According to India Monthly Wearable Device Tracker report by International Data Corporation (IDC), India’s wearable device market grew by 2.1 per cent year-on-year (YoY) to 25.6 million units after growing by at least double digits consecutively since fourth quarter (Q4) of 2017 (Q4 2017). The growth was restricted by the high inventory carried over from the festive quarters in the second half (H2) of 2023 (H2 2023). The average selling price (ASP) for overall wearables declined by 17.8 per cent in Q1 2024, from $22.62 to $18.59, a record low.
The report noted that smartwatch shipments declined for the first time since Q4 2018, by 7.3 per cent YoY to 9.6 million units. The share of smartwatches within wearables dropped to 37.6 per cent from 41.4 per cent in Q1 2023. Excess inventory in the online channel and fewer new launches led to this decline. In addition, smartwatch ASPs dropped to $20.65 from $29.24 in 2023 on the back of e-tailer sales events and discounts. Meanwhile, the share of advanced smartwatches increased from 2.0 per cent to 3.2 per cent.
As per the report, earwear category grew by 8.3 per cent YoY, shipping 15.9 million units. Within earwear, the share of the truly wireless stereo (TWS) segment reached 70.1 per cent from 63.8 per cent in 2023, growing by 19 per cent YoY. Other shipments of earwear (including tethered and over-ear) declined by 10.6 per cent. Further, ASPs for earwear declined by 7.3 per cent to $16.62.
The report highlighted that top five vendors namely BoAt, Noise, Fire-Bolt, Boult, and Oppo, remain unchanged since 2023. Although their collective share declined from 63.9 per cent to 59.9 per cent, the long tail of smaller vendors gained share. Within the smartwatch category, shipments of the top three vendors declined due to high channel inventory. However, Titan and BeatXP grew by two and three times respectively. In addition, in the earwear category, all vendors from the top five grew their shipments, except Boult.
Further it added that offline channel share increased to 37.9 per cent from 26.1 per cent in Q1 2023. Also, online channel shipments declined by 14.1 per cent YoY in Q1 2024, its second consecutive quarter of decline.
Moreover, the report stated that the momentum for the smart ring category continues, with 0.064 million smart rings shipping in Q1 2024 at an ASP of $173.06. Ultrahuman continues to lead the smart ring market in India with a 43.9 per cent share, followed closely by Pi Ring at 40.1 per cent and Aabo at third with an 8.4 per cent share.
Commenting on the report, Anand Priya Singh, market analyst, smart wearable devices, IDC India, said, “Vendors have started focusing on retail expansion via partnerships with large format national and/or regional retail chains and bundling wearables with other product categories like smartphones, laptops, etc. It will be interesting to see if these initiatives help bring back the growth momentum, especially in the festive sales period in the H2 2024.”
Meanwhile, Vikas Sharma, senior market analyst, smart wearable devices, IDC India, said, “The smartwatch market is showing early signs of a slowdown in India. The vendors are facing challenges in luring customers to upgrade due to limited innovation and freshness in newer models. IDC expects a low double-digit annual shipment decline for smartwatches in 2024. At the same time, earwear shipments are expected to grow by mid-single digit, driven by artificial intelligence (AI) capabilities and affordable yet advanced features like active noise cancellation options.”
