The global smart wearables market is on an upward trajectory, with impressive growth projections despite the challenges posed by the Russia-Ukraine conflict and the after-effects of the COVID-19 pandemic. According to market research, the global smart wearables market is set to expand from $20.64 billion in 2022 to $23.33 billion in 2023, marking a robust compound annual growth rate (CAGR) of 13.0%. This growth is underpinned by the increasing demand for wireless sports and fitness devices, particularly smartwatches, among a diverse range of users.
Global Challenges and Their Impact
The Russia-Ukraine war has introduced considerable uncertainty into the global economy. Economic sanctions on multiple countries, surges in commodity prices, and supply chain disruptions have caused inflation across goods and services, affecting markets worldwide. Despite these challenges, the smart wearables market is resilient, and experts anticipate continued growth. By 2027, the market is expected to reach $34.39 billion at a CAGR of 10.2%.
One of the key drivers of this growth is the surging popularity of smart devices like smartwatches among athletes, cyclists, runners, swimmers, and fitness enthusiasts. These devices provide valuable data on calories burned, activity levels, and other health metrics, fostering a healthier and more active lifestyle.
Recovery and Growth in Wearable Shipments
After experiencing a decline in 2022, worldwide shipments of wearable devices are poised for a rebound in 2023, with a projected total of 504.1 million units. This growth represents a 2.4% year-over-year increase, primarily driven by the sustained demand for earwear and smartwatches. The International Data Corporation (IDC) expects this trend to continue, with shipments reaching 629.4 million units in 2027, resulting in a CAGR of 5.0%.
India's Emerging Role in the Smart Wearables Market
India's smart wearables market has been a notable success story, experiencing rapid growth in the first half of 2023. According to IDC data, the sector witnessed an impressive 53% year-over-year increase in sales. In the first half of the year, more than 57.8 million smart wearables were shipped in India. Smartwatches, in particular, gained significant popularity, capturing 40% of the total market share, up from 26.8% a year ago.
Breaking down the numbers for the second quarter, a total of 32.8 million wearables were shipped, reflecting a remarkable 37.2% year-over-year growth and a 30.6% increase over the previous quarter. Smartwatch shipments nearly doubled, rising from 6.4 million in Q2 2022 to just under 12.8 million in Q2 2023. Earwear also saw a 15% year-over-year increase, with nearly 20 million units shipped.
Key Players in India's Smart Wearables Market
In terms of market share, several brands have emerged as key players in India's smart wearables market:
boAT: Leading the wearables space with a 26.6% market share, boAT experienced a 6.5% year-over-year growth. The brand's headphones, particularly its truly wireless offerings, contributed significantly, holding a 35.3% market share. boAT also ventured into the affordable smart ring segment.
Noise: Securing the second position with a 13.5% market share, Noise recorded an impressive growth of 61.6% compared to the previous year. The brand´s smartwatches and headphones have had a significant impact on the Indian market.
Oppo and OnePlus: Maintaining the third spot with a 9.5% market share, Oppo and OnePlus continue to be relevant players in the Indian market. The Bullet Wireless Z2 and TW Nord Buds 2 account for a substantial portion of their shipments.
Despite the ongoing macroeconomic challenges, the demand for wearables remains strong, positioning the market for continued growth. Anticipated device releases in the coming years and the replacement of older devices are expected to fuel this growth. Emerging markets, including India, are projected to play a crucial role, with many first-time buyers driving demand. India, in particular, is set to maintain its position as the largest market in the world due to the availability of feature-rich yet affordable devices from local vendors. As wearables continue to gain popularity and evolve, they are poised to become an integral part of everyday life, helping individuals lead healthier and more connected lives.