Smartwatch shipments plunge, smart glasses and rings rise: IDC

According to the International Data Corporation’s (IDC) India Monthly Wearable Device Tracker, India’s wearable device market experienced a year-on-year (YoY) decline of 6.3% in the first half of 2025 (1H25), with total shipments falling to 51.6 million units. This marks the market’s fifth consecutive quarterly decline, with shipments dropping 9.4% YoY to 26.7 million units in the second quarter (2Q25). The average selling price (ASP) for wearables increased marginally by 2.2% YoY to USD 19.2 in 2Q25, while remaining flat at USD 18.7 across 1H25.

The smartwatch segment continued its downward trend for the sixth consecutive quarter, with shipments falling 28.4% YoY to 6.6 million units in 2Q25. Its share within the overall wearables market also declined to 24.9%, compared to 31.5% a year earlier. Following explosive growth in 2022 and 2023, the smartwatch market is now consolidating, largely due to demand fatigue and saturation in the entry-level segment. Despite the decline in volumes, ASPs rose by 5.1% YoY, increasing from USD 20.6 to USD 21.7 in 2Q25. Advanced smartwatches were also affected, with shipments decreasing by 39.5% YoY and market share slipping from 2.5% to 2.1%.

In the earwear category, shipments declined slightly by 1.2% YoY to 19.9 million units in 2Q25, following two quarters of robust double-digit growth. The Truly Wireless Stereo (TWS) segment maintained its dominance with a 71.2% market share, though shipments dipped 1.2% YoY. Neckband-style earwear faced a steeper decline, with shipments dropping 16.1% YoY. Conversely, the over-the-ear segment recorded substantial growth, with shipments soaring by 97.4% YoY to 1.5 million units. The ASP for earwear rose modestly by 1.1% YoY, reaching USD 17.4.

In terms of vendor performance during 2Q25, boAt (Imagine Marketing) retained its leadership in the overall wearables category, expanding its market share from 26.7% to 28.0% YoY. In the TWS segment, boAt led with a 31.9% share, followed by Boult, which achieved significant growth to reach a 14.9% share. In the over-the-ear segment, boAt posted remarkable YoY growth of 198.4%, commanding a dominant 44.4% market share. In the smartwatch category, Noise (Nexxbase) remained the top vendor with a 30.9% share, while boAt moved up to second place with 13.7%. Among the top 10 smartwatch vendors, Xiaomi recorded the highest YoY growth, with a 145.5% increase in shipments.

From a channel perspective, online sales declined by 13.8% YoY in 2Q25, while the offline channel registered a more modest fall of 1.8%. As a result, the online share dropped from 63.4% to 60.3%. This trend was largely driven by the smartwatch category, where online shipments plummeted by 37.2% YoY. Online earwear shipments also saw a decline of 4.2% YoY. In contrast, offline earwear shipments grew 4.4% YoY, indicating resilience in that segment. Offline smartwatch shipments fell 14.8% YoY but fared better than their online counterparts.

Smartwatch market outlook: Mid-premium focus and white-label resurgence

The first half of 2025 saw fewer smartwatch launches than expected, primarily due to regulatory pressures to encourage local manufacturing and subdued consumer demand. IDC anticipates the smartwatch category to witness a strong double-digit decline for the full year.

Looking ahead to the festive season, brands are expected to shift focus towards mid-premium offerings that include advanced health sensors, NFC functionality, AI-powered predictive health insights, and deeper ecosystem integration. According to Anand Priya Singh, Market Analyst for Smart Wearable Devices at IDC India, white-label smartwatches—low-cost knockoffs, are also expected to gain traction again, particularly through offline retail, fuelled by aggressive bundle offers.

Beyond traditional segments, emerging wearable categories are beginning to resonate with consumers, thanks to innovative use cases and new product launches. Smart ring shipments rebounded in 2Q25 after a dip in the previous quarter, growing modestly by 2.8% YoY to 75,000 units. Brands such as Ultrahuman, Gabit, and Aabo collectively held a 65% market share. Smart glasses experienced a dramatic rise, with shipments jumping from 4,000 in 2Q24 to 50,000 in 2Q25, driven by new launches from Meta and Lenskart. With an ASP of $134.0, the segment retains its premium positioning. Smart wristbands also saw renewed interest, with shipments surging 118.5% YoY to 83,000 units, primarily fuelled by strong demand for Samsung’s Galaxy Fit3, which commanded an 80.6% share in the category.

These trends point to growing consumer interest in next-generation wearable form factors as the market matures and diversifies beyond smartwatches and earwear.

Earwear market outlook: Innovation-led differentiation

In an increasingly competitive landscape, brands are partnering with audio technology innovators to enhance sound quality and drive ASP growth. Upcoming models in the earwear segment are expected to feature AI-enabled capabilities, including personalised voice assistants, environment-aware sound tuning, and next-gen noise cancellation features.

Commenting on the future of earwear, Vikas Sharma, Senior Market Analyst at IDC India, stated that future devices will focus on seamless cross-device connectivity, allowing users to switch effortlessly between phones, laptops, and smartwatches. He also highlighted real-time translation across multiple Indian languages as an emerging differentiator. Despite ongoing innovation, IDC forecasts only low single-digit growth for the earwear category in 2025, as the market matures and competition intensifies.