According to the world health organization (WHO)
- There are 360 million people worldwide who have hearing loss (About 5% of worldwide population), and 10% of those with hearing loss use hearing aids.
- Hearing loss is most prevalent among adults (91%) while occupational injury and children make up the rest (9%).
- 33% of adults over 65 have hearing loss while 50% of adults over 75 have hearing loss.
- In China, there are approximately 70 million people with disabling hearing loss yet only 1% have gotten help so the market potential is vast.
Everyone is working on a hearable – http://www.wareable.com/samsung/best-hearables (Source: Wareable.com)
- Apple Airpod
- Samsung PSAP ‘Earcle
- Google Project Aura hearable
- Microsoft Clip hearable (Cortana)
Hearables Currently on the Market
- Hearing Aids
- Personal Sound Amplifiers (PSAPs)
Hearing Aids Market
- In 2012, about 10 million net units of hearing aids were sold worldwide, and sales average growth rate is about 3-6% per year:
- –About 41% – Europe
- –About 29% – North America
- –About 21% – Asia
- –About 9% – rest of world
- Each hearing aids with an average unit costing $1500 USD, that accounting for a 15 billion dollar industry.
- High end hearing aids costing $3000-$6000 US per ear can transpose high frequency sounds but they also process the vowels at the same time causing distortion and the resulting “adjustment period”.
- Due to the high price of regular hearing aids, a booming industry of “Personal Sound Amplification Devices” (PSAP) has emerged.
PSAP Market (Personal Sound Amplification Products)
- In 2009, PSAP was defined by the U.S. Food and Drug Administrationas wearable electronic products.
- Difference between PSAP and Hearing Aids
- Defined as electronic products, not FDA regulations
- Design is more flexible and aesthetic appearance
- Different sales channels and price
- PSAP has more diversity business models
- Hypermarket（Costco, Carrefour…etc）
- Internet store（Amazon…etc）
- Private Brand Hearing Center
- In 2012, 1.5 million units of PSAPs were sold in the US averaging $200-$500 per unit, and with an average price of $300. The market is estimate to be 4.5 billion dollars.
Current Market Status
Apple / Samsung mobile phone engagement with PSAP / Hearing Aids