Recently, Canalys, a third-party data agency, released a report indicating that global shipments of wearable wristband devices reached 44 million units in the second quarter of 2023, marking a 6% year-on-year increase.
Basic watches have continued their growth trajectory, now commanding nearly half of the market share at 46%. This surge can be attributed primarily to Indian manufacturers and leading smartphone companies like Huawei, Xiaomi, and Huami. Notably, in the second quarter of 2023, basic watches maintained an astonishing 73% growth in the Indian market, underscoring the Indian wearable wristband market’s vibrancy.
Despite a decrease compared to the same period in 2022, the basic bracelet market has maintained a stable market share of approximately 19%. This stability is primarily due to its affordability, as consumers remain cautious about pricier alternatives. On the other hand, the watch category has achieved double-digit growth, primarily driven by cost-effective basic watches.
In Q2 2023, manufacturers introduced new products to boost market share. Xiaomi and Huawei launched affordable bracelets and watches. Indian brands like Noise also expanded with entry-level models at different price ranges. Fire Boltt lowered prices to provide a great user experience for under $19.
As the market evolves, manufacturers are gradually defining the development trends of market segments to enhance their competitiveness. Currently, consumers can find not only budget-friendly entry-level products but also ones with more comprehensive functions. Advancements in screen technology are expanding the audience for smart wearables.
High-end manufacturers are improving product functionality, and raising prices. Google’s new smartwatches now cost $266, up from $216, due to added services and better user experience, in line with wearables market growth.
Canalys predicts that driven by shifts in consumer demand, the wearable wristband market will maintain an average annual growth rate of 4.1% until 2027.
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