India’s smartwatch shipments declined 30% year-on-year in 2024, the market’s first major drop after years of growth, according to Counterpoint Research’s Q4 2024 India Smartwatch Shipment Tracker.
The report noted that India’s smartwatch market saw a downturn during the year due to a slower replacement cycle. This was primarily due to limited differentiation in the lower price segments, a lack of innovation, low sensor accuracy, an unclear product portfolio that made it difficult to select the right model, and an unsatisfactory experience with initial smartwatch purchases.
Declining first-time users and price wars further led to a decline in value and volume.
However, this dip in growth is expected to be only a temporary pause, suggesting that the adoption rates could rise in the future as the smartwatch attach rate is still low.
The market is undergoing a correctional phase, prompting OEMs to adjust their strategies accordingly, shared Senior Research Analyst Anshika Jain said. OEMs are now prioritising improving user experience and incorporating new features such as NFC, GPS, and cellular connectivity while slightly moving up the price ladder and targeting kids’ segments as well.
Interestingly, the premium segment (Rs 20,000 and above) bucked the trend and surged 147% YoY as some experienced users gradually moved to advanced smartwatches with better health insights, smartphone integration, and other features.
Apple, Samsung and OnePlus were the top three players in the premium segment.
At the OEM level, Noise led the market with a 27% share followed by Fire-Boltt with a 19% share. Titan, the parent brand of Fastrack, was the only key OEM to register growth at 35% YoY while Boult remained flat. CMF by Nothing registered over 5x growth with its Watch Pro 2 while realme re-entered the market with the Watch S2.
In terms of distribution channels, online remained the preferred choice, capturing 66% of the market share. Meanwhile, the offline channel continued to expand as OEMs forged new partnerships and increased offline availability.
Commenting on the market outlook, Research Analyst Balbir Singh said, “As consumer awareness on health tracking and the necessary sensors grows, we expect users to be more inclined to invest in high-quality products that can transform their experience. OEMs should prioritise rebuilding customer trust in this segment to stimulate demand.
The change will occur gradually as OEMs bring new features and consumers replace their older smartwatches, leading us to project a modest single-digit percentage decline in 2025.”
Earlier, the market used to see several entrants each quarter. However, for 2025, Singh expects fewer entrants due to intense competition and lower margins.
“Established OEMs are likely to shift towards the higher price segments as they try to recuperate their margins. The premium segment will continue to grow due to its higher aspiration status and overall better devices,” he said.