In Q1 2025, smartwatch shipments were down by 24.4 pc. (Photo: Canva)
After years of rapid growth, the market for smartwatches, those wearable computers on our wrists tracking everything from health data to notifications and fitness, in India saw a sharp decline in 2024, for the first time in years.
In 2023, for instance, a huge boost in shipments led to a reported growth of 50 pc, according to Counterpoint Technology Market Research.
However, most of the products were in the low-budget category and according to the report, 54 pc of the market was under the INR 2,000 price band, showing an impressive 3-fold growth that year. Back in 2022, India had claimed the title of the world’s largest smartwatch market, with shipments soaring by 151.3 pc to 30.72 million units, marking an annual jump of 167 pc. Basic smartwatches led the way with a 95.5 pc market share, and Bluetooth calling became a standout feature, making up 58 pc of all shipments.
But, in 2024, smartwatch shipments crashed by 30 pc. According to the research firm, shipments dropped to around 35 million units in 2024, compared to over 50 million units in 2023.
According to the report, the decline is mainly driven by weaker upgrade cycles and poor user experiences among first-time buyers. Leading low-cost brands like Noise, Fire Boltt, and BoAt have also seen a drop in shipments, largely due to these same issues, limited innovation and disappointing performance.
Analysing the fall, Sushant Dewan, owner of electronics store Mobile Zine, located at Dwarika said that a lack of accuracy and poor after-sales service have been major reasons behind the decline in smartwatch shipments.
“First of all, there is no accuracy. For example, if you compare it with Samsung or Apple, the step count just is not accurate, there is a clear difference. Either we sell it to a customer and they return it, or they complain about it later. That is one reason. The other is service. Even if the service is available online, it takes a long time. Sometimes, there is no service centre nearby at all,” Dewan tells Media India Group.
However, according to Aman Rajput, a product executive at Vijay Sales, market saturation, intense competition, price sensitivity, and lack of penetration in rural areas have also played a major role in the decline of smartwatch shipments in India.
“Market saturation is one of the reasons. In metros and Tier I cities, most people who wanted a smartwatch already have one. Then there is price sensitivity, Indian customers are very conscious about pricing. With input costs going up and some smartwatches getting more expensive, many people are now going for fitness bands instead, they are cheaper and offer similar features. Also, the competition is brutal. Local and foreign brands are constantly undercutting each other, which has led to price wars and lower profits, so some brands have stepped back. Rural areas are still tough to crack due to lower digital adoption, income levels and lack of marketing,’’ Rajput tells Media India Group.
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Premium brands winning smartwatch market
But amidst the overall decline in the smartwatch market, the premium segment continues to thrive, recording a growth of 147 pc. According to Anshika Jain, Senior Research Analyst at Counterpoint Research, this surge is driven by consumers increasingly opting for advanced smartwatches that offer better health insights, seamless smartphone integration, and enhanced features.
“Interestingly, the premium segment which is above INR 20,000 bucked the trend as the segment grew by 147 pc as some experienced users gradually moved to advanced smartwatches with better health insights, smartphone integration, and other features. Apple, Samsung and OnePlus were the top three players in the premium segment,” emphasises Jain in the report.
Dewan adds that premium brands have performed better because they offer more reliable features compared to non-premium ones.
“The main thing customers look for now is advanced features. Take Samsung, Amazefit, or Apple for example, you get accurate tracking, waterproofing, durability and all the latest features. Plus, they are repairable, and the service quality is much better. That is why people prefer them over cheaper options,” adds Dewan.
Rajput also points out that the growth in the premium segment is being driven by advanced features such as AI integration, personalised assistance, enhanced health and wellness tracking. He added that brand loyalty and seamless integration within existing ecosystems are also key factors influencing consumer preference for premium smartwatches.
“Premium smartwatches come with advanced health features like ECG, SpO2, sleep tracking, and stress monitoring, which attract health-conscious buyers. With AI-powered insights, personalised fitness plans, and seamless integration with other devices, people see them as essential lifestyle companions. And when someone is already invested in a brand’s ecosystem, like Apple or Samsung, they tend to stick with it, leading to more upgrades and repeat purchases,” adds Rajput.
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Current Status of the smartwatch market in India
Meanwhile, while India’s smartwatch market had been on an upward trajectory, recent data reveals a sharp slowdown. The International Data Corporation (IDC) reports an 11.3 pc decline in the Indian wearable device market in 2024. This marks the first decline in shipments, with total wearable device shipments dropping to 119 million units. Moreover, the slowdown continued into the fourth quarter, where smartwatch shipments plunged by 27.4 pc, signalling a shift in market dynamics.
Rajput points out that the decline has persisted into this year, with smartwatch shipments falling by 24.4 pc in the first quarter, marking the 14th consecutive month of decline. IDC also predicts a further 25 pc drop for the quarter, attributing it to innovation fatigue and a slowdown in consumer demand.
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“The downturn has stretched into 2025. In Q1, smartwatch shipments were down by 24.4 pc, marking the 14th consecutive month of decline. IDC is expecting another 25 pc drop this quarter, largely because of innovation fatigue and softer demand. Looking at 2024, the budget segment saw some pretty steep declines, Fire-Boltt shipments dropped 54 pc, boAt fell by 47 pc and Noise saw a 26 pc dip. But despite that, Noise still holds the largest market share at 27 pc, followed by Fire-Boltt at 19 pc and boAt at 13 pc,” adds Rajput.
Dewan points out that the smartwatch industry is experiencing a significant downturn. He expressed that, given the ongoing challenges, he does not expect any substantial growth in the market for a long period of time.
“The market is down, and it is not performing well. Smartwatches were supposed to be a replacement for phones, but customers still end up carrying their phones. The demand is just not there anymore. Customers say they like the calling feature, but they still need to charge the watch frequently, and it does not offer enough value. We used to have higher volumes, but now interest has dropped significantly. If you are giving them to kids, you can buy one online for INR 5,000-12,000, but adults are not interested in that. I don’t see the market growing in the future,’’ adds Dewan.
However, Rajput believes this is just a temporary dip, and the market is poised for a strong rebound in the late 2020s.
“After a bit of a slowdown in 2024-25, I think the smartwatch market in India will bounce back strong. In 2026, we will see growth pick up again with new use cases like remote health monitoring, kids’ watches, and enterprise devices. People are also moving towards higher-end models with more features, which will push up prices. Gen Z and tech-savvy city dwellers will drive the demand, especially with localised apps. With deeper integration into smartphones and smart homes, smartwatches will become essential for everyday life,” adds Rajput.
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Although the Indian smartwatch market has experienced a slowdown with declining shipments and shifting consumer behaviour, the premium segment continues to thrive. Many electronic dealers like Rajput remain hopeful for a strong recovery by the late 2020s, which is driven by emerging use cases, higher-end models, and a tech-savvy, younger demographic. As smartwatches become more integrated into daily life, particularly for health and lifestyle management, the market is poised for steady growth in the years ahead. Innovation, quality service, and catering to both urban and rural needs will be key to this revival.