NEW DELHI: India’s wearable device market recorded its second consecutive quarterly decline, driven by a slowdown in new product launches and cautious inventory strategies. According to IDC’s latest data, the market for wearable devices—including smartwatches, wristbands, earwear, and fitness trackers—fell by 20.7% year-on-year (y-o-y) to 38 million units in Q3 2024.
Despite the festive season, subdued consumer demand and inventory adjustments weighed heavily on shipments. For the first time since Q2 2019, the average selling price (ASP) of wearables rose 1.3% y-o-y to $21.3 in Q3 2024, reflecting a shift towards higher-priced models.
Smartwatch shipments plunge
The smartwatch segment experienced the sharpest drop, with shipments falling by 44.8% y-o-y to 9.3 million units. Brands prioritised clearing older inventory during the festive sales period, often through aggressive discounts on e-commerce platforms.
Despite declining volumes, smartwatch ASPs rose slightly by 1.4%, from $25.8 to $26.2. Advanced smartwatches also saw a significant 39.9% y-o-y decline, though their market share improved marginally from 2.4% to 2.6%, suggesting a focus on premium offerings within this segment.
Earwear sees moderate decline
The earwear category saw a 7.5% y-o-y decline, with shipments totaling 28.5 million units. Within this category, Truly Wireless Stereo (TWS) products reached a record market share of 73.2%, up from 68.2% a year ago, although TWS shipments declined marginally by 0.7% y-o-y. Other earwear devices, such as tethered and over-ear models, suffered a sharper 22.0% drop, with shipments falling to 7.6 million units.
“As smartwatch shipments saw a swift uptake in 2023, white box shipments also increased multifold during the year. However, tapering demand for smartwatches in 2024 led to a sudden drop in share of these long tail brands, significantly impacting the overall festive shipments,” said Anand Priya Singh, market analyst, Smart Wearable Devices, IDC India.
Vikas Sharma, senior market analyst, Smart Wearable Devices, IDC India, added, “The smartwatch category remains stressed as we head into 2025 due to undifferentiated products and a limited number of brands in play. Its market is expected to remain flat or decline marginally in 2025.
However, we are seeing early signs of a gradual consumer shift from basic to advanced smartwatches, as the need for better health tracking with efficient sensors and advanced functionality is gradually coming to the fore.”
The earwear ASP increased 5.9% y-o-y to $19.2, indicating growing consumer interest in higher-quality products.
Noise (Nexxbase) maintained its leadership in the smartwatch category, while boAt (Imagine Marketing) focused on inventory clearance during festive sales. Among the top five brands, Boult and realme stood out, registering impressive growth of 32.5% and 56.5%, respectively.
In the TWS segment, Boult and realme continued to gain momentum with y-o-y growth of 55.0% and 94.6%, respectively. Meanwhile, Nothing, a smartphone brand, emerged as a standout performer in the wearable market, achieving an extraordinary 308.2% y-o-y growth.
Offline channels gain share
In the earwear segment, offline channel shipments grew by 9.4% y-o-y, increasing their market share from 29.1% to 34.4%. In contrast, online shipments declined by 14.4% y-o-y, reflecting shifting consumer preferences.
In the smartwatch segment, online channels maintained dominance, with their market share rising consistently over the past three quarters to reach 63.8% in Q3 2024. Shipments from smaller brands, including white-box manufacturers, plunged by 59.1% in Q3 2024. This marked a sharp reversal from the remarkable 328.8% y-o-y growth recorded in Q3 2023, underscoring the impact of consolidation and shifting consumer preferences toward established players.