Smartwatch Demand Pushes Wearables To Record Growth: The market for wearable bands just had a record-breaking quarter. According to Omdia, 50.2 million devices were shipped between April and June, a 13% jump compared to the same time last year. Three of the top four brands saw big boosts in shipments, helping push the industry to new highs.
Looking ahead, Omdia expects the wearable band market to grow by 8% in 2025, followed by an even stronger 9% increase the year after.
Health and Fitness Driving the Trend
“Interest in wearable bands is booming, driven by a growing consumer focus on health, fitness and sports,” said Jack Leathem, Analyst at Omdia. “This trend will continue to fuel growth, particularly as innovations enable expansion into medical and clinical markets. Smartwatches will be the key driver for the continued expansion, while we expect the uptake of basic watches to reach a large audience of first time-buyers,” he said.
The data suggests that shipments of basic watches will eventually level off, while smartwatches are set to accelerate. By the end of the decade, both categories are expected to hit over 100 million shipments per year.
Even though smartwatches don’t yet ship in the highest volumes, they account for the biggest chunk of revenue.
Smartwatches Hold Most of the Market’s Value
Last year, Omdia valued the wearable band market at $36.6 billion. This year, it’s expected to pass $40 billion for the first time. Smartwatches are the real moneymaker here, making up 69% of the market’s value despite representing only 32% of shipments.
Apple, one of the biggest names in smartwatches, actually slipped a little in Q2. Its shipments dropped slightly to 7.6 million, bringing its market share down to 15.2%. That makes Apple the only top-four vendor not to post big growth during the quarter.
Still, Apple plays at the premium end of the market, where its watches appeal to people who want strong connectivity and standalone features. Omdia also pointed out that Apple users may be more likely to upgrade frequently, which is key for keeping momentum.
“Finding effective ways to encourage consumers to upgrade as they replace older products will be critical for vendors,” said Omdia Research Manager, Cynthia Chen.
“Additionally, tapping into subscription revenues through value-added services, connectivity subscriptions and partnerships that leverage the almost 500-million-active user installed base will be high on vendors’ agendas,” she said.
Chinese Brands Lead the Way
The strongest growth last quarter came from Chinese powerhouses Xiaomi and Huawei. Xiaomi shipped 9.5 million devices, a huge 61% increase compared to last year, and took the top spot with an 18.9% market share. Huawei wasn’t far behind, with 8.8 million shipments and 47% growth, though it actually led the market in Q2 of last year.
Samsung landed in fourth place with 4.3 million shipments. Even though it trails the top three by a wide margin, its 52% growth rate was impressive, pushing its market share closer to double digits.
Noise, the only Indian brand named in Omdia’s report, shipped just 2 million devices, causing its market share to shrink. The “Others” category, which covers all the smaller players, is shrinking too – now at just under 36% of the market compared to over 44% last year. It’s clear the industry is consolidating around a few big names.
What’s Next for Wearables
With the biggest vendors strengthening their positions, the wearable band market is heading toward hundreds of millions of shipments per year in the near future. Smartwatches will likely lead the charge, both in value and growth, while basic watches continue to attract first-time buyers.
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