India’s Wearable Market Sees Modest 2% Growth In Q1

India’s wearable device market experienced a modest 2.1 per cent year-over-year (YoY) growth in the first quarter of 2024, reaching 25.6 million units. 

This growth comes after a consistent streak of double-digit increases since the fourth quarter of 2017. The primary factor limiting expansion was the substantial inventory carried over from the festive quarters in the latter half of 2023, as per IDC analysis. 

Smartwatch shipments notably declined for the first time since Q4 2018, dropping by 7.3 per cent YoY to 9.6 million units. The share of smartwatches within the wearable market decreased from 41.4 per cent to 37.6 per cent compared to the same period last year. The average selling price (ASP) for smartwatches fell sharply from USD 29.24 to USD 20.65, largely due to aggressive e-tailer sales events and discounts. Despite the overall downturn, the share of advanced smartwatches increased from 2 per cent to 3.2 per cent, indicating a shift towards more sophisticated devices.

In contrast, the earwear category showed an 8.3 per cent YoY growth, with shipments reaching 15.9 million units. The Truly Wireless Stereo (TWS) segment led this growth, expanding by 19 per cent YoY and capturing 70.1 per cent of the earwear market, up from 63.8 per cent a year ago. However, other types of earwear, including tethered and over-ear models, saw a decline of 10.6 per cent. The ASP for earwear also decreased by 7.3 per cent, settling at USD 16.62.

The top five vendors in the wearable market—BoAt, Noise, Fire-Bolt, Boult and Oppo—retained their positions from a year ago, although their collective market share dropped from 63.9 per cent to 59.9 per cent, as smaller vendors gained ground. Within the smartwatch category, high channel inventory led to shipment declines for the top three vendors, while Titan and BeatXP achieved decent growth, with shipments doubling and tripling, respectively. In the earwear segment, most of the top five vendors increased their shipments, except for Boult.

Retail strategies also shifted significantly, with the offline channel’s share rising from 26.1 per cent in Q1 2023 to 37.9 per cent in Q1 2024. Meanwhile, online channel shipments declined by 14.1 per cent YoY, marking the second consecutive quarter of decrease. The smart ring market continued to gain momentum, with 64,000 units shipped in the first quarter of 2024 at an ASP of USD 173.06. Ultrahuman led this niche market with a 43.9 per cent share, followed closely by Pi Ring at 40.1 per cent and Aabo at 8.4 per cent.