The
global smartwatch market
is expected to grow in 2024. According to a report by Canalys, the global
smartwatch market
is set to surge by 17%. The report claims that
basic watches
were in more demand in 2023, but it is set to shift towards
smartwatches
in 2023. This shift will signify a growing demand for enhanced functionality among users. Especially for the users who started using smartwatches during the pandemic.
As per the report, basic watches were able to capture over 40% of the wearable band market in 2023.
This success was driven by affordable prices and stylish designs which were a perfect appeal for emerging markets. However, the report predicts that this trend is set to fade by 2027 when basic band shipments may shrink to just 12%. This decline is expected to be partly responsible for the shift of major players like
Xiaomi
and Fitbit towards higher-margin smartwatches.
How the smartwatch market may expand
The report claims that 83 million units are expected to be shipped in 2024. This will be driven by several factors which include users’ demand for advanced features in their watches. Apart from just timekeeping, users now want their watches to come with enhanced fitness and health features like blood pressure monitoring and sleep apnea detection (which is expected to debut in Apple's 10th-anniversary watch) are expected to become major drivers..
With the potential arrival of micro-LED screens, smartwatches (even the premium models) may offer better battery life. Emerging markets like the Middle East as well as Central & Eastern Europe are expected to see a smartwatch boom. The report predicts that the demand for smartwatches will rise by 27% and 22% in the respective regions.
Upcoming smartwatches are also set to be infused with the power of cloud-based services and generative AI. Zepp Health and Google's recent commitments in this area hint at exciting possibilities. With such features, smartwatches will be able to offer personalised fitness plans, customised recommendations as well as in-depth performance analysis. AI in smartwatches may also be able to interact with users like a human coach.
The AI integration into smartwatches may sound promising, but the report claims that brands should be cautious about data privacy concerns and the potential for "AI hallucinations" (inaccurate AI-generated content). Addressing these challenges responsibly will be important for fostering trust and maximising the benefits of AI in smartwatches.
The report also claims that the market is projected to continue its growth through 2025. By that time, smartwatches may claim a 44% market share, the report adds. Premium models are also likely to increase which may even boost the overall value of shipments.
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