Fire-Boltt leads followed by Noise, boAt; but India’s smartwatch market stagnates in Q1 2024
After witnessing continued double- and triple-digit growth over the past few years, India's smartwatch market was flat in Q1 2024, stagnating for the first time ever. Top three OEMs’ combined market share dropped to 66% in Q1 2024 from 77% a year ago.
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India’s smartwatch shipments rose marginally by 0.3% YoY in Q1 2024, marking the bustling market’s first-ever stagnation, according to the latest research from Counterpoint’s IoT Service. The Indian smartwatch market was on a high growth streak over the past couple of years driven by high demand, particularly from the youth. However, the muted growth in Q1 2024 indicate declining replacement rates among early adopters due to limited differentiation and innovation among key players.
Commenting on the market trends, Senior Research Analyst Anshika Jain said, “The overall market, which has been registering double- and triple-digit growth over the last couple of years, remained flat in Q1 2024 as some top brands faced difficulties in clearing their existing stocks. Consumers are not warming up to buy a new smartwatch or replace an existing one due to low differentiation in terms of features and limited innovation in the market leading to decline in combined market share of the top three players from 77% in Q1 2023 to 66% in Q1 2024.”
In terms of brands, Fire-Boltt continued to lead the market, followed by Noise and boAt, respectively. Fastrack performed well, driven by improved channel presence and new model launches. beatXP’s shipments doubled as it focused on low-ASP smartwatches and targeted the entry-level segment.
In the premium segment, Apple grew more than 3x due to continued demand for the Apple Series 9 and Apple Watch Ultra 2. For Samsung, almost 50% of its shipments volume came from the Galaxy Watch 6 series.
On the consumer outlook, the hyper growth of smartwatches in the India market over the past few years has been primarily driven by its appeal as a low-cost fashion accessory. However, this initial growth phase is now cooling down as the initial excitement of the segment is tapering off. Research Analyst Harshit Rastogi said, “This is also reflected in the dwindling growth rates and a bleak outlook. The market is forecast to witness a double-digit percentage decline in 2024. However, in 2026 and beyond, we expect the market to recover driven by newer use-cases in smartwatches. We will continue to see new users added to the category but at a slower growth rate.”
