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Canalys, the renowned research group that provides insights on technology markets, has recently released its latest estimates on the wearable band market, and the results are not very promising.
According to their report, the wearable band market suffered a challenging fourth quarter (Q4) of 2022, with an 18% shipment decline to reach 50 million units. This marks the first double-digit decline for the market in a typically seasonally strong Q4 quarter.
The smartwatch category suffered a similar fate, with a double-digit decline of 17%. Basic bands experienced their ninth consecutive decline with a 43% drop, while basic watches grew only 3%, with the growth engine India slowing significantly. The report suggests that vendors across the board felt the impact of the challenging macroeconomic environment in Q4.
Apple, the leader of the smartwatch category and the overall wearable band market, also saw a decline of 17% on top of a tough comparison to its stronger quarter in 2021 as it returned to its regular launch schedule. Despite this, Apple saw its smartwatch sales grow 5% overall in 2022. It sold 41.4 million Apple Watches for 22.6% market share, compared to overall 2021 sales of 39.4 million and 20.4% market share.
Worldwide wearable band shipments and annual growth
| Vendor | Q4 2022 shipments (million) | Q4 2022 market share | Q4 2021 shipments (million) | Q4 2021 market share | Annual growth |
| Apple | 13.8 | 27.5% | 16.5 | 27.1% | -17% |
| 4.0 | 8.0% | 5.3 | 8.7% | -25% | |
| Xiaomi | 3.6 | 7.2% | 6.7 | 10.9% | -46% |
| Huawei | 3.2 | 6.4% | 5.5 | 9.1% | -42% |
| Samsung | 2.9 | 5.9% | 4.5 | 7.4% | -35% |
| Others | 22.5 | 44.9% | 22.5 | 36.8% | +0% |
| Total | 50.0 | 100.0% | 61.0 | 100.0% | -18% |
Source: Canalys Wearable band Analysis (sell-in), February 2023
Google, on the other hand, rose to second place despite a 25% decline due to waning Fitbit shipments. It was able to soften its decline with 16% smartwatch growth with the release of its Pixel Watch.
However, Xiaomi, Huawei, and Samsung all experienced significant declines. Samsung even fell to fifth place as its growth streak abruptly ended in Q4 with a 35% decline as the dividend from the WearOS migration dwindled, and it was further limited by the iterative update of the Galaxy Watch 5 series.
Despite declines in quarterly smartwatch shipments, Apple, Samsung, and Huawei maintained annual growth, contributing to the smartwatches’ mild growth in 2022. In 2022 overall, smartwatches grew 3%, basic watches rose 21%, and basic bands fell 39%, leading to the whole wearable band market declining by 5%.
Worldwide full-year 2022 wearable band shipments and annual growth
| Vendor | 2022 shipments (million) | 2022 market share | 2021 shipments (million) | 2021 market share | Annual growth |
| Apple | 41.4 | 22.6% | 39.4 | 20.4% | +5% |
| Xiaomi | 17.1 | 9.3% | 29.0 | 15.0% | -41% |
| Huawei | 15.2 | 8.3% | 19.2 | 9.9% | -21% |
| Samsung | 14.0 | 7.7% | 14.6 | 7.6% | -4% |
| 11.8 | 6.4% | 15.1 | 7.8% | -22% | |
| Others | 83.4 | 45.6% | 75.7 | 39.2% | +10% |
| Total | 182.8 | 100.0% | 193.0 | 100.0% | -5% |
Source: Canalys Wearable Band Analysis (sell-in), February 2023
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The Canalys report suggests that the wearable band market faces a challenging environment, and vendors must adopt new strategies to overcome the hurdles. This includes expanding their product portfolios, improving their distribution channels, and introducing innovative features to attract consumers.
It remains to be seen how the wearable band market will fare in the coming years, but one thing is for sure: vendors need to be nimble and agile to succeed in this rapidly evolving market.
