The wearable device market – in terms of shipments – is expected to reach 538 million units by the end of 2024.
The anticipated growth in the wearable device market will be 6.1 percent in 2024, with growth slowing to 3.9 percent in 2025, IDC report said.
Smartwatches account for a major segment but face challenges. Smartwatches market will drop 4.5 percent in 2024 due to market saturation in key regions like the US and India. Recovery in Smartwatches market is projected in 2025 with 1.7 percent growth, driven by replacement cycles.
Hearables is the largest category of wearables. Hearables market is projected to achieved 10.3 percent growth in 2024, with sustained growth in subsequent years fueled by innovation and affordability.
Emerging segments such as smart rings and glasses are gaining traction as alternative or complementary devices.
Innovations and new use cases drive interest in these categories, particularly in emerging markets and regions like China.
The wearable device market in India is struggling with an influx of low-cost smartwatch options, leading to inventory challenges and ASP pressures.
The wearable device market in the United States is facing a slowdown as many consumers still use devices purchased during the pandemic.
The wearable device market is shifting towards affordability and feature innovation across various price tiers.
Emerging categories like smart rings and display-free glasses are poised to drive growth as vendors diversify offerings.
The wearable device market will benefit from refresh cycles and sustained interest in hearables, despite maturity in certain categories.
While the wearable market is large and continues to grow, the pace of growth is slowing, signaling a shift toward market maturity in key regions and product segments.
“The rate of technological innovation among smartwatches along with consumer interest has slowed in recent quarters leaving vendors to innovate across price points instead,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC.
“Providing options both up and down the pricing ladders will likely be a key strategy for many vendors going forward along with a potential loosening of paywalled features to entice upgrades or new users,” Jitesh Ubrani said.
