Wearables market fell in 2022, says IDC

Wearables market fell in 2022, says IDC

Market news |
By Peter Clarke

Global shipments of wearable electronics fell in 2022 to 515.6 million units, the first year of decline since 2013, according to International Data Corporation.

The downturn was brought on by high-spending by consumers during the covid pandemic giving rise to strong previous growth. This was followed in 2022 by global economic pressures and a reduction in discretionary spending.

IDC expects improved economic conditions and rising demand from emerging geographic markets to drive growth of about 6 percent in 2023 to 539 million units.

The market leaders – Apple, Samsung, Huawei and Xiaomi – saw their market share was eroded by the growth of Indian consumption and Indian brands, IDC said. During 3Q22, three of the top 10 wearable device companies were from India, with Imagine Marketing leaping into second place behind Apple.

IDC said this phenomenon is aimed behind the premium brands in terms of price and is therefore likely to affect second-tier suppliers such as a Huawei and Xiaomi.

Top five wearables companies by market share in 3Q22. Source: IDC.

IDC forecasts the wearable electronics market as having a five-year compound annual growth rate of 5.1 percent taking unit shipments reach 628.3 million by the end of 2026. IDC expects smartwatches to grow with a 6.3 percent CAGR while hearables will experience a 5.1 percent CAGR over the same period.

“Although the market will contract in 2022, this is only temporary,” said Ramon Llamas research director for mobile devices at IDC, in a statement. “The market fundamentals are sound with healthy replacement rates, continued market penetration, and greater availability of more devices at different feature sets and price points in the years to come. But given the number of brands and devices, differentiation will become hard to come by.”

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