TWS drives 2020 growth, smartwatches to hit 100 mn mark in 2021

The wearables market is divided into five distinct segments, of which earwear and wristwear comprise the majority of devices.

New Delhi: The annual true wireless stereo (TWS) shipments were expected to grow 83 per cent to 238 million units in 2020, according to a new report, adding that smartwatches will weather the subdued overall wearables market spending to increase 2 per cent to tip the 100-million mark in 2021.

The wearables market is divided into five distinct segments, of which earwear and wristwear comprise the majority of devices.

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In terms of smartwatches, demand was expected to wane in 2020 but should pick up this year, according to CounterPoint Research’s senior analyst Sujeong Lim.

“The normalisation of economies coupled with increased interest in health and fitness will help the smartwatch market grow. We expect low double-digit growth through the medium term — possibly higher if average selling prices decline quickly,” Lim said in a statement.

Based on the latest figures, premium products continued to lead, with Apple products comprising 29 per cent and 28 per cent of TWS and smartwatch shipments, respectively, in Q3 2020.

Lim observed that “Apple’s powerful iOS ecosystem, typically comprised of consumers with larger disposable incomes, has been the main driver for growth — especially in terms of revenues. High-end stalwart Samsung has also performed consistently.”

“In Q3 2020, half of the top 10 were budget brands with sub-$50 and even sub-$20 offerings, Xiaomi best illustrated the trend as it consolidated its number two spot”.

Realme was another notable budget brand to place in the TWS top-10 during the third quarter.

“Building on strong hearables momentum, recent entry into smartwatches and strength in online, realme could repeat its smartphone success to become 2021’s dark horse in wearables.” commented senior analyst Liz Lee.

“The trend around removing jacks and earphones from devices and boxes is becoming a big driver for TWS segment growth.

“It also helps that mobile media consumption continues to grow, making TWS the next must-have accessory,” Lee mentioned.