India's wearable market shrinks for second straight quarter amid slow launches: IDC

Wearable market in India declines

Indians bought fewer smartwatches, earphones and other such gadgets, as the wearable device market shrank for the second straight quarter.

In the July-September period, 38 million wearable devices were sold, down 20.7 percent for the same period of the previous year, due to fewer product launches and cautious inventory management in the festival season, IDC has said.

For the first time since the second quarter of 2019, the average selling price (ASP) of wearables increased, rising 1.3 percent to $21.3 (around Rs 1,800) in Q3 2024.

Smartwatches see big dip 

Smartwatch shipments plummeted 44.8 percent YoY to 9.3 million units. Brands focused on clearing older stock through upfront discounts, particularly on e-commerce platforms.

The ASP for smartwatches edged up by 1.4 percent — from $25.8 to $26.2. Despite a 39.9 percent drop in advanced smartwatch shipments, their share increased slightly from 2.4 percent to 2.6 percent.

The earwear segment fell by 7.5 percent YoY to 28.5 million units. Within this category, Truly Wireless Stereo (TWS) accounted for a record 73.2 percent share, despite a slight 0.7 percent YoY dip.

Other earwear products, including wired and over-ear devices, declined 22 percent to 7.6 million units. The ASP rose 5.9 percent to $19.2.

Noise (Nexxbase) maintained its lead in the smartwatch segment, while boAt (Imagine Marketing) focused on clearing inventory during the festive sales. Among the top five brands, Boult and Realme were the only ones to record growth, with increases of 32.5 percent and 56.5 percent, respectively.

In the TWS market, Boult and Realme saw strong growth of 55 percent and 94.6 percent. Smartphone brand Nothing made significant strides, growing by 308.2 percent YoY in the overall wearables market.

Offline grows, online declines

The offline channel for earwear shipments grew by 9.4 percent YoY, increasing its share from 29.1 percent to 34.4 percent during the quarter, while online shipments fell by 14.4 percent.

In the smartwatch segment, online channels grew for a third consecutive quarter, reaching a 63.8 percent share in Q3.

Shipments from lesser-known brands, including white-label products, declined sharply by 59.1 percent YoY following a surge of 328.8 percent in Q3 2023.

Anand Priya Singh, market analyst for smart wearable devices at IDC India, said demand for smartwatches has tapered off in 2024, significantly impacting these smaller brands.

The smart ring segment continued to expand, with over 92,000 units shipped in the quarter. ASPs for smart rings dropped 16.2 percent YoY to $162.1.

Ultrahuman led the category with a 36.8 percent share, followed by boAt with 20.5 percent, and Pi Ring with 16.3 percent. Lower prices and upcoming product launches are expected to drive further growth in this segment.

The smartwatch market was facing challenges due to undifferentiated products and a limited number of active brands, Vikas Sharma, senior market analyst at IDC India said.

He expects the market to remain flat or see a slight decline in 2025 but noted an emerging trend of consumers gradually shifting from basic to advanced smartwatches, driven by demand for better health tracking and enhanced features.