According to IDC’s India Monthly Wearables Tracker, the Indian wearables market saw 2.1% year-on-year growth in the first quarter of the year. 2024, reaching 25.6 million units. This growth was impacted by high inventory levels from the 2023 holiday quarters. Average selling price (ASP) for wearables decreased 17.8%, down from $22.62 to $18.59, a lowest recorded.
The Smartwatch segment shows signs of decline
In smart watches part, shipments fell for the first time since the fourth quarter of 2018, with a 7.3% year-on-year decline to 9.6 million units. The market share of smartwatches in the wearables category fell to 37.6% from 41.4% in the first quarter of 2023. The average selling price for smartwatches decreased from $29.24 to $20, 65 USD due to sales events and discounts. However, the share of high-end smartwatches increased from 2.0% to 3.2%.
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The headphone market witnesses growth amid segment transformation
The headphone market saw shipments increase by 8.3% over the same period last year, reaching 15.9 million units. The market share of the True Wireless Stereo (TWS) segment increased from 63.8% to 70.1%, marking a 19% year-over-year increase. Other types of earrings, such as laces and earmuffs, saw a 10.6% decrease in shipments. The selling price of earrings decreased by 7.3% to 16.62 USD.
The top five vendors BoAt, Noise, Fire-Bolt, Boult and Oppo maintained their positions, although their overall market share fell from 63.9% to 59.9%. High inventory levels have led to a decline in smartwatch shipments for the top three vendors, but Titan and BeatXP have seen their shipments increase significantly. In the headphone category, all the top five suppliers, except Boult, increased their exports.
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Retail channels See the changing dynamics
The market share of offline channels increased to 37.9% from 26.1% in the first quarter of 2023, while online shipments fell 14.1% year-on-year, marking the second quarter of decline. two in a row. Vendors are expanding their retail presence through partnerships with national and regional retail chains as well as bundling wearables with products such as smartphones and computers. handed. Anand Priya Singh, Market Analyst, IDC India, noted that these retail partnerships and product bundling could drive growth during the upcoming festive sales period.
In emerging categories, 64,000 smart rings were shipped in the first quarter of 2024, with an average selling price of $173.06. Ultrahuman leads this market with 43.9% market share, followed by Pi Ring with 40.1% and Aabo with 8.4%.
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According to Vikas Sharma, Senior Market Analyst, 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 double-digit decline in smartwatch shipments in 2024. However, headphone shipments are expected to increase in the mid-single digits, thanks to advances in AI and features like active noise cancellation.
