IDC: China's wrist-worn device shipments account for 32% of the global market and remain the largest market with growth potential in 2025.

The latest Quarterly Wearable Device Market Tracking Report released by IDC shows that the global wrist-worn device market will ship 190 million units in 2024, a slight decrease of 1.4% compared to the previous year. Factors such as economic instability, market saturation, and limited product innovation have affected the sales of adult smartwatches in the US and Indian markets, leading to a slight decline in global shipments. China's wrist-worn device market shipped 61.16 million units, a year-on-year growth of 19.3%, making China the largest wrist-worn device market in the world in 2024, accounting for 32.0% of global shipments. As the largest wrist-worn device market in the world, the Chinese market still has growth potential in 2025. The wrist-worn device market includes smartwatches and wristbands. In 2024, the global smartwatch market shipped 150 million units, a decrease of 4.5% compared to the previous year, while the Chinese smartwatch market shipped 43.17 million units, an 18.8% year-on-year increase. The wristband market shipped 37.29 million units globally in 2024, a 14.2% increase from the previous year, while the Chinese wristband market shipped 17.99 million units, a 20.2% increase. Performance of the global wrist-worn market in 2024: Apple Apple (AAPL.US) remains competitive in the global wrist-worn market with only one product line of smartwatches and ranked first in global shipments in 2024. In addition to important markets such as North America, Western Europe, and China, Apple has been expanding its market presence in the Asia-Pacific, Middle East, Africa, and other developing regions. Huawei Huawei has shown strong development potential in the global wrist-worn market. In 2024, Huawei ranked first in shipments in the global wrist-worn market below $700 (excluding taxes). It has a complete product range including Band, FIT, GT, WATCH, Ultimate, and WATCH D blood pressure series, covering a wide range of market segments from daily exercise and health to professional sports, smart experience on the wrist, and health care fields. In addition, its overseas markets have achieved significant growth in regions such as Asia-Pacific, Middle East, Africa, and Latin America. In the Chinese wrist-worn market, Huawei has been the top shipper for five consecutive years. Xiaomi Xiaomi (01810) made significant progress in its wrist-worn product line in 2024. The Xiaomi Mi Band 9 showed impressive performance in the second half of the year and as the largest shipper in the global and Chinese wristband market, Xiaomi's development laid an important foundation for the growth of global and Chinese entry-level wrist-worn device market. In addition, Xiaomi's smartwatch line also achieved significant growth with the development of the group's brand's high-end strategy, especially with better market feedback on the S series compared to the previous generation. Samsung Samsung's growth in 2024 mainly came from the wristband product line, especially in developing regions, where it found a more refined market positioning between entry-level wristbands and entry-level smartwatches. However, its smartwatch business still faces tough competition from other leading manufacturers worldwide. BBK BBK's children's watch products still maintain a leading position in the Chinese market and further strengthen their advantages through application software ecology, channel differentiation, and product line refinement. BBK is gradually expanding its layout in overseas markets and making more localized adaptations for local children's watch markets. Performance of the Chinese wrist-worn market in 2024: As the largest wrist-worn device market in the world, the Chinese market still has growth potential in 2025, especially with the impact of the "National Subsidy" policy on the Chinese wrist-worn market mainly in the following areas: 1. The "National Subsidy" policy stimulates broader market demand Under the promotion of the "National Subsidy" policy, the sales of smartwatches and wristbands have significantly increased. IDC data shows that in January 2025, the sales of wrist-worn devices in China increased by 41.0% year-on-year, with smartwatches and wristbands increasing by 33.7% and 68.0% respectively. With the continuous effect of subsequent subsidy policies and the stacking of platform and store incentives, the cost-effectiveness of wrist-worn products will be further enhanced, stimulating broader consumer demand, including for replacement and new purchases. 2. The market is concentrating on the thousand yuan and 1000-2000 yuan segments, while the 2000-3000 yuan segment is significantly driven by the "National Subsidy" The rapid penetration of the adult smartwatch market in the past year is largely due to the enrichment of products in the thousand yuan and 1000-2000 yuan segments, including refined price differentiation, diverse brand selections, and appearance choices. This concentration trend will become more pronounced under the influence of the "National Subsidy policy. IDC data shows that in January 2025, the adult smartwatch segment in China saw the fastest growth in sales in the 500-1000 yuan, 1000-1500 yuan, and 1500-2000 yuan segments, with year-on-year growth rates of 83.1%, 112.3%, and 77.0% respectively. In addition, the 2000-3000 yuan segment also saw significant growth driven by the 500 yuan cap of the "National Subsidy". 3. Offline channels provide more growth momentum Previously, e-commerce channels significantly increased sales due to various platform subsidies, causing noticeable impact on offline channels and resulting in weak sales performance over the past year. While e-commerce channels are still active, the introduction of the "National Subsidy policy in 2025 has intensified the promotional activities of offline channels, enhancing the attractiveness of offline channel purchases and driving significant growth in offline channel sales. In January 2025, sales of adult smartwatches in offline channels increased by 12.8% year-on-year. Pan Xuefei, research director of IDC China, believes that under the influence of the "National Subsidy policy, 2025 presents favorable opportunities for manufacturers to target the high-end market for smartwatches. On one hand, they need to maintain their presence in the thousand yuan and 1000-2000 yuan segments by strengthening the cost-effectiveness of their products and channel capabilities, while also considering the impact of the "National Subsidy policy on pricing and the potential internal effects of subsequent generations of products. Additionally, developing products above 2000 yuan, with subsidies, will make mid-to-high range products more attractive. However, achieving brand upscale remains a long-term strategic goal for all manufacturers.