The number of shipments during the year is projected to be 368.2 million and the market is forecast to grow to 526.8 million shipments by the end of 2024, with a five-year compound annual growth rate of 9.4%.
IDC Mobile Device Trackers research manager Jitesh Ubrani said watches and wristbands would be negatively affected in the short term.
"We anticipate a 13% decline collectively during the first quarter as many factories in China struggle with manufacturing due to labour and component shortages," he said.
IDC Wearables Team research director Ramon Llamas said continued interest was expected in in hearables and smartwatches this year.
"Hearables have become the must-have wearable device for end users and are available at a broad range of price points and feature sets," he said.
"Meanwhile, smartwatches have gradually gained greater salience not only for health and fitness but simply for the convenience of having information surfaced to the wrist, and convenience is what owners appreciate the most in their wearables."
IDC said that while earwear or hearables were expected to show a five-year CAGR of 10.3%, reaching 301.5 million units by 2024, watches, including smartwatches and basic watches, would experience a five-year CAGR of 11.4%.
But the market for wristbands was expected to remain nearly flat with a 1.8% CAGR.