India's wearable device market saw a 2.1 percent year-over-year growth in the first quarter of 2024, reaching 25.6 million units, according to IDC's India Monthly Wearable Device Tracker. This growth was influenced by high inventory levels from the festive quarters of 2023. The average selling price (ASP) for wearables decreased by 17.8 percent, dropping from $22.62 to $18.59, the lowest recorded.

Smartwatch Segment Shows Signs of Decline

In the smartwatch segment, shipments fell for the first time since the fourth quarter of 2018, with a 7.3 percent year-over-year decline to 9.6 million units. The market share of smartwatches within the wearables category decreased to 37.6 percent from 41.4 percent in the first quarter of 2023. The ASP for smartwatches dropped from $29.24 to $20.65 due to sales events and discounts. However, the share of advanced smartwatches rose from 2.0 percent to 3.2 percent.

Earwear Market Witnesses Growth Amidst Segment Shift

The earwear market experienced an 8.3 percent year-over-year increase in shipments, reaching 15.9 million units. The Truly Wireless Stereo (TWS) segment's share grew from 63.8 percent to 70.1 percent, marking a 19 percent year-over-year increase. Other types of earwear, such as tethered and over-ear, saw a 10.6 percent decline in shipments. The ASP for earwear decreased by 7.3 percent to $16.62.

The top five vendors, BoAt, Noise, Fire-Bolt, Boult, and Oppo, maintained their positions, although their collective market share dropped from 63.9 percent to 59.9 percent. High inventory levels led to a decline in smartwatch shipments for the top three vendors, but Titan and BeatXP saw significant increases in their shipments. In the earwear category, all top five vendors, except Boult, increased their shipments.

Retail Channels See Shifting Dynamics

The share of offline channels rose to 37.9 percent from 26.1 percent in the first quarter of 2023, while online shipments fell by 14.1 percent year-over-year, marking the second consecutive quarter of decline. Vendors are expanding their retail presence through partnerships with national and regional retail chains and bundling wearables with products like smartphones and laptops. Anand Priya Singh, a Market Analyst for IDC India, notes that these retail partnerships and product bundling may boost growth in the upcoming festive sales period.

In emerging categories, 64,000 smart rings were shipped in the first quarter of 2024, with an ASP of $173.06. Ultrahuman led this market with a 43.9 percent share, followed by Pi Ring at 40.1 percent and Aabo at 8.4 percent.

According to Vikas Sharma, Senior Market Analyst for IDC India, the smartwatch market in India is starting to slow down due to limited innovation and challenges in encouraging customers to upgrade. IDC forecasts a low double-digit decline in smartwatch shipments for 2024. However, earwear shipments are expected to grow by mid-single digits, driven by advancements in AI and features like active noise cancellation.

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