India wearables market grows 53.3% in first half of CY2023: Report

Average selling price of smartwatches declines 44.9% as new launches increase, it says

India’s wearable market grew 53.3 per cent year-on-year, helped by "hundreds of" smartwatch model launches in the first half of calendar year 2023, said a report on Friday.

Companies made market shipments of 57.8 million units for wearables like smartwatches, earwear, and eyewear in the first half of CY 2023, said the 'India Monthly Wearable Device Tracker' of International Data Corporation. IDC expected growth to continue in the second half of the year due to festive offers and discounts.

Brands launched new smartwatches of different varieties in the first half of CY 2023, resulting in the devices recording 128.6 per cent sales YoY growth. The earwear category grew 27.3 per cent.

 

As many as 32.8 million wearables were shipped in the second quarter of 2023 to record a growth of 37.2 per cent YoY and 30.6 per cent quarter-on-quarter (QoQ).

“The first half of 2023 saw hundreds of smartwatch model launches with premium finishing, sporty appearances, rugged builds, and a variety of strap finishes like metal, silicon, leather, etc. The second half of 2023 will see aggressive festive offers and discounts, while brands remain cautious for supplies. Furthermore, we should expect more launches in the smart ring category at affordable pricing,” said Upasana Joshi, research manager, client devices, IDC India.

The average selling price (ASP) of smartwatches declined 44.9 per cent, dropping to $25.6 from $46.6 in 2Q23. The overall wearable ASP in the second quarter of 2023 dropped to $21.0 from $26.7 a year ago.

In the earwear category, sales of TWS (true wireless stereo) grew 52.9 per cent YoY and neckbands declined by -22.5 per cent in 2Q23. The ASP for neckbands and TWS stood at $15.0 and $18.7, declining 6.4 per cent and 15.3 per cent respectively.

“The high-end capabilities that have been exclusive to premium products are now gradually making their way into affordable models. These include features like advanced ANC (active noise cancellation), multiple microphones, minimal delay or low latency, simultaneous dual device connection, and advanced sound chipsets,” said Vikas Sharma, senior market analyst, wearable devices, IDC India.

Online channels were the main sales driver, with 73.9 per cent share in the second quarter of 2023. However, now leading brands are beginning to explore offline avenues to deepen their reach and expand their presence in Tier 3/4/5 towns, said IDC.

Home-grown brand boAt (Imagine Marketing) leads the wearable market in India with 26.6 per cent share and growing 6.5 per cent YoY. Earwear accounted for 77.7 per cent of its shipments in 2Q23. The company also continued to lead the TWS segment with 35.3 per cent share.

Noise (Nexxbase) stood second, growing 61.6 per cent YoY and with a 13.5 per cent market share. Noise regained its first position in the smartwatch market, with 27.6 per cent share and growing 93.2 per cent YoY.

Smartphone manufacturer OPPO (OPPO + OnePlus) stood third with 10.7 per cent share and growing 42.4 per cent YoY. The company is third in the TWS market, with 8.5 per cent share and growing 100.9 per cent YoY.

Fire–Boltt is in fourth place with 9.5 per cent share in the overall wearable category in the second quarter of 2023 and with 91.0 per cent growth YoY.