Witnessing the first ever decline in the market, the global smartwatch market fell 7% in 2024, according to a Counterpoint Research report. The downturn was primarily due to a decline in Apple’s shipments as the basic smartwatch segment saw lower upgrades amid a slowdown. Weakness in the basic smartwatch market originated in India, where consumer demand waned due to a slow replacement cycle, lack of innovation and unsatisfactory user experiences among first-time buyers.
In 2025, the smartwatch market, however, is expected to recover slowly and witness single-digit percentage growth, the report said. Both Android and iOS smartwatches are expected to integrate more AI capabilities and advanced sensors.
In 2024, Apple retained its top position, despite a 19% year on year decline in shipments due to tighter competition and weaker upgrade cycles. China captured the biggest shipment share for the first time, driven by the strong performance of Chinese brands including Huawei, Xiaomi and BBK (Imoo).
Kids smartwatch was the only segment to witness a rise in 2024, as parents’ awareness increased, and brands expanded in this category, the report highlighted.
Apple retained its top position in the global market, hoisted by its growing iOS user base, followed by Samsung, which witnessed 3% YoY growth as its newly launched Galaxy Watch 7, Galaxy Watch Ultra and Galaxy Watch FE Series saw strong adoption. Xiaomi made a remarkable entry, experiencing the fastest growth in 2024 and securing a spot among the top five for the first time. The brand saw growth across all regions, propelled by its portfolio expansion and the strong performance of its Watch S1 and Redmi Watch series.
Commenting on Apple’s performance, Senior Research Analyst Anshika Jain said, “Apple Watch witnessed a decline in momentum on its 10th anniversary, despite the launch of the S10 series. The biggest driver of the decline was North America, where the absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases. Additionally, patent disputes limited shipments in the first half of the year. The slowdown of the existing Apple Watch SE lineup and the lack of new SE models also contributed to the decline.”
“In terms of regions, China, for the first time, recorded the highest ever shipments, surpassing NAM and India in 2024. Huawei, Imoo and Xiaomi were the front runners of the China market. Their diverse portfolios, ranging from basic, advanced to kids’ smartwatches, along with the Chinese consumer’s inclination towards these brands drove the overall adoption,” Jain added.
Research Analyst Balbir Singh said the kids’ smartwatch segment is gaining traction as parents are concerned for their children’s safety, and they desire to track and stay constantly connected with their children. With the decline of basic smartwatches, other brands such as Noise, boAt and Google’s Fitbit have started diversifying their portfolio to include kids’ smartwatches. This is a good sign for the market’s diversification and indicates further growth in the future.
Commenting on the global smartwatch market outlook, Associate Director David Naranjo said, “The smartwatch market is expected to recover slowly and witness single-digit percentage growth in 2025. Both Android and iOS smartwatches are expected to integrate more AI capabilities and advanced sensors to provide deeper insights into health data. For advanced sensors, smartwatches are expected to incorporate sensors for measuring bodily signals such as serious heart health tracking, focusing on atrial fibrillation, sleep apnea, hypertension, and diabetes. Brands will emphasise on getting regulatory approvals for their new smartwatch models and incorporating new health features to sustain their position in the market.”