Indian wearables market sees modest growth in Q1 2024
The Indian wearables market experienced a slight increase of 2.1% year-over-year (YoY) in the first quarter of 2024, touching a total of 25.6 million units, according to IDC. This rise was primarily driven by high inventory levels carried over from the festive quarters of the previous year. However, there was a significant drop in the average selling price (ASP) for wearables by 17.8%, hitting a record low at ₹1,550.
Smartwatch segment records decline
For the first time since Q4 2018, the smartwatch segment witnessed a decline with shipments falling by 7.3% YoY to 9.6 million units. The market share of smartwatches inside the wearables category also decreased from 41.4% in Q1 2023 to 37.6%. The ASP for smartwatches dropped from ₹2,430 to ₹1,720 due to sales events and discounts, while the share of advanced smartwatches climbed slightly from 2.0% to 3.2%.
Earwear market sees growth, TWS segment dominates
Contrary to the smartwatch segment, the earwear market saw an increase in shipments by 8.3% YoY, reaching a total of 15.9 million units. The Truly Wireless Stereo (TWS) segment's share grew significantly from 63.8% to 70.1%, clocking a YoY increase of 19%. However, other types of earwear like tethered and over-ear witnessed a decline in shipments by 10.6%. The ASP for earwear also fell by 7.3% to ₹1,380.
Top vendors maintain positions
The top five vendors in the market - Boat, Fire-Bolt, Noise, Boult, and OPPO - managed to maintain their positions despite their collective market share decreasing from 63.9% to 59.9%. High inventory levels led to a loss in smartwatch shipments for the top three vendors. However, Titan and BeatXP saw shipments double and triple, respectively. In terms of retail channels, offline channels saw an increase in share from 26.1% in Q1 2023 to 37.9%, while online shipments fell 14.1% YoY.
Emerging categories and future predictions for wearables market
Smart rings also made their mark with shipments of around 64,000 units in Q1 and an ASP of ₹14,500. Senior Market Analyst for IDC India, Vikas Sharma, noted that the smartwatch market is beginning to slow down because of limited innovation, and difficulty encouraging customers to upgrade. IDC predicts a double-digit degrowth in smartwatch shipments for the year, but expects earwear shipments to climb mid-single digits due to advancements in AI, and facilities like active noise cancellation.
