India’s wearable market witnessed unprecedented growth in 2023, with 34 per cent surge in sales, reaching a historic high of 134.2 million units. The growth was fueled by good performances in both the smartwatch and earwear segments.
Smartwatch shipments saw 73.7 per cent year-over-year (YoY) increase, totaling 53.4 million units in 2023. Market dynamics shifted significantly as smartwatches claimed a larger share of the wearable market, growing from 30.7 per cent in 2022 to 39.8 per cent in 2023. The growth in smartwatch sales was due to festive season promotions and heavy discounts, which led to a notable 38.7 per cent drop in average selling prices, as per an IDC report.
In the earwear category, shipments experienced a modest 16.9 per cent YoY growth, reaching 80.4 million units in 2023. The Truly Wireless Stereo (TWS) segment emerged as the frontrunner, capturing a record share of 67.3 per cent of the earwear market. This growth came at the expense of traditional neckband earphones, which saw a decline in shipments by 15.2 per cent.
Top vendors in the wearable market, including BoAt, Noise and Fire-Bolt, maintained their positions by offering diversified product portfolios and constant innovations, albeit at lower average selling prices. Boult Audio stood out with the highest YoY growth among the top five vendors, while BeatXP made its mark as a new entrant in the smartwatch category through aggressive online marketing strategies.
A big shift was observed in the distribution channels, with offline channels outpacing online ones in terms of growth. Shipments to offline channels increased by 55.6 per cent YoY, accounting for 31 per cent of total shipments in 2023, up from 26.7 per cent in the previous year. The online channel also experienced growth but at a slightly slower pace of 26.1 per cent YoY.
The emergence of the smart ring category also garnered attention, with more than 100 thousand units shipped in 2023. Ultrahuman and Pi Ring emerged as the leaders in this category, capturing significant market share in the fourth quarter of 2023.
“IDC estimates single-digit growth for wearables in 2024. Vendors will hasten their omnichannel strategy which is still dominated by online channel (e-tailer). This will require unique distribution partnerships and more affordable products to access Tier 3 cities & beyond. In 2024, we will see a proliferation of smartwatches with LTE SIM/eSIM connectivity, advanced health sensors, and multiple GPS navigation. In earwear, premium features like Active Noise Cancellation (ANC), and multi-device pairing will be available at affordable pricing,” Vikas Sharma, Senior Market Analyst, Wearable Devices, IDC India said in a statement.
