DoNews reported on April 11 that according to Canalys, a third-party technology market analysis agency, the global wearable wristband device market will achieve a moderate growth of 1.4% in 2023, with shipments reaching 18.5 billion units. Emerging markets contributed particularly well, providing strong impetus for overall growth.
In addition, the diversified development of basic watches has also injected new vitality into the industry. However, excluding India's additional shipments of 15 million units dominated by basic watches, the decline in smartwatches and basic bracelets has led to an 8% decline in the global wearable wristband market in 2023.
The wearables market is diversified
Amid inflationary pressures and a complex post-pandemic economic environment, consumer spending in Europe and North America has shifted from discretionary items such as smart devices to services. This shift has had an impact on the smartwatch market, resulting in a significant decline in smartwatch shipments in North America and Western Europe. At the same time, manufacturers such as Apple, Samsung and Google are also facing problems such as lack of innovation and reduced competitiveness, which have caused their shipments to fall short of expectations.
In contrast, the basic watch market showed strong growth potential, becoming the only segment to see growth, with a year-on-year increase of 25%. Its growth is driven by a combination of factors. First of all, the Asia-Pacific region, especially India, has maintained a strong momentum, driving the adoption of basic watches. Basic watches are active in emerging markets due to their cost-effective product advantages, highlighting that wearable wristband devices still have great development potential.
Chinese manufacturers play an important role in driving the basic watch market. Xiaomi continues to innovate and expand its product portfolio, offering a wide range of product options across the globe, and its emphasis on incorporating GPS technology into products in the lower price segments and providing ecosystem connectivity for entry-level devices has strengthened its position in the market. At the same time, Huawei has strengthened its image as a high-end product based on its overall product base by improving the design and material quality to enhance the attractiveness of the basic watch.
In addition, manufacturers are actively pre-installing more apps on base watches, especially in the Chinese market, which further blurs the line between smart watches and base watches. These "smarter" base watches are not only feature-rich, but also affordable, meeting the daily needs of most consumers. These strategic moves have greatly enhanced the global competitiveness of Chinese manufacturers, propelling Xiaomi and Huawei into the top three in 2023, closely following Apple.
Chinese manufacturers are actively embracing Wear OS to seize the smart wearable market
More and more Chinese smartphone manufacturers are choosing to use the Wear OS platform, marking that 2024 will be a key year for Wear OS expansion. For example, Xiaomi and OnePlus entered the European market by launching Wear OS-powered smartwatches, offering consumers a cost-effective option while putting competitive pressure on Samsung and Google.
Chinese manufacturers hope to use the Wear OS platform to further cultivate the mid-to-high-end smartwatch market and provide a better development environment for the Android device ecosystem. However, in order to maintain momentum in the international market and in the smartwatch space, manufacturers must continue to upgrade and innovate in multiple aspects such as application scenarios, connectivity, health and sports tracking, and design. These efforts are critical to staying competitive in a rapidly changing market.
Innovation will lead to a new chapter in market recovery
Looking ahead, innovation will be the core driver of the revitalization of the wearable market. The boom in AI-driven, health monitoring, and outdoor devices will be the key factors leading the market growth and driving the wearable market to new heights.
Canalys is cautiously optimistic about the wearable wristband market in 2024, with growth expected to be 7%. In the short term, the overall market still faces a series of challenges, including the recovery of shipments and the promotion of global expansion, especially AI integration. Given that AI is still in the exploratory stage, it requires the cooperation of all parties and market testing. At this critical juncture, which is full of changes and opportunities, manufacturers must maintain strategic flexibility, actively seek innovative breakthroughs, and continuously accumulate practical experience to respond to new changes and new needs in the market.
In the short term, the basic watch market continues to show strong growth potential as manufacturers actively explore product positioning in multiple fields such as health monitoring, exercise tracking, and daily interaction, and enhance product value and profitability by optimizing design and materials. With the in-depth integration of advanced technologies such as AI and the increasing sophistication of health monitoring functions, smart watches will show better system performance and a wider range of application scenarios.
Canalys predicts that overall shipments of wearable wristband devices are expected to reach 217 million units by 2025, with smartwatches growing faster than other wearable wristband categories.