Table of Contents
How Big is the SmartWatch Market in India?
Top Factors Leading to the Boom in India’s SmartWatch Market
SmartWatch Market of India Vs Other Countries: Performance Analysis
India’s SmartWatch Market: Possible Contribution to the Indian Economic Growth Story
The Indian economy has been witnessing remarkable growth in various sectors, and one such segment making significant strides is the smartwatch market. In the third quarter of 2022, India emerged as the largest smartwatch market globally, experiencing a staggering 171% year-on-year growth. Know about the size of the smartwatch market in India, the factors fueling its growth, and its impact on the Indian economic growth story.
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How Big is the SmartWatch Market in India?
According to the Global Smartwatch Model Tracker by Counterpoint Research, the smartwatch market in India has seen an unprecedented surge, surpassing other regions to become the largest market globally. Despite challenges such as inflation and geopolitical crises, India’s market has demonstrated exceptional performance, in stark contrast to declines in smartwatch sales experienced by China and Europe.
In Q3 2022, there was a noteworthy 30% year-on-year increase in global smartwatch shipments. India, for the first time, secured the top position among regions, driven by the Indian economic growth drive and the impressive growth of local brands such as Noise, Boat, and Firebolt. Notably, Noise experienced an outstanding 218% year-on-year growth, reclaiming its leading position in the Indian market. Apple also saw a positive growth of 48% year-on-year, propelled by robust sales of their newly launched Apple Watch 8 series.
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Top Factors Leading to the Boom in India’s SmartWatch Market
According to Senior Analyst Anshika Jain, the impressive Indian economic growth witnessed in India’s smartwatch market during the third quarter of 2022 can be attributed to the festive season. The expansion of product portfolios by Indian brands, offering affordable options, and a focus on local manufacturing have also played a pivotal role in driving this growth.
A significant contributing factor has been the surging popularity of Bluetooth-calling features, constituting a record-high 58% share in total shipments for the period. Notably, consumers are expressing a preference for larger display sizes, with the 1.5”-1.69” segment accounting for over half of Q3’s total shipments.
Despite North America maintaining its position as the largest market with a 21% year-on-year increase in shipments, India’s remarkable surge has propelled it to the second spot globally. In contrast, China faced a 28% year-on-year decline, attributed to the persistent “zero-COVID” policy and ensuing economic challenges. This downturn marked the fourth consecutive quarter of a contracting market size for China.
Research Analyst Woojin Son emphasized the growing popularity of basic smartwatches, featuring lighter operating systems and more budget-friendly prices. With Indian economic growth, basic smartwatch shipments comprise of 35% of the total market and more than doubled year-on-year. This upswing in basic smartwatch shipments indicates a swift expansion of the market into more accessible segments. However, concerning revenue, HLOS smartwatches continue to dominate the market due to their higher average selling prices.
SmartWatch Market of India Vs Other Countries: Performance Analysis
In Q1 2023, the global smartwatch market experienced a 1.5% year-on-year contraction, marking the second consecutive quarter of decline, primarily attributed to diminished demand from major players like Apple and Samsung and global financial pressures affecting consumer sentiment. Notably, India emerged as a standout performer with a remarkable 121% year-on-year Indian economic growth in smartwatch shipments, effectively mitigating the global decline.
This surge in Indian economic growth in smartwatch market was fueled by affordability, increased customer demand, and a diverse range of budget-friendly options, with shipments below INR 2,000 constituting 40% of the total, a record high. Indian brands, adapting swiftly to customer needs, surpassed a 90% market share for the first time.
Contrarily, all other regions, excluding India, witnessed a decline in smartwatch shipments in Q1 2023. Apple, a global market leader, experienced a 20% year-on-year decline, with its market share dropping from 32% to 26%, attributed to the ongoing macroeconomic crisis affecting the accessibility of higher-priced Apple Watches. Fire-Boltt, an Indian brand, secured the second position globally, surpassing Samsung for the first time, with shipments nearly tripling year-on-year. Other Indian brands like Noise and boAt also contributed to the market’s expansion and the Indian economic growth in the last two years.
China’s smartwatch market faced a significant 28% year-on-year contraction, the sharpest among major regional markets, influenced by the slower-than-expected recovery of the Chinese economy. In summary, despite the global smartwatch market’s overall decline in Q1 2023, India’s exceptional growth emerged as a pivotal factor in offsetting the downturn. The affordability and performance of smartwatches in India underscore the country’s significance as a key player in the global market, showcasing unique dynamics that set it apart from other regions.
India’s SmartWatch Market: Possible Contribution to the Indian Economic Growth Story
India’s smartwatch market is emerging as a significant player in the Indian economic growth narrative, demonstrating impressive resilience and growth despite global market contractions. Recent data reveals that Boult Audio, a relatively new entrant, has secured a 3.4% share of quarterly shipments in April-June 2023, a substantial improvement from its meager 0.3% share a year ago. This exemplifies the dynamic nature of the market, with players like Xiaomi, Noise, Fire-Boltt, and now Boult Audio experiencing shifts in market dominance.
In a highly competitive landscape, where brand loyalty is not yet firmly established, companies are employing aggressive pricing strategies to sustain growth. The average selling price of smartwatches in India has declined by nearly 45% in just one year, reaching $25.6 in the June quarter. This decline can be attributed to reduced production costs and a strategic focus on the lower end of the market. The sub-Rs 2,000 retail price band, which captures 40% of the market, reflects the intense competition and price sensitivity among consumers.
Market leaders like Fire-Boltt and boAt have swiftly adapted to the demand for budget-friendly options, contributing to the growth of India’s smartwatch market and thereby, the Indian economic growth. With new entrants like Titan expressing their intentions to enter the market and existing players like Boult Audio gaining traction, the smartwatch sector is poised to play a pivotal role in India’s economic narrative. Innovation, affordability, and an increasingly price-sensitive consumer base are driving the growth of this sector.
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Conclusion
The Indian smartwatch market’s extraordinary growth has bolstered the Indian economic growth story, positioning it as the largest smartwatch market globally. Various factors have contributed to this unprecedented growth. While the global smartwatch market has experienced stagnation, India’s demand for smartwatches has remained strong, driven by the accessibility and performance of affordable products. The smartwatch market’s success reflects India’s increasing technological adoption and consumer preferences, further propelling India’s economic growth.
