The Indian smartwatch market has surged to prominence, claiming the top spot globally in Q3 2022. With a year-on-year growth of 30%, the global smartwatch market has been primarily driven by the basic smartwatch segment.
Growth in the Indian Market
According to a report by Counterpoint, India witnessed the highest growth, surpassing China and Europe to secure the leading position in the global smartwatch market. The Indian market experienced a remarkable 171% year-on-year growth, capturing nearly one-third of the global market share. In contrast, North America reported a 21% growth, while China saw a decline of 6%.
Domination by Domestic Companies
While Indian companies may not have a significant presence in the smartphone market, they have excelled in other segments. In the smartwatch market, domestic companies have asserted dominance, occupying approximately 80% of the Indian market share. Noise, Fire Boltt, and boAt, the top domestic players, collectively hold 79% of the market share in India. Notably, Noise has secured the third position globally, trailing only behind Apple and Samsung.
Contribution Factors to India’s Growth
The Indian market’s remarkable growth can be attributed to several factors. The festive season, spanning 42 days, has played a pivotal role in boosting sales. Moreover, the introduction of affordable smartwatches and the emphasis on domestic production have significantly contributed to the market’s expansion.
Anshika Jain, Senior Analyst at Counterpoint Research, emphasized the impact of India’s festive season and the focus on local manufacturing on the record-breaking quarter.
Preference for Features
Bluetooth calling has emerged as a crucial feature driving consumer preference in the Indian market. Over 58% of smartwatches sold in India offer Bluetooth calling, marking the highest-ever share for this feature. Additionally, there is a growing demand for smartwatches with larger displays, with over half of the shipments featuring displays ranging from 1.5 inches to 1.69 inches.
Performance of Key Players
Noise, one of the leading domestic brands, reported an impressive year-on-year growth of 218%, reclaiming the top position in the Indian market. Fire Boltt, despite experiencing flat growth, maintained its second position in India and the fourth spot globally. Meanwhile, boAt, India’s third-largest smartwatch brand, secured the sixth position globally, surpassing Huawei, which recorded zero shipments in India for the first time since 2018.
In conclusion, India’s ascent to become the largest smartwatch market globally underscores the country’s growing significance in the technology sector. The surge in demand, driven by affordability and feature-rich offerings, reflects the evolving preferences of Indian consumers in the wearable tech space.
