The global wrist-worn smart device market, which includes smart bands, sports wearables, basic smartwatches and advanced smartwatches, has grown modestly by 3% in Q3 2024 over the same quarter last year, with 52.9 million units shipped. Although this is a slight growth, the market remains complex, with growth and challenges interwoven across product categories and regions, especially within the sports wearable segment, where sports technology and sports science are playing a bigger role.
Sports Wearables Bands Lead The Charge
In the key growth drivers, smart bands were the biggest positive contributor to growth, up 7% to 10.4 million units, the first quarter of growth since Q3 2020 for smart bands after several quarters of decline. Canalys analysts said much of this growth was due to demand in emerging markets, where improved hardware of affordable smart bands meant they were being bought by first-time buyers. Mass models such as Xiaomi Smart Band 9 and Samsung Galaxy Fit3 are popular in the region. The new generation of smart devices also reached the burgeoning market for sports wearables with fitness and sports science-focused features, thus becoming even more appealing to a wider audience.
Xiaomi Surge In Market Share
Xiaomi has become one of the main challengers to Apple with shipments as high as 8.5 million in Q3 2024, showing a market share of 16.1% per shipment. The success goes hand in hand with Xiaomi’s popular Smart Band 9, which also had its shipments grow by 70% year over year. As the market for sports wearables grows, Xiaomi is also improving its sports technology, offering features such as heart rate monitoring, activity tracking, and advanced sports science capabilities, appealing to fitness enthusiasts and athletes alike.
Challenges Faced By Xiaomi To Become Profitable
Units at Xiaomi are increasing, but returns are financially different. The Chinese technology firm accounted for just 4% of the shipment value, while Apple tallied 40%, accounting for the majority of market value at $10.9 billion – that’s a 5.6% increase from the previous year. This disparity will partly be due to the fact that Xiaomi is moving even more towards the low-end product line with its ASP declining by 9% and now reaching its lowest level since Q1 2021. The sports wearable segment continues to be a significant challenge for Xiaomi as it strives to find a balance between affordability and advanced sports technology and sports science features that appeal to casual users as well as athletes.
It must, therefore present some new challenges to its currently led advanced smartwatch segment-especially the mature markets such as North America. Even a dominant player like Apple is today witnessing decline in demand on certain higher-end and older models with its prime position in smartwatch’s premium market remained un-threatened but upgrading reasons now seem to take many fewer options as manufacturers don’t provide enough compelling ones, sometimes. Sports wearables, driven by sports technology, are enabling Apple to retain market leadership through fitness tracking, integration of sports science, and performance enhancements. Fitbit, also a leader in its own smartwatch category, remains sliding down because consumers don’t see much hope to upgrade to the next generation except when some revolutionary functionality of sports wearables and sports science pops up.
Trends In Sports Wearable Market
Recent growth in the sports wearable market can be said to be driven more by the shift towards cheap and affordable entry-level smart bands, particularly in emerging markets, although the premium smartwatch is growing slowly and with competition. The sports wearable category is gaining traction as more people seek devices tailored for fitness, activity, and sports science. This maturing phase has thrown significant challenges to all existing global leaders like Apple who have to innovate further into sports technology offerings, as well as to emergent challengers like Xiaomi in this shifting landscape of sports wearables.
What sports wearable trends are you expected to see in the coming year?
The Sportz Planet Desk,
Atharva Shetye
