Office headsets market shows new strength after period of uncertainty

The market for office headsets has faced a barrage of challenges over the last few years, with volumes falling from 37.5 million units in 2021 to 36.9 million in 2022. However, a new report from Futuresource Consulting shows a strengthening of the market, with signs that renewed demand will take hold during the second half of 2023. 

AV budgets under strain, but new opportunities emerge

“In the wake of macro-economic uncertainty and supply chain issues, difficult economic conditions have put pressure on AV budgets,” says Scarlett Woodford, Senior Market Analyst, Futuresource Consulting. “This led to the postponement of major spending, and widespread redundancies across the tech sector. Alphabet, Amazon, Apple, Dell, Intel, Logitech, Meta and Microsoft all reported substantial lay-offs during the first half of 2023, with many referencing a downturn in sales as the reason for cutting jobs. 

“Yet as we prepare to exit 2023, we’ve seen the last six months produce return-to-office mandates from an increasing number of enterprises. Many are looking to use new technology as an incentive for attendance. Despite reduced AV budgets, headsets are likely to be the go-to video conferencing peripheral that they invest in.” 

The return to office creates a strong opportunity 

The technology shift from phones to video calls, made mainstream by COVID-19 and hybrid working, shows no signs of receding. While laptops often include a built-in webcam, the default output for audio is built-in speakers. This can be extremely distracting in a shared office environment. And although enterprises have invested in huddle rooms and private telephone-booth-style spaces, these are often over-subscribed.  

Additionally, with enterprises now able to redirect AV expenditure away from desk phones, the opportunity for headset vendors is beginning to gain momentum. Futuresource expects wired headsets to remain the most popular form factor, with competitive pricing making it a logical choice for decision makers when operating within restricted budgets. 

Jabra and Poly lead the way in a fragmented market

Looking at the brands, Jabra leads the way, accounting for around two in every five headsets sold in 2022. Poly takes second position, and is the only other vendor with a double-digit market share. In an increasingly competitive market, with lower-priced Chinese vendors entering the market, fragmentation is on the rise.  

“Despite the challenges, the market has regained its upward trajectory,” says Woodford. “From a value of $2.37 billion in 2022, we expect revenues to climb to more than $2.8 billion worldwide in 2027.” 

For more information on Futuresource Consulting’s new global office-based headset market report, or to make a purchase, please contact Ben at ben.thrussell@futuresource-hq.com. 

About the author

Scarlett Woodford

Scarlett is a Senior Market Analyst in the Collaboration team at Futuresource Consulting, responsible for researching and consulting on the ways we work together, in an increasingly hybrid landscape.

 With a background in telecommunications and connectivity services, Scarlett is particularly interested in the impact of new technologies on existing business models.

 Scarlett has a degree in Psychology from the University of Surrey and has previous experience working as a research analyst in the service provider market.