wearables

The wearables market began 2024 with a growth spurt as global shipments of wearable devices grew 8.8% year over year in the first quarter (1Q24) to 113.1 million units, according to new data from IDC.

The high-water mark for wearables came in 2020 and 2021 with volumes reaching record levels. The next two years saw the aftermath of that success as demand began to wane and shipments steadily declined.

Worldwide shipments of wearable devices grew 2.6% year over year during the third quarter of 2023 (3Q23) and reached an all-time high for the third quarter of 148.4 million units.

This growth came at the expense of overall market value as average selling prices (ASPs) fell due to increased competition and discounting by retailers seeking to reduce excess inventory.

Smartwatches, the only category that maintained positive growth, grew 23.3% during 2022, reaching 80 million units. Apple surpassed Huawei to become the market leader.

Smartwatches, however, grew 9.4% in 2022, reaching an all-time high of 148.6 million units with Apple in the lead.

Despite an economic slowdown, Huawei took the top spot with its wristbands accounting for 66.0% of its overall wearable shipments.

The decline is largely attributable to cooling demand as consumers begin to spend more in categories outside of wearables following years of precipitous growth that were further amplified during the pandemic.

The worldwide wearables market hit a new record high in the fourth quarter of 2021 as shipments reached 171 million units, up 10.8% from the same quarter last year.

According to a recent study from analyst firm ABI Research, the number of wearables shipped worldwide in 2020 increased to 259.63 million, with sports, fitness, and wellness trackers accounting for 112.15 million and smartwatches 74.30 million.