The global wearable band market in the third quarter of 2024 is expected to grow year-on-year due to the launch of new products from companies such as Xiaomi and Samsung.

According to the latest research from Canalys, the global wearable band market is expected to reach 52.9 million units in the third quarter of 2024, growing 3% year-on-year.

Shipments across all device categories, including basic bands, basic watches and smartwatches, grew year over year.

In particular, the basic band segment returned to growth for the first time since Q3 2020, growing 7% to 10.4 million units shipped, driven by the launch of new products such as Xiaomi's Mi Band 9 and Samsung's Galaxy Fit3.

The basic watch segment saw growth slow down due to weaker demand in the Indian market, growing 3% year-on-year to 23.9 million units.

Smartwatch shipments rose slightly by 0.1% to 18.5 million units. This is the result of Huawei and Samsung's growth offsetting Apple's decline.

Xiaomi reported its highest wearable band shipments since Q4 2020, driven by strong demand for the Mi Band 9 and Redmi Watch 5 series.

Xiaomi has targeted a wider range of customers by offering a variety of options.

For example, the Redmi Watch 5 series comes in Pro, NFC, and Active versions of the band, as well as Lite and Active versions, and comes in a variety of colors and materials.

“This diverse product line has allowed Xiaomi to target multiple price points and expand its market share,” said Jack Leathem, research analyst at Canalys.

On the other hand, the focus on entry-level products led to a 9% year-over-year decline in average selling prices (ASPs), the lowest level since the first quarter of 2021.

Nonetheless, Xiaomi's premiumization efforts paid off, with the Watch S series growing 70% year-over-year.

Xiaomi has struggled to balance its reliance on affordable devices with its efforts to build a premium brand.

“While emerging markets show strong growth potential, North America is struggling,” said Cynthia Chen, research manager at Canalys.

Emerging markets offer a lot of opportunity for vendors to expand through affordable devices, as evidenced by Xiaomi’s Band series and Samsung’s Galaxy Fit3 driving growth in Latin America and EMEA.

On the other hand, the North American market is seeing declining demand due to decreased demand for Apple's older models and Fitbit's declining market share. In mature markets, growth is stagnant due to a lack of compelling features to drive upgrades.

“The introduction of AMOLED displays and advanced tracking features has revitalized the basic wearable band market,” Leathem said.

Entry-level products continue to expand, especially among first-time buyers in emerging markets who want advanced features at a lower price.

The popularization of these advanced technologies has raised consumer expectations, but it has also increased competition, reducing margins and pressuring vendors to continue to innovate.

Smartwatches will account for only 35% of shipments but 74% of market value in Q3 2024, remaining a key factor for vendors to maintain premiumization and user ecosystems.

To remain competitive, vendors must continue to invest in software and hardware, offering things like machine learning-based insights, dual-processor architectures, and advanced sleep tracking.

Having a consistent messaging and a product portfolio focused on premium segments will be critical for vendors to grow and establish business at higher price points.