The Indian smartwatch industry witnessed substantial growth in 2023, even as the smartphone market remained relatively stagnant. Smartwatch shipments in India surged by 50%, largely driven by the availability of affordable smartwatches catering to diverse consumer segments.
Factors Driving Growth
A report by Counterpoint Research attributes the surge in smartwatch shipments to several key factors. Firstly, the market saw the introduction of low-cost smartwatches aimed at capturing the attention of first-time users. Additionally, robust marketing and distribution efforts, coupled with increased local manufacturing, contributed to the expansion of the smartwatch market in India.
Furthermore, growing consumer awareness about health monitoring features, such as heart rate and blood oxygen saturation levels (SpO2), fueled demand for smartwatches equipped with such functionalities.
Dominance of Top Brands
The Indian smartwatch market is largely dominated by a handful of key players. Notably, Fire Boltt and Noise emerged as the top two smartwatch manufacturers, collectively commanding over 55% of the market share. When combined with the next three leading brands, the top five players account for a remarkable 81% of the total market share, underscoring a trend towards consolidation in the industry.
Harshit Rastogi, a research analyst at Counterpoint Research, highlighted the market’s consolidation, with over 125 active smartwatch brands competing in 2023. However, the majority of these brands, numbering 120, contributed to less than 20% of the total shipments.
Rise of Affordable Offerings
Fire Boltt and Noise’s success in the Indian smartwatch market can be attributed to their focus on affordability and diverse product portfolios. The availability of smartwatches priced under ₹2,000 witnessed a significant surge, comprising 54% of total shipments in 2023 compared to just 26% in the previous year.
According to Rastogi, the expansion of product portfolios by leading players aimed to cater to various consumer segments, with a notable shift towards lower price bands.
Premium Segment and Growth Outlook
While affordable smartwatches dominate the Indian market, premium offerings from brands like Samsung and Apple have yet to secure a spot in the top five in terms of market share. However, Apple leads the premium smartwatch segment, particularly with devices priced above ₹20,000.
Anshika Jain, a senior research analyst at Counterpoint Research, anticipates continued growth in the Indian smartwatch market, albeit at a slightly slower pace. Quarterly growth rates have moderated from triple to double digits, signaling a trend towards wider adoption. Counterpoint Research forecasts a year-on-year market growth of 23% in 2024.
