The global wrist wearable band market which includes basic bands, basic watches and smartwatches grew 3 per cent year-on-year in Q3 2024 to 52.9 million units.

The data released by research firm Canalys shows that the basic band segment returned to growth for the first time since Q3 2020, growing 7 per cent compared to Q3 2023 with 10.4 million units shipped. Its growth was driven by recent product launches from Xiaomi with the Mi Band 9 and Samsung with the Galaxy Fit3.

The basic watch segment meanwhile has begun to plateau amid slowing demand in some major countries such as India. The segment grew only 3 per cent year-on-year to 23.9 million units.

Smartwatch shipments grew just 0.1% to 18.5 million, as Huawei’s and Samsung’s growth offset Apple’s decline in this category.

 

Canalys research showed that Xiaomi and Apple held dominant positions in the global wearable band market.

Xiaomi achieved its highest wearable band shipment since Q4 2020, driven by strong demand for the Mi Band 9 and Redmi Watch 5 series.

As the volumes of Xiaomi’s shipments grow, it is also broadening the price segment at which it is operating, increasingly moving into the affordable segment.

 

“However, the emphasis on entry-level products led to a 9 per cent year-on-year decline in its ASP, hitting its lowest level since Q1 2021. Alongside this, Xiaomi’s efforts toward premiumization show progress, with the Watch S series achieving 70 per cent year-on-year shipment growth,” said Jack Leathem, Research Analyst at Canalys.

Apple meanwhile faced challenges as demand for its older smartwatches slowed down, which impacted growth in one of its key markets of North America.

But even with a drop in prices, consumers still expect AMOLED displays and advanced health features in their budget devices. This, inturn, is reducing profit margins and pressuring vendors to innovate even further.

 

“To stay competitive, vendors must continue investing in software and hardware that help put them at the front of the industry, for example through machine learning-driven insights, dual-processor architecture, and advanced sleep tracking,” said Leathem.

Canalys noted that smartwatches, accounting for only 35 per cent of shipments but 74 per cent of market value in Q3 2024 “remain critical for vendors’ premiumization ambitions and end-user ecosystem stickiness.”

Canalys’ research comes at a time when another research firm Futuresource Consulting showed that the wrist-worn wearables market is projected to have grown by 8.7 per cent in 2024, achieving 213 million shipments.

It too found that smartwatches and sports watches were the main growth drivers with their retail value expected to increase 11 per cent, generating revenues of nearly A$79.94 billion. According to Futuresource, smartwatch shipments worldwide are projected to reach 90 million units this year, an increase of 14 per cent.