BENGALURU: As technology advances, the wearables market continues to evolve, presenting consumers with a plethora of options for health monitoring and connectivity.
Among these innovations, smart rings have emerged as a compelling alternative to smartwatches, prompting a discussion on their potential to encroach upon the market share traditionally held by their larger counterparts.
Smart rings, compact devices worn on the finger, offer various functionalities, including health tracking, notifications, and contactless payment capabilities. Their discreet design and ease of use appeal particularly to those who desire a more subtle wearable option.
Unlike smartwatches, which can be bulky and visually recognisable, smart rings provide a seamless integration into daily attire, catering to both style-conscious consumers and those who prefer minimalism in their technology.
Moreover, the health and wellness trend is gaining momentum. With an increased focus on fitness and personal well-being, smart rings offer biometric monitoring features, such as heart rate tracking, sleep analysis, and activity logging.
Streamlined form factor
These functions often rival those found in smartwatches while embodying a more streamlined form factor. As consumers become more health-conscious, the demand for unobtrusive tracking devices may sway preferences towards smart rings.
Historically, this niche has been dominated by companies like Oura and Ultrahuman, which specialise exclusively in smart ring technology. Samsung’s entry into this space with Galaxy Ring signals a potential transformation as larger brands begin to integrate smart rings into their broader ecosystems of devices.
The shift could elevate smart rings from a minor segment of the wearable market to a mainstream product category.
According to research firm International Data Corporation (IDC), global ring sales reached approximately 880,000 units in 2023, with Oura accounting for 80 per cent of sales and Ultrahuman capturing 12 per cent.
Projections indicate a dramatic increase in sales, expected to rise to 1.7 million units in 2024 and further to 3.2 million by 2028, representing a remarkable year-over-year growth rate of 29.5 per cent.
In contrast, the smartwatch market, which saw sales of around 161 million devices in 2023, is forecasted to grow at a more modest rate of 1.7 per cent annually.
A more comfortable alternative
The disparity underscores the relative maturation of the smartwatch market, characterised by elongated replacement cycles and incremental upgrades rather than groundbreaking innovations.
Frederick Stanbrell, Research Analyst at IDC Europe, said the initial reception of the Galaxy Ring suggests a positive consumer response towards its sleek and unobtrusive design, which presents significant advantages, particularly for applications like sleep tracking.
Many smartwatch users have expressed discomfort with wearing a watch to bed, whereas a ring is often perceived as a more comfortable alternative.
Moreover, Stanbrell said that with smaller wrists often find traditional smartwatches bulky, and the Galaxy Ring, along with other potential offerings in this category, may provide an attractive solution for this demographic.
Industry insiders indicate that Samsung’s foray into smart rings has garnered attention from other major players in the wearables market, who are now exploring the feasibility of launching their own smart ring products.
Should the Galaxy Ring achieve substantial market success, it is likely that competitors will follow suit, paralleling the trend experienced with the inaugural launch of Apple’s smartwatches.
Potential to flourish
However, Stanbrell said the emergence of smart rings poses a direct challenge to existing smartwatches, as they offer comparable features, including sleep and heart rate monitoring, activity tracking, and wellness assessments.
Samsung has emphasised the synergistic potential of using the Galaxy Ring in conjunction with its Galaxy watches, touting benefits such as enhanced battery life and shared health features. Nevertheless, consumers may find it economically unfeasible to invest in both devices, particularly given that the Galaxy Ring is priced at $400—the same as mid-range Galaxy watches.
Despite Oura’s Ring 4 being priced at $349 plus a monthly subscription fee of $5.99, Samsung’s announcement thus far lacks any indication of a compulsory subscription model for the Galaxy Ring.
The strategic positioning could attract customers who prefer a straightforward purchase without recurring costs. Ultimately, the trajectory of smart rings in the wearables market appears promising, with the potential to convert consumers who may not have previously considered investing in smartwatches.
“So it appears inevitable that in the medium to long run smart rings will eat into the smartwatch share of the wearables market. The extent to which they do so is yet to be determined, and there will undoubtedly be people out there who wouldn’t have bought a smartwatch but will buy a smart ring,” Stanbrell said.
However, he said that smart rings have the potential to flourish in the next few years; the extent to which it does will be determined by the number of big players that launch their own rings and if the largely positive reception continues.
“But as smart rings flourish, we will likely see that these wearable makers are, to some extent, taking market share from themselves. As their own smart ring sales rise their sales will likely fall,” he said.
