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Wearables to Face Continued Growth While Giving Way to New Form Factors
December 18, 2024 | IDCEstimated reading time: 1 minute
Global shipments for wearables are on track to grow 6.1% by the end of the year, reaching 538 million units according to new data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker. However, growth is expected to slow to 3.9% in 2025 as large markets such as US and India along with devices such as smartwatches and hearables approach maturity.
Smartwatches, one of the largest categories, are expected to decline 4.5% in 2024 as the second largest market, India, faces challenges from an influx of low-cost options which led to elevated levels of inventory and brought into question the sustainability of this race to the bottom in terms of average selling prices (ASP). Meanwhile, the US is also expected to decline as consumers are still sporting devices purchased during the pandemic. That said, recovery is expected in 2025 as smartwatch shipments return to 1.7% growth as consumers begin to refresh older devices.
“The rate of technological innovation among smartwatches along with consumer interest has certainly slowed in recent quarters leaving vendors to innovate across price points instead,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC. “Providing options both up and down the pricing ladders will likely be a key strategy for many vendors going forward along with a potential loosening of paywalled features to entice upgrades or new users.”
Meanwhile, the largest category of wearables—hearables—are expected to grow 10.3% in 2024 and maintain this growth trajectory in the coming years as emerging markets and refresh cycles kick-in. Though the category is mature, recent innovations such as open-ear designs as well as constant ASP reductions continue to fuel the category.
“Smart rings and glasses without displays are going to be the most interesting categories in the coming quarters as new entrants and new use cases help these products outshine other wearables,” continued Ubrani. “With growth slowing in smartwatches, some vendors are turning to rings as alternative or complementary health trackers. Meanwhile, Meta’s success with Ray-Ban has caught the eye of many fast-followers, particularly in China where Meta’s absence provides opportunity for local brands.”
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