The global landscape of wearable technology experienced a notable boost, growing by 3% in the third quarter of 2024 compared to the previous year, according to esteemed market analyst firm Canalys. This expansion marks a significant milestone as shipments rose to an impressive 52.9 million units, underscoring a surge in demand for affordable, innovative wearable solutions that continue to captivate consumers worldwide.
At the forefront of this phenomenon are market titans Xiaomi and Apple, who have managed to maintain their stronghold as industry leaders. Xiaomi, in particular, is reveling in its most successful quarter since late 2020, significantly propelled by the Mi Band 9 and Redmi Watch 5 series. By diversifying its product range to include Pro, NFC, and Active versions of its bands, as well as Lite and Active variants for its watches, Xiaomi has adeptly broadened its appeal across various consumer segments. Despite witnessing a 9% decline in average selling price year-on-year due to its focus on entry-level products, Xiaomi’s foray into the premium segment is yielding impressive results, evidenced by a remarkable 70% growth in its Watch S series.
Conversely, Apple faces hurdles in North America, a key market, where a deceleration in demand for its older smartwatch models has impacted growth. This highlights the competitive dynamics and the relentless pace of innovation that brands must keep up with to sustain their market positions.
The market dynamics also reveal fascinating shifts in consumer preferences. Basic bands enjoyed a robust 7% growth, driven by successful launches such as Xiaomi’s Mi Band 9 and Samsung’s Galaxy Fit3. Meanwhile, basic watches saw a 3% increase, tallying up to 23.9 million units. However, the demand for these basic wearable devices has begun to taper in regions like India. On the other hand, smartwatches, which remain the most lucrative segment comprising 35% of shipments yet commanding 74% of the market value, saw a marginal increase of 0.1% to reach 18.5 million shipments.
The regional disparity within the wearable band market is striking. Emerging markets, notably in Latin America and the EMEA regions, are pivotal growth engines, spurred by cost-effective devices like the Xiaomi Mi Band series and Samsung’s Galaxy Fit3. In contrast, North America grapples with sluggish demand, as the appetite for new model upgrades dwindles in these mature markets.
Looking ahead, innovation remains quintessential for companies striving to maintain their competitive edges. As consumer expectations evolve—driven by the prevalence of AMOLED displays and advanced health-tracking features even in budget models—vendors face mounting pressure to deliver enhanced value at competitive prices. The smartwatch segment, in particular, harbors vast potential as companies aim to lure users into premium brands and integrated ecosystems. Future advancements in hardware and software, especially in sleep tracking and machine learning, are anticipated to further shape the trajectory of the wearable market, providing a window into the next wave of cutting-edge technological evolution.