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India's wearable device market registered 34 per cent growth in 2023 to a record 134.2 million units, a new report said on Friday.

According to the International Data Corporation (IDC), the fourth quarter (Q4) of 2023 (October-December) saw 28.4 million units, growing 12.7 per cent (year-over-year).

Smartwatch shipments increased by 73.7 per cent (year-over-year), totalling 53.4 million. Within wearables, its share increased to 39.8 from 30.7 per cent in 2022.

Festive season sales and heavy discounts led to a 38.7 per cent drop in ASPs (average selling price) from $42.5 to $26.1. The share of advanced smartwatches shrank from 4.5 to 2.1 per cent to 1.1 million units.

"Affordability, low product penetration and a plethora of options led to a surge in demand for smartwatches. However, the growing popularity of non-branded watches is impacting the incumbents, offering cheap alternatives of popular models, and are even bundled with multiple watch straps," said Anand Priya Singh, Market Analyst, Wearable Devices, IDC India.

All three major manufacturers, boAt, Noise and Fire-Boltt, were able to secure their respective places in the overall wearable market through diverse product portfolios and continuous innovation, but at lower ASPs, the report said.

The earwear category registered a modest 16.9 per cent (year-over-year), growth, reaching 80.4 million units.

As per Counterpoint Research, India's TWS (True Wireless Stereo earbuds) market shipments registered 34 per cent (year-over-year) growth last year, with boAt continuing to lead the market. boAt led the market with 39 per cent (year-over-over) growth. The brand also expanded its portfolio to the less than Rs 1,000 segment.

According to analysts, the growth was fueled by the increasing adoption of TWS devices due to their ease of use and availability of a diverse range of alternatives at an affordable price.

"The shipments of ANC-based TWS devices recorded 76 per cent growth in 2023, with this feature now becoming available in entry-level price bands as well," said Senior Research Analyst Anshika Jain.

Meanwhile, IDC estimated a single-digit growth for wearables in 2024.

"In 2024, we will see a proliferation of smartwatches with LTE SIM/eSIM connectivity, advanced health sensors and multiple GPS navigation. In earwear, premium features like Active Noise Cancellation, and multi-device pairing will be available at affordable pricing," said Vikas Sharma, Senior Market Analyst, Wearable Devices, IDC India