The Malaysia Mobile Phone Accessories Market is estimated to be valued at USD 2.54 Bn in 2024 and is expected to reach USD 4.02 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.78% from 2024 to 2031.

The mobile phone accessories market in Malaysia has been witnessing significant growth over the past few years. Factors such as high smartphone penetration, rising disposable income, and increasing demand for advanced smartphone accessories like wireless headphones, portable power banks, cables and adapters have been driving the market. Moreover, young tech-savvy population in Malaysia actively adopts latest mobile phone accessories. Leading brands are launching innovative accessories on a regular basis to meet the changing consumer preferences. While basic accessories like protective cases and screen guards continue to remain top-selling, demand for smart accessories with enhanced features is growing steadily. However, intense competition in the market has led vendors to adopt competitive pricing strategies which could impact profit margins in the long run. To sustain the growth momentum, companies operating in this space need to emphasize on new product development and maintain quality across different price points.

Drivers of the Market:

Rising adoption of wearable accessories driving the market in Malaysia

The adoption of wearable technology such as smartwatches and fitness trackers has seen a significant rise in Malaysia over the past few years. As Malaysians become increasingly health conscious and integrate technology into their daily lives, the demand for accessories that complement lifestyle devices like smartphones has grown. Many users want accessories that allow them to leave the phone at home periodically but still remain connected through smartwatch notifications or activity trackers. As the functionality of these wearable devices expands, more people are motivated to purchase additional accessories like protective cases, charging cables, portable batteries and wireless headphones to get the most out of their connected experience.

This rise in wearable adoption is having a notable impact on spurring greater sales of complementary mobile phone accessories. Accessory retailers have responded by expanding their product lines to include more wearable-specific items. At the same time, traditional mobile phone accessory manufacturers are designing products with compatibility for smartwatches and fitness bands in mind. As the wearable market continues growing in Malaysia, it is broadening the ecosystem of accessory types that mobile users demand. This translates to increased revenue opportunities for accessory sellers that meet this evolving intersection of needs.

Growing smartphone penetration driving the market in Malaysia

The increasing smartphone penetration across Malaysia has been a key driver propelling the growth of mobile phone accessories market in the country. As per Department of Statistics Malaysia, the smartphone adoption rate rose from 65% in 2020 to over 75% in 2022 among Malaysian individuals. This rising dependency on smartphones for performing daily tasks has motivated consumers to purchase supportive accessories like chargers, cables, power banks, earphones etc on a regular basis.

This growing smartphone owner base demanding superior phone accessories experience is attracting many domestic as well as international players to enter this market. Local entrepreneurs are seizing the scope by launching innovative accessory brands catering to ever-evolving consumer preferences. E-commerce platforms too have expanded their accessory product catalogues multifold to cater to the surge in online shopping among Malaysians. As a result, the market is witnessing frequent new product launches across categories.

Market Challenges and Opportunities:

Presence of counterfeit products restraining the market in Malaysia

The presence of counterfeit products is posing a major challenge for the growth of mobile phone accessories market in Malaysia. The availability of low cost counterfeit products is attracting many customers which is negatively impacting the sales of legitimate brands and manufacturers. When customers purchase fake products thinking they are getting a good deal, their experience with the inferior quality of those products affects their future purchasing decisions. This leads to distrust among consumers regarding the quality and reliability of such products. As a result, many customers tend to switch to well-known brands even if they are costlier which restrains the overall market growth.

The proliferation of counterfeit products is also hurting the investments of legitimate businesses in research and development. With no incentive to invest in new technology and innovation, local companies curtail spending which impacts their ability to provide better products and services. It also discourages foreign investors who are wary of the market where intellectual property is not protected adequately. This leads to lesser availability of high-quality accessories incorporating latest features and specifications preferred by consumers. With dominant market share captured by substandard fake products, the legitimate market struggles to expand over the years.

Emergence of wireless charging technology

The emergence of wireless charging technology presents a great opportunity for the mobile phone accessories market in Malaysia. Wireless charging allows users to simply place their phone on a charging pad or surface to charge instead of plugging it in with a cable. This brings immense convenience as users no longer have to worry about looking for plug sockets or cables. As Malaysia moves towards becoming a developed nation with rising living standards, consumers will demand products that save time and improve convenience. Wireless charging caters directly to this rising need.

Focus on premium and trendy product segments: Major players like Samsung, Apple and Sony have focused on premium and trendy product segments like wireless headphones, portable chargers, screen protectors etc. This allows them to charge a premium and attract customers looking for higher-quality accessories. They regularly launch new designs and features to stay ahead of the trend. For example, when wireless earphones became popular in 2017, Samsung launched its Galaxy Buds which were a major commercial success.

Aggressive marketing campaigns: Leaders spend heavily on marketing campaigns featuring celebrities and influencers to promote their brands and new accessory launches. Samsung and Apple often tie up with popular actors and musicians to promote new products. For example, Samsung's campaign with Korean boy band BTS in 2019 saw a 40% rise in sales of its Galaxy Buds. This established the brand strongly among young audiences.

Wide distribution network: Ensuring pan-Malaysia availability through partnerships with telcos, consumer electronics stores and online retailers has helped key players dominate the market. For example, when it launched its AirPods in 2018, Apple partnered with major telcos like Maxis andDigi to set up exclusive retail zones, driving volume sales through bundling offers.

Accessory compatibility: Making accessories specifically designed for their own mobile brands allows companies to leverage existing customer loyalty. Compatibility with the latest phones motivates upgrades. Samsung launched USB-C headphones along with its Galaxy Note 10 in 2019, driving accessory attachments.

Quality and pricing: While affordability is crucial in a price-sensitive market like Malaysia, quality and reliability build credibility over time. Customers loyal to brands like Samsung and Sony are willing to pay slightly higher for the reassurance of genuine accessories. This positions them above low-cost alternatives.

Insights By Product Type - New accessories drive repeat purchases

In terms of By Product Type, New contributes the 67.4% share of the market as customers prefer purchasing unopened accessories. Mobile phone accessories see quick turnover as users upgrade their devices and seek the latest styles. This sustains demand for new product launches.

Purchasing new also gives customers peace of mind that the accessories will function properly right out of the box. Refurbished accessories may encounter earlier defects or shorter lifespans after previous use and repair. Users want reassurance that expensive accessories like headphones or charging cables will deliver reliable performance as advertised.

Retailers likewise emphasize new accessories to project image of quality and build customer confidence in their brands. Multi-brand stores in particular stock various premier accessory lines and promote new, sealed packages as a hallmark of authenticity and quality control.

Over time, repeat customers associate certain retailers as trusted sources for genuine new products. This encourages future accessory purchases whether upgrading worn items or obtaining extra units as gifts. The new product segment therefore drives ongoing sales revenues in the mature Malaysian market.

Insights By Distribution Channels - Online convenience expands accessibility

In terms of distribution channels, the online segment contributes the highest share to the Malaysia mobile phone accessories market. Both company websites and third-party platforms expand accessibility of accessories to all locations.

Customers appreciate the convenience of browsing, comparing and purchasing from a huge selection of items without leaving home. Official sites group all a company's latest product lines together while marketplaces consolidate options from many brands.

Product research and purchases can happen any time without store operating hours. Payment and delivery services also provide round-the-clock order tracking and estimated arrival timeframes. This level of convenience has broadened the potential customer base beyond major cities.

Online discounts and loyalty programs also make accessories more affordable. Reviews and Q&A help buyers make informed selections suitable for their needs. Over time, consistently positive shopping experiences have increased Malaysian consumers' trust in transacting online.

The pandemic has further accelerated e-commerce adoption, solidifying online channels as the preferred way to shop for mobile accessories going forward. Multi- and single-brand stores are adapting through increased own online presences and partnerships for marketplace listings and deliveries.

Insights By Accessories - Convenience and affordability drive wired earphone popularity

In terms of By Accessories, Wired Earphones contributes the 21.1% share of the market owing to their convenience and affordability. Wired earphones remain a staple accessory for mobile phone users due to their simple plug-and-play functionality. Users can skip pairing and charging steps and immediately listen to music or take calls with wired earphones.

Their wired connectivity is also more reliable than wireless options that can experience signal drops or delays. This makes wired earphones a safer choice for important calls or when uninterrupted listening is essential. Audio quality also tends to be better than most affordable wireless options.

Additionally, wired earphones are significantly cheaper than wireless alternatives like neckbands, headphones or true wireless earbuds. With price being an important consideration for many Malaysian consumers, the low cost of wired earphones extending their appeal. Basic wired earphone models can be found for under RM20, putting them in reach of all smartphone owners.

The ubiquity of phones with standard 3.5mm headphone jacks has also supported wired earphone usage. However, some manufacturers are now omitting headphone jacks which could impact the segment going forward. for now though, wired earphones remain entrenched as the easiest and most cost-effective way to listen privately on mobile devices in Malaysia.

Apple Inc., Bose Corporation, JBL Incorporated, Koninklijke Philips N.V., OnePlus, Bose Corporation, JBL Incorporated, Koninklijke Philips N.V., OnePlus, Oppo, Samsung Electronics Co., Ltd., SanDisk Corporation, Sony Corporation, Xiaomi Corporation.

• In December 2023, JBL Incorporated, a prominent audio equipment manufacturer known for its high-quality sound solutions, launched the JBL Quantum TWS Air. These true wireless gaming earbuds feature JBL QuantumSURROUND sound powered by 6.8 mm drivers and come with a 2.4GHz USB-C wireless dongle for low-latency gaming, providing an immersive audio experience for gamers.
• In September 2023, Apple Inc., a leading technology company known for its innovative consumer electronics, launched the Apple Watch Series 9. This latest model features a new S9 chip and a brighter display, available in 41mm and 45mm sizes with aluminum and stainless-steel cases, along with a variety of strap styles. The watch also offers cellular connectivity, enhancing its functionality for users.
• In April 2023, Samsung Electronics Co., Ltd., a global leader in technology and consumer electronics, announced the availability of the Peloton Watch App for its Galaxy Watch5 and Watch4 series. This integration allows users to seamlessly sync their smartwatches with a variety of Peloton equipment, including the Bike, Bike+, Tread, Row, and Guide. Through the app, users can monitor their heart rate directly on their smartwatch during workouts, enhancing their at-home fitness experience with greater control and insight.
• In January 2024, Sony Corporation, a global leader in electronics and entertainment, launched the new SRS-XV500 speaker, designed to let users party louder for longer, anywhere. This portable speaker features powerful sound, built-in lighting, and a long-lasting battery, making it ideal for any celebration. The SRS-XV500 also includes a karaoke function, allowing users to plug in a microphone and enjoy their favorite songs.
• In January 2024, Xiaomi Corporation, a leading global technology company known for its innovative consumer electronics, announced the launch of the Redmi Buds 5 and Redmi Buds 5 Pro. These new true wireless earbuds are equipped with active noise cancellation capabilities and feature substantial 12.4mm drivers along with a dual-microphone setup that utilizes Artificial Intelligence technology to enhance noise cancellation.

• By Accessories
  • Wired Earphones
  • Neckband
  • Headphones
  • TWS (ear buds)
  • Chargers
  • Data Cable
  • Power Banks
  • Smart Watches
  • Speakers
• By Product Type
  • New
  • Refurbished
• By Distribution Channel
  • Online
    • Company-owned Channel
    • Third-party Channel
  • Offline
    • Multi-brand Store
    • Single Brand Store
    • Reseller