Budget smart bands lead to 3% wearable market growth in Q3 2024

According to market analyst firm, Canalys, the global wearable band market that is categorized as basic bands, basic watches, and smartwatches grew by 3% year-on-year in Q3 2024 to 52.9 million units.

Xiaomi and Apple tie for the top spot in the wearable band market

Canalys research reveals Xiaomi and Apple continued to hold positions as the top two brands in the global wearable band market. Xiaomi achieved its best quarter since late 2020, thanks to strong demand for the Mi Band 9 and Redmi Watch 5 series. To date, the company has extended its lineup to capture a wider audience: There are Pro, NFC, and Active versions of the bands, while Lite and Active versions are available for watches.

Xiaomi’s focus on entry-level products led to a 9% year-on-year decline in its average selling price. However, the company is also making progress in the premium segment. Its Watch S series for example grew 70% year-on-year.

Apple faced challenges as demand for its older smartwatches slowed down, which impacted growth in North America, one of its key markets.

Basic bands and watches saw growth, while smartwatches remained steady

The research reveals that basic bands grew by 7% (compared to Q3 2023 with 10.4 million units shipped) after successful launches like the Xiaomi Mi Band 9 and Samsung Galaxy Fit3. Basic watches, which have fewer features compared to smartwatches, grew by 3% to 23.9 million units. However, the demand for these devices has already started slowing down in India.

Smartwatch shipments increased slightly by 0.1%, reaching 18.5 million. But despite that, smartwatches are the most valuable segment with 35% of shipments but 74% of the market.

Why are some regions doing better than others?

“Regional disparities define the wearable band market, with emerging markets showing strong growth potential while North America struggles,” said Cynthia Chen, Research Manager at Canalys.

There is a big difference between emerging and mature markets. Emerging regions like Latin America and EMEA are driving growth because of affordable devices like Xiaomi’s Mi Band series and Samsung’s Galaxy Fit3. North America is still struggling with declining demand as users in mature markets see no need to upgrade to new models.

What’s next for the wearable band market?

Canalys says Companies have to innovate to stay competitive. Consumers are getting used to AMOLED displays and advanced health features even in budget devices, so their expectations rise. It puts pressure on vendors to deliver more at lower prices.

Smartwatches will be the main source leading companies to premium brands and ecosystems for users. Further hardware and software enhancements, such as enhancements in sleep tracking and machine learning, will shape the future of this market.