Wearables market to grow 4.8% to 194.3m units in 2024

• Smart rings present an opportunity to differentiate products in an increasingly homogenous market.
• Xiaomi and Huawei release increasingly capable and affordable basic watch models, catering to price-conscious consumers.

The wearable market is expected to grow 4.8 per cent year on year in 2024 to reach 194.3 million in shipments compared to 185.4 million units a year ago.

In 2025, according to research firm Canalys, the market in 2025 is expected to witness a year-on-year growth of 10.2 per cent to 214.1 million units.

The wearable technology market has witnessed a remarkable shift in consumer preferences, with basic watches emerging as the dominant force, capturing a remarkable 48 per cent share of the wearable band market in the first quarter of 2024.

The trend is expected to continue, with a forecasted 46 per cent shipment share for the full year, as vendors like Xiaomi and Huawei release increasingly capable and affordable basic watch models, catering to price-conscious consumers.

“As user experience, tracking, and smart features of basic watches progress, more consumers are opting for these affordable models to meet most of their needs. The longer battery life of basic watches is a significant draw for many users,” Jack Leathem, Canalys Research Analyst, said. 

However, he said the basic watch growth is expected to be overshadowed by smartwatch expansion in the long-term, which will address more sophisticated use-cases as battery life and cost competitiveness improve in the smartwatch segment.  

Smartwatch shipments, which experienced a 9 per cent decline in the first quarter, are projected to rebound for the year, fuelled by the anticipated release of upgraded devices in the latter half.

Cynthia Chen, Canalys Research Manager, said the growth trend reflects the evolving consumer expectations, as users seek more detailed and personalised healthcare solutions.

“Vendors such as Huawei, Zepp Health, and Samsung are pivoting towards software services, integrating advanced sensors, algorithms, and AI to offer comprehensive health insights, contributing significantly to the expected increases in smartwatch shipments.”

To stay competitive in the wearable market, she said that vendors must recognise the growing importance of bundling and trade-in deals. Consumer price sensitivity has driven the popularity of basic watches, and offering aggressive trade-in discounts on new generation devices can make expensive flagship models more affordable and accessible, encouraging consumers to upgrade.

The strategy, similar to bundling basic watches, not only boosts shipments but also fosters ecosystem loyalty and consumer retention.

Furthermore, vendors should continue to explore innovative use-cases by expanding their model portfolios to include ultra-premium smartwatches and smart rings.

Developing ultra-premium smartwatches can enhance a brand’s image, create higher-margin products, and provide a platform for introducing premium features that can later be integrated into other flagship devices.

Canalys said that smart rings, on the other hand, present an opportunity to differentiate products in an increasingly homogenous market, offering a premium extension to smartwatches and further elevating the consumer experience.

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