Canalys: Global wearable wristband shipments will grow 5% in 2024

According to the latest analysis by Canalys, shipments of the global wearable wristband market will grow by 5% to 194 million units in 2024. Despite a slight decline in the first quarter of 2024 (-0.2%), the market is expected to rebound sharply later this year, boosted by a 4% increase in smartwatches and a continued 10% growth in the basic watch market. However, the basic wristband market will shrink by 6% in 2024.

"Basic watches continue to grow in popularity around the world, reaching their highest ever share of the wearable wristband market at 48% in the first quarter, and are expected to reach 46% share for the full year," said Jack Leathem, an analyst at Canalys Research.

Xiaomi and Huawei released basic watches with increasingly powerful features to attract price-sensitive consumers. The two companies achieved 37% and 46% growth in the first quarter of 2024, respectively. As the user experience, tracking and smart features of basic watches have improved, more consumers are choosing these affordable models to meet most of their needs. The long battery life of ordinary watches is a major attraction for many users. However, this growth of basic watches is expected to be overshadowed by the long-term expansion of smartwatches, which will solve more complex use cases as battery life and cost competitiveness improve.

Smartwatch shipments fell 9% in the first quarter of 2024, but are expected to rebound this year with an estimated 4% growth, driven by upgraded devices in the second half of the year. "This growth trend reflects changing consumer expectations from basic data tracking to growing demand for detailed, personalized healthcare solutions," said Cynthia Chen, research manager at Canalys. "Companies such as Huawei, Zepp Health and Samsung are turning to software services that integrate advanced sensors, algorithms and artificial intelligence to provide comprehensive health insights. These innovations are designed to enhance the user experience and position wearable devices as an important tool for future health management, making a significant contribution to the expected growth in smartwatch shipments throughout the year."

Vendors in the wearables market must recognize the importance of bundling and trade-in deals. In recent years, consumer price sensitivity has driven the popularity of basic watches. Offering deep discounts on new-generation devices can make expensive flagship models more affordable and accessible, encouraging consumers to upgrade. This strategy, similar to bundling basic watches, can not only increase shipments, but also cultivate ecosystem loyalty and consumer retention.

At the same time, vendors should continue to look for innovative use cases and expand their model portfolios to include ultra-premium smartwatches and smart rings. Developing ultra-premium smartwatches can enhance brand image, create higher-margin products, and provide a platform for introducing premium features that can later be integrated into other flagship devices. Smart rings offer an opportunity to differentiate products in an increasingly homogenous market. By providing a premium extension to smartwatches, smart rings can further enhance the consumer experience.