Good news for secondary smartwatch market as global smartwatch market recovers after sharp dip

Global shipments of smartwatches fell by 9% in 2024, according to CCS Insight’s latest wearables market forecast. The downturn, to 163 million units, was largely driven by weaker upgrade cycles and consumer hesitation amid limited innovation. Markets like India saw the steepest fall, dropping 35%, while the US also experienced a decline. China was the exception, with strong growth from brands such as Xiaomi and Huawei.

Growth expected from 2025 onward

The outlook for 2025 is more optimistic. Shipments are projected to rise by 11% to 181 million units, surpassing pre-decline levels. CCS Insight expects a 5-year compound annual growth rate (CAGR) of 8% for smartwatches, driven by new features and growing adoption in underserved markets.

Prices increase as premium models launch

Despite fewer units shipped in 2024, smartwatch average selling prices rose by 9%, attributed to inflation, higher component costs and a shift towards premium models. This trend is expected to push the global market value past € 37.5 billion by 2029, at a CAGR of roughly 10%.

Replacement cycles shorten in key regions

In the UK, consumers now expect their smartwatches to last 3.7 years on average, down from 4.3 years the year before. This shortened lifecycle, combined with pandemic-era purchases nearing end of life, is expected to drive a wave of upgrades in 2025 and 2026.

Smart rings show high growth potential

Smart ring shipments doubled in 2024 to 1.7 million units, with projected growth at a staggering 51% CAGR through 2029. The category’s expansion has been led by Oura and Samsung, with several Indian and Chinese brands entering the market. Smart rings are not replacing smartwatches but are seen as complementary, particularly for current smartwatch users.

Why this matters for used devices

The secondary smartwatch market often lags behind the smartphone sector in volume and maturity. However, as the primary smartwatch market recovers, more used Apple Watch and other devices are expected to become available. Shorter first usage and growing adoption in new markets suggest an increase in potential trade-ins and refurbished inventory. The non-cannibalizing nature of smart rings is also good news for the resale of both new and used smartwatches.