India's smartwatch market faces first major decline, drops 30% YoY in 2024

After years of consistent growth, India’s smartwatch market experienced a significant setback in 2024, with shipments declining by 30% year-on-year (YoY), according to data published by Counterpoint Research in its Q4 2024 India Smartwatch Shipment Tracker. The drop marks the first major contraction in the segment, attributed to weaker upgrade cycles, lack of innovation, and unsatisfactory user experiences among first-time buyers.

Key Market Trends

The report highlights that the primary reasons for the downturn include a slower replacement cycle, limited differentiation in lower price segments, and declining confidence in budget smartwatches due to inaccurate sensors and unclear product portfolios. Additionally, aggressive price wars among brands led to a reduction in overall value and profitability in the segment.

Despite the decline, the premium smartwatch market (priced above ₹20,000) surged by 147% YoY as experienced users sought devices with enhanced features, including improved health tracking, smartphone integration, and cellular connectivity. Apple, Samsung, and OnePlus emerged as the top players in this premium category.

The kids’ smartwatch segment was another bright spot, witnessing a 5.5x YoY growth in 2024 as OEMs increasingly targeted younger users with dedicated features and enhanced safety measures.

The online channel continued to dominate smartwatch sales, accounting for 66% of total shipments. However, offline retail expansion gained momentum as brands sought to strengthen their presence in brick-and-mortar stores.

Market Outlook and Future Trends

According to Senior Research Analyst Anshika Jain, the market is undergoing a correction phase, prompting brands to recalibrate their strategies. "OEMs are now focusing on enhancing user experience by integrating advanced features such as NFC, GPS, and cellular connectivity while targeting higher price segments," she said.

Looking ahead, Research Analyst Balbir Singh noted that 2025 is likely to witness a modest single-digit decline as consumers become more selective about smartwatch purchases. "We expect fewer new entrants in the market due to intensifying competition and lower margins. Established brands are likely to shift focus to higher-end models to sustain profitability," Singh added.

Despite the downturn, industry analysts believe the smartwatch market will eventually recover as consumer awareness of health tracking and wearable technology continues to grow. Brands that invest in premium features and improve overall customer experience are expected to lead the market resurgence in the coming years.