A recent global analysis of the wearable band market by Canalys predicts an increase of 2% in 2023, resulting in a total of 186 million units. The primary driver of this growth is a significant 22% increase in the number of basic watch shipments in developing markets, particularly in India. This surge efficiently offsets a 9% decline in smartwatch sales and a 10% decrease in basic band shipments.

Looking to the future, Canalys expects a more notable uplift in the wearable band market, with a predicted growth of 10% in 2024. This positive trend is supported by an envisaged return of interest in smartwatches worldwide, with projections anticipating their shipments to rise by 17%.

Canalys Research Analyst Jack Leathem states that 'Basic watches have become the standout trend of 2023, with the category predicted to constitute over 40% of wearable band shipments for this year.

Leathem continues to explain that the success of basic watches is due to a blend of affordability, attractive product designs and subsequently high demand in emerging markets. Keeping in mind functionality and style, these devices are a cost-effective alternative to more costly smartwatches, thus leading to a decrease in popularity for less functional basic bands.

Canalys further predicts that this shift away from basic bands will remain, with their shipments expected to decrease to 12% by 2027. This shift is attributable primarily to market leaders such as Xiaomi and Google focusing more on higher markup wristwatch formats.

However, Leathem suggests that the smartwatch sector will revert to rising sales in 2024, predicting a delivery volume of 83 million units. Initially seduced by basic or cost-effective smartwatches, users are now looking for smartwatches with enhanced functionality. With this in mind, manufacturers are promoting advanced smartwatches with anticipated hardware improvements, from improved battery longevity to the potential emergence of micro-LED screens, in premium devices.

Cynthial Chen, Canalys Research Manager, notes that the global shift toward advanced smartwatches will be most evident in developing regions, with the Middle East and Central and Eastern Europe anticipating 27% and 22% respective growth in smartwatch shipments in 2024.