The International Data Corporation (IDC) has revealed the wearables devices market has declined 0.9% year over year during the fourth quarter of 2023.
Despite the economic conditions, markets in the US, Western Europe, and Japan saw declines for this period due to muted demand.
However, global shipments grew 1.7%, for markets in Asia/Pacific, and China, due to strong interest.
Research Director with IDC’s Wearables Team, Ramon T. Llamas said, “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.”
“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.”
The market did decline slightly in Q4 2023, however global shipments grew 1.7% for the full 2023 year. Hearables declined 0.8% year over year, capturing 61.3% of the overall wearables market.
A slow innovation pace, and fast adoption pace, resulted in the category relying on replacements over new buyers.
Smartwatches continued growing, with shipments increasing 8.7%, India and China leading the market in vendors and consumption.
Rings, including Oura and Ultrahuman, increased 34.9%, while glasses without a display rose 128.2% due to new products from Amazon and Meta.
Research Manager of Mobility and Consumer Device Trackers at IDC, Jitesh Ubrani said, “Rings have caught the attention of consumers as new brands begin to gear up their launch plans. 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.”
Additionally, wearables are tipped to continue growing in 2024, which device shipments expected to reach 559.7 million units, up 10.5% over 2023.
After that, the IDC expects the market will grow to 645.7 million units by the end of 2028, with a compound annual growth rate of 3.6%.