Marking its first downfall, the smart wearable market in India fell 10% YoY in Q2 2024 due to cautious inventory management and fewer new launches. With smartwatch shipments falling, other wearable segments saw minimal growth.
The wearable device market of India experienced a decline of 10% year-over-year in the second quarter of 2024, marking the first drop in its history, as reported by the International Data Corporation (IDC). The shipments in the second quarter of the year totalled 29.5 million units. This fall followed a 4.7% drop in the first half of 2024, with 55.1 million units shipped.
IDC highlighted that the key factors contributing to this downturn include cautious inventory management by vendors, who focused on clearing existing stock ahead of the festive season, and a slowdown in new product launches.
Additionally, the average selling price (ASP) for wearables reached a new low, falling by 10.3% from US$21.0 to US$18.8 in the second quarter.
However, new model launches are expected to boost the market during the festive season to counteract the decline.
Listing the top five smart wearable companies, boAt (Imagine Marketing) held a 26.7% share, with a decline of 9.8%. Noise (Nexxbase) saw a slight decrease to 13.0%, down by 13.9%. Boult increased its share to 8.1%, growing by 9.6%. Fire-Boltt’s share fell to 8.0%, a drop of 24.3%, while OPPO (OPPO + OnePlus) decreased to 7.6%, down by 35.8%. The ‘others’ category grew to 36.6%.
The smartwatch category faced challenges, with shipments declining by 27.4% YoY to 9.3 million units. The proportion of smartwatches within the overall wearables market decreased from 39.0% in the second quarter of 2023 to 31.5% in 2Q24. IDC attributed this decline to an oversupply of older models and a lack of innovation, which have hindered growth.
The average selling price (ASP) for smartwatches fell from US$25.6 to US$20.6 due to aggressive price reductions and promotional offers. However, advanced smartwatches saw a 21.9% increase, with their market share rising from 1.5% to 2.5%.
In the second quarter of 2024, Noise (Nexxbase) held a 25.7% share, declining by 32.4%. Fire-Boltt increased slightly to 24.2%, despite a 26.1% drop. boAt (Imagine Marketing) fell to 11.6%, with a significant decrease of 44.9%. Titan saw substantial growth to 7.9%, up 68.9%, while Boult rose to 3.9%, with a 16.6% decline. The ‘others’ category remained steady at 26.7%.
Experts noted that smartwatch shipments are projected to drop 10% in 2024, with potential portfolio updates from smartphone vendors in the budget to mid-price ranges.
In contrast, the earwear category showed minimal growth in Q2, increasing by 0.7% YoY to reach 20.1 million units. Truly Wireless Stereo (TWS) earwear achieved a record high within this segment, capturing 71.0% of the market compared to 65.5% the previous year, marking a 9.1% YoY growth.
In the second quarter of 2024, IDC India reported the market share and year-over-year growth of the top TWS companies. boAt (Imagine Marketing) held a 34.0% share, with a 5.1% increase. Boult grew to 12.9%, up by 47.1%, while Noise (Nexxbase) saw a 52.0% rise, reaching 9.2%. OPPO (OPPO + OnePlus) declined to 7.4%, down by 5.2%. Realme experienced the most significant growth, achieving a 77.1% increase to 6.4%. The ‘others’ category fell to 30.1%, with a 9.0% decline.
Meanwhile, other types of earwear, including tethered and over-ear models, saw a 16.1% drop in shipments with 5.8 million units. The ASP for earwear also declined by 4.2% to US$17.2.
A new subcategory within earwear has also emerged: Open Wireless Solution (OWS) or Open Ear Solution (OES). This niche segment includes models from brands such as PTron (Palred), Truke (Eccentric Enterprises), and Noise (Nexxbase), which offer affordable options, while Bose provides premium models.
Despite this performance, the report stated that the smart ring category is expanding, with over 72,000 units shipped in the second quarter of 2024 at an average selling price (ASP) of US$204.6.
Ultrahuman led with a 48.4% share in the smart ring segment, followed by Pi Ring at 27.5% and Aabo with 10.5%. Bonatra and Gabit held shares of 3.2% and 3.1%, respectively, while the ‘others’ category accounted for 7.3%. IDC anticipated that established wearable brands will introduce more budget-friendly smart rings during the festive season and the coming months.
In the case of online and offline market performance, experts at IDC noted that the online channel share increased to 63.4% from 62.0% in 1Q24, growing by 17.6% quarter-over-quarter, while offline channel shipments witnessed an 11.1% growth QoQ.
Commented market analyst Anand Priya Singh from Smart Wearable Devices, IDC India, “Due to cost pressures, many brands are shifting their focus toward e-tailer channels, particularly during festive periods. While several smaller brands rely on offline channels, the major players remain heavily dependent on online channels.”
