Worldwide shipments of wearable devices are forecast to rebound in 2023, reaching a total of 504.1 million units by the end of the year.
Figures recently unveiled by analyst firm IDC show the market is on track for 2.4% year-over-year growth, driven by sustained demand for the most popular products – earwear and smartwatches – while other products hold steady.
It will herald a recovery for the market after it declined for the first time ever last year.
Looking ahead, IDC expects the market will see several years of single-digit growth with shipments reaching 629.4 million units in 2027 and resulting in a compound annual growth rate (CAGR) of 5.0%.
Smartwatches will experience market-beating growth as users transition from wristbands to smartwatches and, in some cases, from basic smartwatches to advanced smartwatches, IDC said.
Despite downward pressure from smartwatches, wristbands are not expected to disappear from the market as these devices will continue to appeal to users seeking simpler solutions.
Meanwhile, all other wearable categories – including clothing, rings, glasses that do not feature augmented or virtual reality, and others – will trend up and to the right albeit from a much smaller base.
“Despite the ongoing challenges in the macroeconomy, demand for wearables will push the market back into growth mode,” said Ramon Llamas, research director with IDC’s Wearables team.
“We still anticipate new devices to come out later this year and these will coincide with replacement purchases for those who acquired a new device several years ago. This sets up a virtuous cycle for future purchases in the coming years resulting in continued growth for the overall market.”
Jitesh Ubrani, research manager for IDC Mobility and Consumer Device Trackers, said that while replacements will be a big driver for mature markets such as North America and Europe, emerging markets are expected to drive continuous growth as well though many of these consumers are expected to be first time buyers.
“India has already surpassed the United States and China in terms of market size and will remain the largest market going forward thanks to the breadth of low-cost yet feature-rich devices from local vendors,” he said.
“Aside from India, other Asian countries along with Middle East and Africa will lead in terms of shipment growth while China and the USA will remain the second and third largest markets, respectively.”