Wearable Market In India Grew 34% In 2023: Report

Analysts attribute this growth to the increasing adoption of TWS devices, driven by their user-friendly nature and the availability of a wide range of options at affordable prices

Smartwatch shipments surged by 73.7 per cent year-over-year, reaching a total of 53.4 million units

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Indian wearable device market saw a remarkable 34 per cent increase in 2023, reaching a record high of 134.2 million units, according to a report released on Friday. In the fourth quarter (Q4) of 2023 (October-December), there were 28.4 million units recorded, representing a 12.7 percent year-over-year growth, as per the International Data Corporation (IDC).

Smartwatch shipments surged by 73.7 per cent year-over-year, reaching a total of 53.4 million units. Within the wearables category, their market share rose from 30.7 per cent in 2022 to 39.8 per cent. During the festive season sales, substantial discounts contributed to a 38.7 per cent decrease in average selling prices (ASPs), dropping from $42.5 to $26.1. The proportion of advanced smartwatches declined from 4.5 to 2.1 per cent, totalling 1.1 million units.

"Affordability, low product penetration and a plethora of options led to a surge in demand for smartwatches. However, the growing popularity of non-branded watches is impacting the incumbents, offering cheap alternatives of popular models, and are even bundled with multiple watch straps," said Anand Priya Singh, Market Analyst, Wearable Devices, IDC India.

The report noted that all three major manufacturers, namely boAt, Noise, and Fire-Boltt, managed to establish their positions in the overall wearable market by offering diverse product portfolios and maintaining a focus on continuous innovation. However, this was achieved at lower average selling prices (ASPs).

The earwear category experienced a moderate 16.9 per cent YoY, reaching a total of 80.4 million units. According to Counterpoint Research, India's True Wireless Stereo (TWS) earbuds market shipments grew by 34 per cent year-over-year last year, with boAt maintaining its position as the market leader. boAt achieved a 39 per cent year-over-year growth and also expanded its product lineup to include options in the less than Rs 1,000 segment.

Analysts attribute this growth to the increasing adoption of TWS devices, driven by their user-friendly nature and the availability of a wide range of options at affordable prices.

"The shipments of ANC-based TWS devices recorded 76 per cent growth in 2023, with this feature now becoming available in entry-level price bands as well," said Senior Research Analyst Anshika Jain.

In the meantime, IDC predicted a single-digit growth for wearables in 2024.

"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 and multi-device pairing will be available at affordable pricing," said Vikas Sharma, Senior Market Analyst, Wearable Devices, IDC India.