Global Shipments of Wearables Devices Saw Modest Growth in 2023 with Improved Demand Expected in 2024 and Beyond
March 20, 2024 | IDCEstimated reading time: 2 minutes
New data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker shows that the wearable devices market declined 0.9% year over year in the fourth quarter of 2023 (4Q23). Despite improved economic conditions, mature markets such as United States, Western Europe, and Japan recorded declines in 4Q23 due to muted demand, tough comparisons against last year, and inventory hangover from prior quarters. However, shipments grew 1.7% in Asia/Pacific and in China largely due to strong interest in emerging markets.
"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," said Ramon T. Llamas, research director with IDC's Wearables team. "2024 will be the start of the rebound as users will look for replacements and new models from key vendors launch during the second half of this year. This will carry into 2025 and beyond."
While the market declined slightly in 4Q23, global shipments of wearable devices managed to grow 1.7% for the full year 2023. Among the various device types, hearables declined 0.8% year over year for the full year while capturing 61.3% of the overall wearables market. The slow pace of innovation and fast pace of adoption has quickly led to the category relying more on replacements rather than new buyers. Meanwhile, smartwatches continued their growth trajectory as shipments increased 8.7% during the year as India and China led the market both in terms of vendors and consumption. Rings, such as those from Oura and Ultrahuman, showed promise with the category growing 34.9% during the year while glasses without a display grew 128.2% due to the launch of new products from Amazon and Meta.
"Rings have caught the attention of consumers as new brands begin to gear up their launch plans," said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC. "By providing a discreet form factor and multi-day battery life, rings avoid some of the key shortcomings of smartwatches and hence appeal to a broader audience. However, the form factor has long relied on a subscription-based business model, which is expected to subside in the short term as competition heats up."
With the global economy on a path to recovery, wearables are poised for additional growth in 2024 as device shipments are forecast reach 559.7 million units, up 10.5% over 2023. From there, IDC expects the market will grow to 645.7 million units by the end of 2028 with a compound annual growth rate (CAGR) of 3.6%.
Suggested Items
America Projected to Triple Semiconductor Manufacturing Capacity by 2032, the Largest Rate of Growth in the World
05/08/2024 | SIAThe Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032.
Real Time with… IPC APEX EXPO 2024: The Driving World of e-Mobility with Indium
05/08/2024 | Real Time with...IPC APEX EXPOIn the competitive EV market, technology plays a crucial role facing the challenges of infrastructure. As Brian O'Leary explains, Indium's e-Mobility product suite includes proven solder and thermal management products for high reliability.
Incap Releases Unaudited Business Review for January–March 2024
05/08/2024 | IncapRevenue for the first quarter 2024 amounted to EUR 51.4 million (1–3/2023: EUR 72.2 million). Year-on-year the revenue decreased 29.3%, as expected.
Schweizer Electronic: Business Development in Q1 2024
05/08/2024 | Schweizer Electronic AGThe sales of the SCHWEIZER Group amounted to EUR 39.2 million in the first quarter of 2024 (Q1 2023: EUR 37.1 million). This corresponds to an increase of +5.5 percent compared to the same quarter of the previous year.
Key Tronic Announces Results for Q3 of Fiscal Year 2024
05/08/2024 | Globe NewswireFor the third quarter of fiscal year 2024, Key Tronic reported total revenue of $140.5 million, compared to $164.6 million in the same period of fiscal year 2023.