While wearables remain a robust segment within the consumer technology space, companies may face challenges in sustaining high growth rates.
The wearables market is projected to continue its growth trajectory, although at a reduced pace in the coming years. According to the latest data from the IDC Worldwide Quarterly Wearable Device Tracker, global shipments of wearable devices are forecasted to grow by 6.1 percent in 2024, reaching a total of 538 million units by year-end.
However, the growth rate is expected to decline to 3.9 percent in 2025, as the sector begins to approach maturity in key markets such as the United States and India, and within major product categories such as smartwatches and hearables. This shift suggests that while wearables remain a robust segment within the consumer technology space, companies may face challenges in sustaining high growth rates.
According to the report, smartwatches, a major tech category, are expected to decline by 4.5 percent in 2024. India’s second-largest market faces challenges from an influx of low-cost alternatives, resulting in high inventory and concerns over decreasing average selling prices (ASP). The US market is also predicted to shrink as consumers stick with devices bought during the pandemic. However, a recovery is on the horizon for 2025, with a projected 1.7 percent growth in smartwatch shipments as consumers begin to upgrade their older devices. This presents a renewed opportunity for growth in the smartwatch industry.
The hearables category, which represents the largest share of the wearables market, is poised for robust growth. Shipments in this segment are forecasted to grow by 10.3 percent in 2024, with this positive trajectory expected to persist in the coming year. Although the smartwatch category is mature, recent innovations like open-ear designs and ongoing reductions in average selling prices (ASP) are driving continued growth and interest in the market.
Jitesh Ubrani, research manager at IDC, highlighted that smart rings and non-display glasses are emerging as the most exciting categories in the coming quarters. With smartwatch growth slowing, vendors are increasingly looking to rings as alternative or complementary health trackers. Meanwhile, Meta’s success with Ray-Ban has inspired local brands in China to seize the opportunity created by Meta’s absence.
