According to a report by International Data Corporation (IDC), India’s wearable market achieved a 34 per cent growth and shipped 134.2 million units during 2023. The fourth quarter of the year 2023 (Q4 2023) saw 28.4 million units, growing 12.7 per cent year-over-year (YoY). Though the festive period saw several new launches along with promotional offers and discounts, there was an overstocking situation through the second half (H2) of 2023. However, the average selling price (ASP) of overall wearables declined by 15.4 per cent from $25 to $21.2 in Q4 2023.
The report noted that smartwatch shipments soared by 73.7 per cent YoY, shipping 53.4 million. Within wearables, its share jumped to 39.8 per cent from 30.7 per cent in 2022. Festive season sales and heavy discounts led to a 38.7 per cent drop in ASPs from $42.5 to $26.1. The share of advanced smartwatches shrank from 4.5 per cent to 2.1 per cent to 1.1 million units.
Meanwhile, the earwear category registered a modest 16.9 per cent YoY growth, reaching 80.4 million units. Within earwear, the share of the truly wireless stereo (TWS) segment reached a record 67.3 per cent from 55.3 per cent in 2022, growing by 42.3 per cent YoY, whereas neckband shipments declined by 15.2 per cent. Annual ASPs for earwear stood at $18.2, declining by 8.2 per cent.
The report added that all three top vendors BoAt, Noise and Fire-Bolt managed to secure their respective positions in the overall wearable market through diversified product portfolios and constant innovations, but at lower ASPs. Boult Audio registered the highest YoY growth amongst the top five vendor list. BeatXP, a new entrant in smartwatch category, managed to enter the top smartwatch vendor list with aggressive online marketing. Titan climbed to fourth place with a strategic approach of launching multiple models across price segments.
The report further added that shipments to offline channels outgrew online ones, as vendors focused on expanding their retail presence, registering 55.6 per cent YoY growth. Meanwhile, offline channel share increased to 31 per cent in 2023, up from 26.7 per cent in 2022, and online channel shipments grew by 26.1 per cent YoY.
Furthermore, as per the report, the smart ring category garnered considerable attention, especially in H2 2023. More than 100 thousand smart rings were shipped in 2023 with an ASP of $171.6. Ultrahuman emerged as leader, with 43.1 per cent market share in Q4 2023, followed closely by Pi Ring at 42.3 per cent market share, and Aabo was in third place with 7.9 per cent share in the same period.
Commenting on the report, Anand Priya Singh, market analyst, wearable devices, IDC India, said, “Affordability, low product penetration and a plethora of options led to a surge in demand for smartwatches. However, the growing popularity of non-branded watches is impacting the incumbents, offering cheap alternatives of popular models, and are even bundled with multiple watch straps. These offerings essentially dilute the first-time user experience making it imperative for incumbent vendors to find alternate ways to attract first time users.”
Meanwhile, Vikas Sharma, senior market analyst, wearable devices, IDC India, said, “IDC estimates single-digit growth for wearables in 2024. Vendors will hasten their omnichannel strategy which is still dominated by online channel (e-tailer). This will require unique distribution partnerships and more affordable products to access tier-3 cities and beyond. In 2024, we will see a proliferation of smartwatches with long-term evolution (LTE) SIM/eSIM connectivity, advanced health sensors, and multiple global positioning system (GPS) navigation. In earwear, premium features like active noise cancellation (ANC), and multi-device pairing will be available at affordable pricing.”
