Driven by China and emerging markets, with strong demand for basic watches and bands, the global wearable band market grew by 4 per cent in 2024. However, India suffers a setback.
The global wearable band market experienced steady growth in 2024, with shipments reaching 193 million units, a 4 per cent increase from the previous year, according to a report by Canalys, now a part of Omdia.
This marked the second consecutive year of growth following a market correction in 2022, signalling a rebound in the industry. The rise in demand was mainly driven by strong performances in China and other emerging markets, compensating for declines in more established regions like the US and India.
According to the report, the key drivers included the basic watch and basic band segments, which facilitated entry-level adoption, while competition intensified among major vendors such as Apple, Xiaomi, and Huawei.
China continues to lead, surpassing India and the US
China retained its position as the largest market for wearable bands, accounting for 30 per cent of global shipments in 2024. The market there saw an impressive 20 per cent year-on-year (YoY) growth, with Q4 shipments alone growing by 50 per cent. This surge was driven by a combination of government subsidies, product enhancements, and strategic ecosystem integrations.
In contrast, India and the US faced challenges. Shipments in India, the world’s second-largest wearable band market, fell by 22 per cent in 2024. This decline was attributed to difficulties faced by local vendors in improving the functionality and performance of basic watches, which made up 96 per cent of India’s wearable shipments.
Emerging markets drive volume growth
Emerging markets also played a crucial role in global market expansion. Vendors such as Xiaomi, Huawei, and TRANSSION boosted brand awareness and volume in regions like the Middle East, Southeast Asia, Latin America, and Central and Eastern Europe.
The Middle East experienced the strongest growth, expanding by 55 per cent year-on-year, followed by Southeast Asia (45 per cent), Latin America (21 per cent), and Central and Eastern Europe (20 per cent).
Much of this growth came from affordable basic devices as brands focused on price accessibility and expanding retail presence to capture new consumers.
Basic Watches and Bands Continue to Drive Market Trends
The basic watch segment remained a key growth driver, increasing by 8 per cent in 2024, following a significant 25 per cent rise in 2023. Companies like Huawei and Xiaomi held a combined market share of 41 per cent, diversifying their portfolios to include more advanced products such as Xiaomi’s Watch S series and Huawei’s Watch D series, which cater to business, sports, and health-focused consumers.
The basic band market also rebounded after years of decline. Shipments grew by 7 per cent in Q3 and surged by 49 per cent in Q4, driven primarily by Xiaomi, Samsung, and Huawei.
Samsung’s re-entry into the basic fitness band market with the Galaxy Fit 3 has intensified competition. This move has pushed Xiaomi to adjust its pricing and distribution strategies, particularly in Latin America, the Middle East, and Southeast Asia.
Samsung’s rationale focuses on attracting new users to the Samsung Health ecosystem through affordable wearables, guiding them toward higher-end smartwatches in the future while also broadening the ecosystem’s appeal to budget-conscious users.
Outlook for 2025: Innovation and Expansion Critical for Continued Growth
The wearable band market’s continued expansion in 2024 highlights the growing demand for affordable devices in emerging markets. However, mature markets face challenges, with slower upgrade cycles and stagnating innovation impeding growth.
Canalys’ Research Analyst, Jack Leathem, noted, “Success in 2025 and beyond will depend on balancing innovation with affordability, expanding global reach, and leveraging emerging trends, such as smart rings and advanced health tracking, to drive adoption.”
