India’s Wearable Market Shrinks 20.7% YoY In Q3 FY24 : Report

India's wearable device market witnessed a sharp 20.7 per cent year-on-year (YoY) decline to 38 million units in the third quarter of FY24, according to the International Data Corporation (IDC) India Monthly Wearable Device Tracker. This marks the second consecutive quarterly drop, driven by reduced product launches and a cautious inventory approach, even during the festive season.

For the first time since Q2 FY19, the average selling price (ASP) of wearables increased by 1.3 per cent to USD 21.3 (~Rs 1,790). The smartwatch category experienced a significant decline of 44.8 per cent YoY to 9.3 million units, with brands focusing on clearing older inventories through discounts on online platforms. Advanced smartwatch shipments also fell by 39.9 per cent, though the segment's market share slightly increased to 2.6 per cent from 2.4 per cent last year.

In contrast, the earwear category dropped 7.5 per cent YoY to 28.5 million units. However, the Truly Wireless Stereo (TWS) segment within earwear achieved a record market share of 73.2 per cent. Notably, offline earwear shipments grew by 9.4 per cent YoY, increasing their share from 29.1 per cent to 34.4 per cent, while online shipments fell by 14.4 per cent.

Among top brands, Boult and Realme outperformed, registering YoY growth of 32.5 per cent and 56.5 per cent, respectively, in the smartwatch category. Smartphone brand Nothing recorded a remarkable 308.2 per cent YoY increase in overall wearable shipments. Meanwhile, Noise maintained its leadership in smartwatches, and BoAt led in the TWS segment.

Amit Khatri, Co-Founder, Noise said, “Amid market trends like consolidation, premiumisation, and evolving consumer expectations, we have not only weathered these changes but thrived, with a 10-15 per cent year-on-year increase in average selling prices across marketplaces. Our strong double-digit repeat purchase rates in the smartwatch category underscore the growing demand for high-end offerings. Our resilience and adaptability are a testament to our deep understanding of market dynamics, earning us the trust and validation of both consumers and strategic investors like Bose, further validating Noise's strong growth and market position.”

The smart ring category emerged as a bright spot, shipping over 92,000 units in Q3 FY24, with its ASP dropping 16.2 per cent to USD 162.1 (~Rs 13,635). Ultrahuman held the top position with a 36.8 per cent market share, followed by BoAt (20.5 per cent) and Pi Ring (16.3 per cent).

Vikas Sharma, Senior Market Analyst, IDC India, observed that the smartwatch market faces challenges such as undifferentiated products and limited brand activity. “The market is expected to remain flat or see a marginal decline in 2025. However, we anticipate a gradual consumer shift towards advanced smartwatches with better health tracking and advanced functionality,” Sharma added.