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
Avnet to Exhibit at the 2024 Embedded Vision Summit
05/14/2024 | AvnetAvnet’s exhibit plans for the 2024 Embedded Vision Summit include new development kits supporting AI applications.
Kitron: Completed Share Buyback in Connection with Remuneration to the Board Members
05/14/2024 | KitronKitron ASA has completed share buyback in connection with remuneration to the board members. Reference is made to the stock exchange release by Kitron ASA published on 13. May 2024 regarding initiation of a share buyback program.
Real Time with… IPC APEX EXPO 2024: Digitization and Regular Updates of the iNEMI Industry Roadmap
05/14/2024 | Real Time with...IPC APEX EXPORanjan Chatterjee is a board member at iNEMI. In this conversation with Editor Nolan Johnson, Chatterjee discusses the digitization of, and regular updates to, the industry roadmap. The roadmap is a collaborative effort on technologies and standards which is intended to guide CEOs and CTOs in their long-range planning. Ranjan discusses the board's role in shaping the roadmap and the vision for more frequent updates.
AT&S Adjusts Forecast, Not Considering a Capital Increase, Will Obtain Binding Offers for the Sale of Ansan
05/14/2024 | AT&SAT&S adjusts forecast for the financial year 2026/27, is currently not considering a capital increase, intends to obtain binding offers for the sale of the plant in Ansan, Korea, and proposes not to distribute a dividend for the financial year 2023/24.
KYZEN to Showcase Advanced Packaging Solutions at PCIM Europe 2024
05/14/2024 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, is excited to announce its participation in PCIM Europe 2024, scheduled to take place June 11-13, 2024 in Nuremberg, Germany.