India's Wearable Market Faces First Decline: IDC Report Reveals Contributing Factors

India’s wearable device market has declined by 10 percent year-over-year to 29.5 million units in Q2 2024. Key reasons include cautious inventory management and decreased new launches. Smartwatch shipments fell significantly while earwear remained stable with a rise in the TWS segment. Online channel sales increased amidst market challenges.

The wearable device market in India experienced its first decline, dropping by 10 percent year-over-year to 29.5 million units in the second quarter of 2024, according to IDC. Shipments in the first half of the year fell by 4.7 percent, totaling 55.1 million units.

The decline is attributed to vendors’ cautious inventory stocking and a focus on clearing old stock before the festive season, as well as fewer new product launches. The average selling price (ASP) for wearables hit a record low, decreasing by 10.3 percent from USD 21.0 to USD 18.8 in Q2 2024, as per IDC data.

Smartwatch shipments struggled significantly, falling by 27.4 percent year-on-year to 9.3 million units, with their share within wearables dropping to 31.5 percent from 39.0 percent in Q2 2023. Price cuts to clear inventory and brand discounts led to a drop in the ASP for smartwatches to USD 20.6 from USD 25.6 a year ago. Despite overall declines, advanced smartwatches grew by 21.9 percent in market share. The earwear category remained steady, growing by 0.7 percent year-on-year with 20.1 million units shipped.

In the earwear segment, the Truly Wireless Stereo (TWS) category reached a record 71.0 percent share, growing by 9.1 percent year-on-year. However, tethered and over-ear earwear shipments fell by 16.1 percent to 5.8 million units. The ASP for earwear declined by 4.2 percent to USD 17.2. A new subcategory, Open Wireless Solution/Open Ear solution, emerged within earwear.

The online sales channel for wearables grew to 63.4 percent from 62.0 percent in Q1 2024, expanding by 17.6 percent quarter-on-quarter. Offline channels posted an 11.1 percent growth quarterly. Additionally, the smart ring category witnessed growth with over 72,000 units shipped at an average price of USD 204.6. IDC anticipates more affordable smart rings launching during the festive season.

Regarding the smartwatch market outlook, Vikas Sharma, Senior Market Analyst at IDC India, noted that new model launches in the upcoming festive season may help curb the decline, although annual shipments for smartwatches are expected to drop by 10 percent in 2024. There could also be refreshed smartwatch portfolios from smartphone vendors targeting low to mid-price segments.

IDC is a global provider of market intelligence, advisory services, and global technology markets. With over 1,300 analysts worldwide, IDC offers expertise in over 110 countries, specializing in technology trends and market opportunities.