels of performance. Understanding how headphones and earphones work, gives real insight into knowing which types are best for different applications and why they have certain advantages or limitations.
Although most of the earphones and headphones used today use a particular technology based on magnetism, over the years other technologies such as the piezo electric effect. Even within those earphones using magnetic effects, there have been a number of ways of implementing the technology, although, today, most using a moving coil approach. In view of this, it is worth looking at how the different headphone technologies work to see and understand their advantages and disadvantages.
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Moving coil / dynamic: The basics of this type of earphone technology are the same as those used for moving coil loudspeakers. A static magnetic field is created by a permanent magnet, and then a current is passed though a coil held within the field. The field resulting from the current in the coil interacts with that of the magnet setting up forces which cause the coil to move. The coil vibrations are linked to a diaphragm enabling the vibrations to move more air, and in turn allowing the vibrations to be heard.
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Planar magnetic or orthodynamic headphones: Planar magnetic headphones use a thin diaphragm suspended between a series of magnets. The diaphragm incorporates a thin conductor that is tracked backwards and forwards in line with the magnets and the audio signal passes through this to enable the diaphragm to move in line with the incoming signal.
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Balanced armature technology for in-ear monitors: the balanced armature headphone technology was initially developed for hearing aids. It is easily miniaturised and apart from hearing aids it is often used for in-ear monitors, etc where the small size of the headphone / earphone driver is important.
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Piezoelectric earpiece: The piezoelectric effect is an effect whereby when an electric potential is applied across a particular material, a stress will be set up. This causes the material to distort and hence it will move. These movements are then linked to a diaphragm to give sufficient air movement for the sounds to be heard.Materials the exhibit this effect are called piezoelectric materials and the include substances such as quartz, and a number of other ceramic based materials and crystals. Sometimes these earphones may be referred to as crystal earphones, and they tend to have a very high impedance.
Once we have confirmed the manufacture method and feasibility, our team started with conceptual design.This stage is very important as we have to take in consideration of the aesthetic look,component placement and feasibility of the design. 4 product designs were sketched (attached below) by taking these considerations. Then design team made a rough CAD model (which took about 2 hours)and took screen shots to give customer preview images.
After sending the images they have selected one design, our design team and customer will have a meeting to confirm the design and proceed to the next stage. In the design when we had the meeting the customer told to give a better aesthetic look to the headphone stand and the magnetic charger should not irritate the head.We gave one suggestion to give extra spacing for the mic which will give more aesthetic look to the design,customer agreed with that. This phase completely depends on the the customer.The time taken will be very less like the meeting will be as quick as 1 hour.
After all the above discussions we can start making the main CAD file of the product.The finalized requirements are :
- Technology : SLA 3d printing
- Expanding mechanism of headphone : sliding mechanism
- Housing interlocking mechanism : snap-fit mechanism
As per the request we had already sent the CAD file and got the feedbacks from the customer.After the approval of the product,we went on to manufacturing the parts.If the customer still give some changes, these changes will be chargeable.As we have to rework on which were not previously told by the customer. For our design there was no changes and the customer was satisfied with the product.
Task 4
Task 5
Failure mode effect analysis (FMEA) of headphones
Strategic organizations take a proactive risk-based approach to quality improvement, and perform such risk assessments by engaging cross-functional and multidisciplinary teams. The teams collectively inventory all potential failure modes, causes and effects, identify the severity of the effects and likelihood of the causes to calculate overall risk for a failure, and build controls to reduce the risk to an acceptable level.
Prior to this headphone incident, there have been incidents of exploding mobile phones on airplanes and electrical system problems stemming from lithium-ion batteries in newly introduced airplanes. It behooves battery manufacturers to make a list of all environments where their batteries could be used—hot; cold; high and low pressure; high and low altitude; subterranean; underwater; humid; dry; various battery charge levels; and so on—and learn from incidents affecting others in their industry. This is no easy task, but it can be simplified using a system that can help standardize a quality risk assessment workflow through a systematic progression from capturing of failure modes to the assessment of risk and identification of controls at various product development stages. Shared knowledge libraries can help disseminate historical knowledge and lessons learned to the teams responsible for product quality. Critical control lists identified as part of the FMEA can be traced throughout the product lifecycle— from concept to design to manufacturing and service—to ensure that the product will operate safely and reliably. Stage gate review and approval steps embedded within the product lifecycle can ensure proper application of the risk assessment procedures and effectiveness of identified controls before a product moves on to the next stages of development. There are various FMEA standards and guides used by the different manufacturing industries, for example, the automotive industry uses the AIAG FMEA handbooks, and medical device manufacturers proactively comply with standards such as ISO 13485, an internationally agreed-upon standard that sets out the requirements for a quality management system involving use of various risk techniques including the FMEA. The focus of risk management in discrete manufacturing is on both safety and performance of the products and includes risk assessment coverage across the supply chain. Often, there is intense pressure to release products sooner than later for economical reasons. However, releasing products without considering potential quality- and safety-related issues through a comprehensive risk assessment and corrective action process, at various stages of product life cycle, could result in product recalls, damage to reputation and liability costs.
With a carbon footprint of 14.2 kg CO2-eq, the average wireless headphone has the greatest environmental impact. This is mainly a result of their size: they simply need more materials to be produced. Wireless earbuds came in second place with 5.9 kg CO2-eq because they require most of the same components as the wireless headphones. Wired earbuds come in third with just 0.5 kg CO2 -eq. The reason is they are small and don’t need batteries.
The biggest impact hotspots are:
- The batteries for the wireless electronics.
- The electrical engineering parts for wireless electronics. Such as a PCBA – which is the small motor that performs the main functions of wireless earbuds and headphones.
- The plastics used for the production of wired headphones.
- The packaging for wired headphones.
Batteries need to be smaller & more efficient. Already implemented this change for one of their bestselling earbuds: Dime true wireless earbuds. The product now has a carbon footprint of just 2.4 kg CO2-eq. Consumers return old products to reverse logistics partners who analyze the state of the products. The returned products are then either upcycled or recycled. Both results help reduce impact by eliminating the production of completely new products and components.
Goal is to keep 1 million pounds of their products out of landfills by 2025. To this day, to meeting their goal with:
- Units withheld from landfills: 627,213
- Weight withheld from landfills: 525,620 lbs
Analyzing plastic alternatives to use, such as bioplastics or recycled plastic. Again, recycling old products plays an important role. Packaging simply has to be more sustainable. Packaging is now 100% recyclable, and the size of the packaging has been dramatically reduced. By reducing their packaging size by 20%, Skullcandy has also reduced the impact of transport and shipping.
Next to their ongoing sustainable product improvements, they:
- Partner up with various organizations that want to make measurable progress in the fight against climate change. One of these organizations is Protect Our Winters (POW), with whom they lobby senators and other state representatives (in the U.S) to take real action in policy and law-making tackling climate change.
- Implemented the Carbon Checkout Program on their website. When you buy a product on Skullcandy.com you can now opt to make your order carbon neutral. A small amount is added to your total, which their partner Carbon Checkout invests in renewable energy projects that offset CO2 emissions globally.
Enabling many to take the same steps toward a healthier planet.
- Business description – A distinct description of the employer’s operations and enterprise divisions.
- Corporate method – A summarization of the employer’s enterprise method.
- SWOT evaluation – A distinct evaluation of the employer’s strengths, weakness, possibilities and threats.
- Company history – Progression of key activities related to the employer.
- Major services and products – A listing of important merchandise, offerings and types of the employer.
- Key competition – A listing of key competition to the employer.
- Key employees – A listing of the important thing executives of the employer.
- Executive biographies – A quick precis of the executives’ employment history.
- Key operational heads – A listing of employees heading key departments/functions.
- Important places and subsidiaries – A listing of key places and subsidiaries of the employer, such as touch details.
- Gain key insights into the employer for educational or enterprise studies purposes. Key factors inclusive of SWOT evaluation and company method are integrated withinside the profile to help your educational or enterprise studies needs.
- Identify capability clients and providers with this document’s evaluation of the employer’s enterprise shape, operations, important services and products and enterprise method.
- Understand and reply in your competition’ enterprise shape and techniques with an in depth SWOT evaluation. In this, the employer’s center strengths, weaknesses, possibilities and threats are analyzed, presenting you with an updated goal view of the employer.
- Examine capability funding and acquisition goals with this document’s distinct perception into the employer’s strategic, enterprise and operational performance.
Fitness wearables successfully paved way for the popularity of wearable technology. The wearable technology/devices market is growing at a rapid pace from emerging to developed countries and is expected to drive the adoption of smart headphones/earbuds over the coming years. Despite the hesitation pertaining to wearables that exists even today, the apprehensions associated have significantly declined as consumers are becoming even more comfortable with the technology. A positive shift in consumer sentiments towards the adoption of wearables has primarily been social interaction and the need to monitor health at all times, which is also expected to catapult market growth. Over a period of time, consumers have become comfortable with the technology and are soon expected to realize the benefits of having to wear the technology in the form of smart headphones/earbuds. Although smart headphones/earbuds have not gained traction as expected, in comparison to the wearable devices, the future holds massive opportunities for this industry and the technology providers operating within this space.
Laser technology is creating a buzz with its entry in the smart headphones market. Headphones with laser technology are available in various types such as pulsating vibrant laser light to the sound of music and heartbeat. For instance, Glow headphone has wires that diffuse light from a laser, whereas BioSport powered by Intel has visible light and infrared sensors. Further, advancements such as headphones with fitness trackers, water resistant features are also expected to fuel industry growth
Analyst Perspective
Buying motives also play a significant role in driving sales - When a customer decides to purchase an earphone/headphone, rational and emotional buying motives often overlap and the dominant motive is hard to articulate. For instance, a customer may purchase a headphone for comfort and sound quality or in some cases the purchase could be made based on the product style or brand (Beats by Dre). In some cases, the purchase decision is made purely on aesthetic factors such as design and color. However, there is an underlying empowerment that governs the buying motive. Increasing adoption of headphones and earphones especially while working out and during office hours is propelling product demand. Manufacturers in the industry focus on high R&D investments to offer more customer centric innovations. Furthermore, high acceptance of wireless smart headphones with incorporated MP3 player across sports sector provides avenues for industry growth. The rising consumer disposable income along with shifting consumer preference towards purchasing expensive headphones/earphones for enhanced listening experience is expected to drive the market growth over the next few years.
The current TWS earphones market has developed from a dark horse to a swift horse. The steady growth of the market and sales year by year has promoted the rapid development of the Bluetooth headset market and brought many new opportunities. The beginning of all this is to officially cancel the 3.5mm audio interface on the iPhone 7 series mobile phones in 2016 and launch a new product line Apple AirPods true wireless headphones. As a giant in the field of science and technology, every expansion of a new product line indicates the future development direction of the industry. Once the Apple AirPods were launched, this dual-channel transmission technology with a charging compartment solution quickly led the market. Android and audio manufacturers have followed suit, and new brands have continued to join forcefully. After more than four years of development, the TWS true wireless earphones have become the fastest-growing consumer electronics product.