02 Jun 2020

Indian Wearables Market Grew 80.6% YoY in 1Q20, Fuelled by Expanding Earwear Category, Reports IDC India

NEW DELHI, 2nd June 2020 – The India wearables market registered 4.2 million unit shipments in 1Q20, clocking 80.6% year-over-year (YoY) growth, according to the recent data from the International Data Corporation’s (IDC) Worldwide Quarterly Wearable Device Tracker. This growth was driven by strong momentum in the earwear category, which grew by 289.2% YoY accounting for most of the category shipments in 1Q20. Truly Wireless Stereo (TWS) now contributes 23.1% to the overall earwear category growing 300.7% annually in 1Q20.

However, the quarter registered its first sequential decline after consecutively growing for the last eight quarters as the shipments declined 17.9% in 1Q20. Supply constraints from China, followed by the countrywide lockdown in mid-March led to this decline. The impact was largely seen on wrist bands as the category saw a 33.5% quarter over quarter (QoQ) decline in 1Q20.

“The earwear category is witnessing a major shift from wired to wireless devices. The lockdown which led to growing need of working from home and also, increased the entertainment consumption, has further accelerated the shift to wireless devices,” says Anisha Dumbre, Market Analyst, Client Devices, IDC India. “These devices not only help to reduce outside noise while users are taking virtual meetings but also help them to stay connected without any wires,” adds Dumbre.

Product Category Highlights

Wristbands witnessed a 28.0% YoY decline in 1Q20 as top brands faced challenges in procuring the supplies during the quarter. Despite supply constraints, Xiaomi maintained its lead with 41.9% market share, although it witnessed an annual dip of 39.3% from the same quarter last year. GOQii with its integrated preventive healthcare platform overtook Titan to reach the second position with a 13.6% share in 1Q20.

Watches observed a YoY growth of 43.3% in 1Q20 with a total of 209.4 thousand watches being shipped in the country. Huami’s Amazfit continues to maintain its lead in the watch segment with a 22.4% category share. Fossil stood second with 17.9% category share, very closely followed by Apple with a 17.7% share to hold the third position in this category. However, Apple still leads the smartwatch category which includes the watches which can run third-party applications on the device itself.

With 3 million earwear devices shipped in the first quarter of the year, the earwear category witnessed a triple-digit YoY growth in 1Q20. boAt led the segment with a 23.9% share, competing very closely with Samsung, that includes devices from Samsung, Infinity, and JBL, with a 23.6% share in this category. Samsung surpassed Apple in the Truly Wireless Stereo category with a 29.8% market share mainly because of its newly launched Galaxy Buds Plus, Apple finished second with 15.7% market share in this category.

India Wearables market, Product Categories, Market Share, Year-over-Year Growth 1Q20 (shipments in millions)

Product Category

1Q19 Shipments

1Q19 Market Share

1Q20 Shipments

1Q20 Market Share

Year-over-Year unit change (1Q20 vs 1Q19)

Earwear

0.8

32.8%

3.0

70.8%

289.2%

Wrist Band

1.4

60.9%

1.0

24.2%

-28.0%

Watch

0.1

6.3%

0.2

5.0%

43.3%

Total

2.3

100.0%

4.2

100.0%

80.6%

Source: IDC Worldwide Quarterly Wearable Device Tracker, May 2020

Summarizing the potential impact of COVID-19 on the overall wearables market in India, Jaipal Singh, Associate Research Manager, Client Devices, IDC India commented, “COVID-19 has slowed down the pace of growth for wearables in India. Now when people are working from home and having limited physical activity, the usage of watches and fitness bands in India has drastically come down. This is also impacting the need for a new device as many people prefer wearing a device when they go out or involve in physical activity.” He further adds, “This impact is expected to prevail for a few more quarters, however, we expect some resurgence in demand in the second half of the year and outlook remains positive for the year.”

Note:

For an ear-worn device to be considered a wearable by IDC's definition, it must offer functionality beyond audio, like a smart assistant, health and fitness tracking, audio experience enhancement, or language translation.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

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Coverage

Regions Covered

India


Topics Covered

Wearables