India’s Smartwatch Market Decline in 2024

India’s smartwatch market faced a notable decline in 2024, as shipments fell by 30% when compared year-on-year (YoY), according to insights from Counterpoint Research’s Q4 2024 India Smartwatch Shipment Tracker. This decline represents the first significant downturn in the sector, which is linked to slower upgrade cycles, a lack of innovative offerings, and unsatisfactory initial experiences for new users.

Key Market Trends

The report indicates that factors contributing to this downturn include a gradual replacement cycle, minimal product differentiation in lower price brackets, and eroded consumer confidence in budget smartwatches. These budget options have faced criticism for poor sensor accuracy and a muddled product line-up. Furthermore, intense price competition among brands has led to diminished overall value and profitability within the industry.

In contrast, the premium smartwatch market, with devices priced above ₹20,000, experienced remarkable growth of 147% YoY as seasoned users sought devices that provide superior functionalities. These features encompass improved health monitoring, smartphone compatibility, and cellular capabilities. Notably, Apple, Samsung, and OnePlus have emerged as the dominant players in this premium segment.

A particularly positive development was seen in the kids’ smartwatch category, which recorded a growth of 5.5x YoY in 2024. This surge is attributed to Original Equipment Manufacturers (OEMs) increasingly focusing on younger users, offering specialised features and better safety options.

The online sales channel maintained its dominance, representing 66% of overall smartwatch shipments. However, the expansion of offline retail was gaining traction, as brands aimed to bolster their physical store presence.

Market Outlook and Future Trends

Senior Research Analyst Anshika Jain remarked that the market is currently experiencing a correction phase, leading brands to adjust their strategies. OEMs are now emphasising user experiences by incorporating advanced features such as NFC, GPS, and cellular connectivity while also focusing on higher price brackets.

Looking towards the future, Research Analyst Balbir Singh commented that the year 2025 is anticipated to witness a modest decline in the single digits, as consumers become more discerning in their smartwatch choices. He mentioned, “We foresee fewer new entrants in the market due to escalating competition and reduced profit margins. Established brands are likely to redirect their attention to more high-end models to maintain profitability.”

Despite the current downturn, industry experts anticipate that the smartwatch market will rebound as consumers become increasingly aware of health monitoring and wearable technologies. Brands that prioritise the integration of premium features and enhance the overall customer experience are poised to spearhead the market revival in the years to come.