Indian Wearable Market Sees Historic Downturn, Smartwatch Sales Fall: Report
A 10 per cent YoY reduction is attributed to smartwatch issues and stocking constraints, whereas TWS earbuds demonstrate resiliency
The Indian wearable market has experienced its first-ever downturn, as per a report by IDC. Falling 10 per cent year on year to 29.5 million devices in the second quarter of 2024. The smartwatch segment, in particular, saw considerable difficulty, with a steep 27.4 per cent YoY fall to 9.3 million units. Channel inventory difficulties and a lack of innovation are identified as important contributors to the slump.
According to IDC's most recent research, the wearable device market in India has experienced a historic fall, marking the first dip in its growth trajectory. The smartwatch category has been struck the hardest, with its market share among wearables falling from 39.0 per cent in Q2 2023 to 31.5 per cent this quarter. Oversupply of previous-generation models has resulted in inventory bottlenecks, while a lack of new advances has stifled consumer enthusiasm.
While smartwatches underperformed, the earphones market remained resilient, growing by 0.7 per cent year on year to 20.1 million units sold. True Wireless Stereo (TWS) earbuds, in particular, have grown in popularity, with their market share in the earbuds category rising from 65.5 per cent to 71 per cent, representing a 9.1 per cent year-on-year increase. In contrast, sales of wired and over-ear headphones fell by 16.1 per cent to 5.8 million units.
Boat continues to dominate the Indian wearable market, with a 26.7 per cent share, followed by Noise and Boult with 13 per cent and 8.1 per cent, respectively. Anand Priya Singh, a market analyst at IDC India, stated that cost challenges are prompting many firms to focus on e-tailer channels, especially during the holiday season. Major players continue to rely primarily on online sales, while smaller brands rely on traditional channels.
The smart ring category, while still in its early stages, has shown promise, with over 72,000 devices shipped in the second quarter of 2024. Ultrahuman dominated the segment with a 48.4 per cent market share, followed by Pi Ring (27.5 per cent) and Aabo (10.5 per cent). IDC forecasts the release of more affordable smart rings from prominent wearable brands during the forthcoming holiday season, which might help the segment's growth.
The survey emphasised the changing dynamics of the Indian wearable sector, with consumers increasingly favouring TWS earbuds over traditional headphones. The stagnation of the smartwatch segment highlights the need for innovation to rekindle customer interest.
