Global wearable device shipments are expected to grow 6.1% year-on-year in 2024, reaching 537.9 million units according to new data from IDC’s Worldwide Quarterly Wearable Device Tracker cited by SEPE. An improving global economy combined with a renewal cycle in mature markets and continued adoption in emerging regions will help drive sales volume, analysts note.

However, growth will be uneven across product categories. According to analysts, wearable audio products (Hearables), which represent over 60% of the wearables market, are expected to see further expansion among emerging markets, while a new cycle of renewal should be expected in mature markets as consumers are trying to replace pandemic-era markets.

IDC predicts that growth for wearables will continue, but it will be uneven across different product categories

“In Q2, handsets continued to experience downward pressure on average selling prices (ASP), especially in the wireless headphone segment. This decline is due to increased competition and consumer demand for more affordable options. However, with new product launches expected later this year, we anticipate a boost in sales growth as consumers replace older models and upgrade to newer technologies.” says the IDC analysis.

Looking ahead, analysts expect the price landscape to stabilize as the replacement cycle slows and vendors adjust their strategies to balance affordability with innovation.

The smartwatches

Meanwhile, smartwatches are expected to experience their first year-on-year decline (-3%) in 2024, before leading to 4.8% growth in 2025. “Despite the decline, it is not time to sound the alarm as the decline is largely driven by India, which has been a global leader in low-cost smartwatches for the past few years,” comments the same analysis.

Excluding India, the global smartwatch market is projected to grow by 9.9%. Meanwhile, the average selling price for smartwatches is expected to increase by 5.7% in 2024. “As the pricing of smartwatches continues to rise, sellers will face the difficult challenge of justifying the increases. Minimal design changes, such as larger screens or changing materials, are not enough. To really accelerate growth, vendors should focus on integrating additional sensors while providing personalized advice to improve an individual’s health. Many of the new features will require the use of artificial intelligence.”IDC adds.