The smartwatch market in India experienced a remarkable 50% year-on-year growth in 2023, according to Counterpoint Research. This growth signifies a significant technological evolution, where smartwatches are becoming increasingly popular as fashionable accessories and health monitoring devices.
Driving Forces Behind India’s Smartwatch Market Boom in 2023
The growth in the Indian smartwatch market has been primarily driven by local Indian brands such as Fire-Boltt, Noise, and boAt. Fire-Boltt holds a 30% market share, followed by Noise with 26% and boAt with 17%. These brands have successfully captured the market by offering affordable smartwatches, often priced below ₹2,000. This is a significant increase from 26% in 2022. The success of these brands can be attributed to aggressive marketing, local manufacturing, and catering to cost-conscious consumers, thereby making smartwatches more accessible to a broader audience.
Decline in International Premium Brands
Despite the overall market growth, international premium brands like Samsung witnessed a 3% year-on-year decline. However, in the fourth quarter, Samsung experienced a 17% growth, mainly driven by the promotional pricing of their Galaxy Watch 4, which emerged as their most popular model. It also became the top-selling WearOS smartwatch in India. On the other hand, Apple faced a substantial 57% decline in shipments, primarily due to longer replacement cycles, higher price points, and compatibility exclusively with iPhones. Nevertheless, Apple still dominates the high-end market segment, priced above ₹20,000, and expects a gradual increase in Apple Watch shipments in 2024 following a rise in iPhone sales in India during 2023.
Factors Driving the Popularity of Smartwatches
The surge in smartwatch popularity is not solely due to affordability. An increasing emphasis on health consciousness, wellness, and the appeal of tech as a fashion statement are significant factors driving this trend. Consumers are seeking gadgets that allow them to monitor their health metrics, stay physically active, and express their personal style, and smartwatches fulfill these needs.
Promising Landscape for Wearable Tech in India
India's rapid adoption of smartphones and its young, tech-enthusiastic demographic make it an ideal landscape for the expansion of wearable technology. Unlike the saturated market in China, Indian brands have been cautious to enter. India presents a promising opportunity for growth and innovation in the wearable tech space.
Future Outlook and Consolidation
Market analysts anticipate further consolidation in the smartwatch market, with the top five brands already commanding 81% of total shipments. The future is likely to bring a wider range of feature-rich, yet affordable smartwatches that cater to various consumer needs, from fitness tracking to fashion. Additionally, the emphasis on local manufacturing is expected to stimulate job creation and support the development of a self-reliant technology ecosystem in India.
