The smartwatch market is expected to grow in 2024, according to Canalys

Global sales of wearable bands are expected to increase significantly by 10% by 2024. This encouraging trend is supported by the anticipated global upsurge in demand for smartwatches, which is expected to result in a 17% increase in shipments, according to research firm Canalys. This follows a 2% increase in 2023 to 186 million units, where growth was principally fueled by a notable 22% spike in shipments of basic watches in emerging markets, particularly India. A 9% decline in smartwatch sales and a 10% drop in shipments of basic bands are effectively offset by this increase.

"In 2023, basic watches became the most popular trend; this year, they are predicted to account for over 40% of wearable band shipments," says Canalys Research Analyst Jack Leathem. "An excellent combination of low prices, eye-catching product designs, and a resulting surge in demand in developing markets is responsible for the success of basic watches. As a cost-effective, temporary substitute for more costly smartwatches, these reasonably priced gadgets that combine fashion and technology are becoming less common than their more sophisticated counterparts.

As basic band market leaders like Xiaomi and Google (Fitbit) increasingly turn their attention to higher markup, wristwatch form factors, Canalys expects this shift away from basic bands to continue, with shipments predicted to drop to 12% by 2027.

With 83 million units expected to be shipped in 2024, the smartwatch market is primed for growth. "Users, particularly those who bought devices during the COVID-19 pandemic, are now seeking enhanced functionality," said Leathem. "Initially, they were drawn to basic or affordable smartwatches."

Globally, emerging regions will lead the way in the adoption of advanced smartwatches; in 2024, shipments of smartwatches are predicted to soar 27% and 22%, respectively, in the Middle East and Central and Eastern Europe. According to Cynthia Chen, Research Manager at Canalys, users in these areas are about to make the switch from traditional watches to smartwatches for the first time in the United States.

Canalys also predicts that cloud-based services, particularly generative AI, will become more popular in 2024 as a result of pledges made in 2023 by Google and Zepp Health. Growth prospects are indicated by smartwatch vendors' increasing adoption of compelling AI features. Even the industry is turning more and more toward providing more advanced AI-driven services, like tailored fitness regimens, personalized recommendations, and thorough performance analytics, all of which are fueled by AI that emulates human interaction.