Wearable market in trouble, inflation and recession weigh. And in 2023?

The wearable market is in suffering, inflation, a strong dollar and fears of a global economic recession weigh on. The data reported by IDC relating to second quarter 2022 they clash with the past – think of the + 5.6% of a year ago relative to shipments of wrist wearables, driven by the very strong growth recorded during the pandemic peak. In one year the social, economic and geopolitical conditions have changed, and the trend is now reversed.

-6.9% is the overall decline that takes into account in this case all wearables, therefore, smartwatches, smart bands, headphones, earphones and other wearable devices. Therefore the analysis also includes the so-called earweara segment that has always achieved good results in recent quarters (especially with regard to TWS earphones).

107.4 million units shipped worldwide, with Apple, Samsung, Xiaomi, Huawei and Image Marketing which maintain the top five positions. The contraction in demand and the general increase in prices only make the future even more uncertain: they are expected for 2022 535.5 million units shippeda value similar to that recorded the previous year.

However, a (slow) turnaround is expected in the 2023 with the resumption of shipments of some types of wearables (smartwatches and headphones / earphones), either for a reinvigorated demand in emerging countries, or for the exhaustion of the life cycle of some products currently on the market. However, this reversal will be slow, because as IDC’s Raomon T. Llamas explains

the number of new users purchasing wearables is starting to decline.