Global wearables market sees growth in Q2 2023

The basic watch category continued to grow, capturing nearly half the market

by Gulf Business

September 20, 2023

Image credit: Getty Images

According to Canalys estimates, vendors shipped 44 million wearable bands worldwide in Q2 2023, representing year-on-year growth of 6 per cent.

“The wearables market is coming back to life, driven by increasing consumer demand in various aspects of daily life,” said Jack Leathem, research analyst at Canalys. “Demand across different segments is rebounding, leading vendors to address specific consumer needs.”

The basic watch category continued to grow, capturing nearly half the market, mainly thanks to Indian players and major smartphone vendors, such as Huawei, Xiaomi and Huami.

In the Indian market, basic watches continued their phenomenal momentum, with shipments up 73 per cent, underscoring the vibrancy of the country’s wearables market.

Despite a year-on-year decline, basic bands maintained a stable market share at 19 per cent, thanks to the availability of affordable options and consumers’ cautious attitudes to higher-priced alternatives.

Meanwhile, the watch category has seen substantial double-digit growth, primarily propelled by competitively priced basic watches.

Vendors introduced a slew of new wearables in the second quarter to bolster their market presence.

For example, Xiaomi and Huawei launched basic bands and watches. Indian vendors have followed suit, with brands such as Noise introducing entry-level models while also launching some higher-priced products to cater to other customer segments.

Fire-Boltt has further cut prices, offering consumers exceptional value with an average selling price below $19.

“As the market evolves, clear segmentation trends are emerging among vendors, aiming to boost competitiveness,” added Leathem.

“Consumers can now find entry-level products that are not only more affordable but also packed with enhanced features. Advances in screen technology are increasing the reach of smart wearables to a wider audience. Meanwhile, premium vendors are concentrating on enriching features and delivering added value, leading to an uptick in average selling prices.

For example, Google saw its average smartwatch selling price jump from US$216 to US$266, thanks to the integration of additional services and value. This strategy reflects a progressive vision that prioritizes value beyond just the hardware, mirroring the rapid progression of the wearables market.”

“In light of current economic challenges, wearables maintain significant long-term prospects,” said Cynthia Chen, Canalys research manager.

“Though short-term economic factors push consumers to value-driven wearables, their enduring appeal lies in consistent quality and long-term data benefits. Canalys forecasts the wearables market is poised for sustained growth at a CAGR of 4.1 per cent through to 2027, underpinned by shifting consumer needs.”