- Players in the industry will need to focus on enhancing differentiation, fostering innovation, and exploring new avenues for growth to navigate this evolving market landscape successfully.
- Fire-Boltt maintains its position as the market leader, with Noise and boAt following closely behind during the first quarter.
The smartwatch market in India experienced a marginal increase of 0.3 per cent year-over-year in the first quarter of 2024, signifying the first instance of stagnation in this dynamic industry, as reported by Counterpoint.
In recent years, the Indian smartwatch market had been thriving, fueled by a surge in demand, particularly from the younger demographic. However, the subdued growth observed in the first quarter of 2024 suggests a decline in the rate of smartwatch replacements among early adopters, attributed to the lack of substantial differentiation and innovation among key players.
Anshika Jain, Senior Research Analyst, remarked on the market trends, highlighting that after enjoying double- and triple-digit growth in previous years, the overall market remained relatively flat.
Some leading brands encountered challenges in clearing their existing inventory, with consumers showing reluctance towards purchasing new smartwatches or upgrading their current ones due to a dearth of distinctive features and limited advancements in the market.
Novelty wears off
Consequently, the combined market share of the top three players dropped from 77 per cent in the first quarter of 2023 to 66 per cent in the first quarter of this year.
Among the brands, Fire-Boltt maintained its position as the market leader, with Noise and boAt following closely behind. Fastrack experienced a positive performance, attributed to enhanced distribution channels and the launch of new models. beatXP’s shipments doubled as it focused on affordable smartwatches aimed at the entry-level segment.
In the premium segment, Apple witnessed significant growth, more than tripling its market share due to sustained demand for the Apple Series 9 and Apple Watch Ultra 2. Samsung also performed well, with almost half of its shipment volume coming from the Galaxy Watch 6 series.
Regarding consumer sentiment, Research Analyst Harshit Rastogi noted that the rapid expansion of smartwatches in the Indian market in recent years had primarily been driven by their appeal as affordable fashion accessories.
However, he said that the initial growth spurt is now showing signs of cooling off as the novelty of the segment wears off. This trend is further reflected in diminishing growth rates and a somewhat pessimistic outlook. Forecasts indicate a double-digit percentage decline in the market for 2024.
“Nonetheless, from 2026 onwards, a revival is anticipated, fueled by emerging use cases for smartwatches. While new users will continue to join the smartwatch market, the growth rate is expected to slow down,” Rastogi said.