Beyerdynamic was founded in 1924 by the Russian electrical engineer, Eugen Beyer as the Elektrotechnische Fabrik Eugen Beyer company. It was founded in Berlin to build cinema speakers and continues to produce microphones, headphones, wireless audio systems and conference systems today. It is a family run company that now has subsidiaries worldwide.

After becoming stranded in Berlin on the outbreak of the First World War due to holidaying there at the time of the outbreak, Beyer and his family had to begin a new life in Berlin. While living there, Beyer began studying at the Technische Universität Berlin. He was interested by motion pictures and felt compelled to add sound to these moving images. It was at this point that he established Beyerdynamic. The company made great progress in a short amount of time and was producing loudspeakers, microphones and headphones by 1939.

The company was completely destroyed during the Second World War, so after the war ended, they rebuilt in the American zone. Unfortunately, Beyer died in 1959 at the age of 56, so his son, Fred R. Beyer took over the company. He became the longest serving head of the company and was the last Beyer to lead it, retiring in 2002.

There is a British subsidiary known as Beyerdynamic GB Limited, later known as PolarAudio.