Indian Economy News

In July-September, there has been a 21% year-on-year surge in India’s smartwatch market

  • IBEF
  • November 28, 2023

According to the most recent data from Counterpoint's IoT (Internet of Things) Service, shipments of smartwatches increased by 21% year-on-year in India during the third quarter of 2023.

The increase was attributed to a large inventory build-up ahead of strong sales during October's holiday season.

While the top three competitors in the industry were still driving it, new entrants like Fastrack and beatXP delivered large volumes and reduced their market share. The survey also stated that the share of domestic manufacturing hit an all-time high of 82%, up from 4% a year earlier.

Ms. Anshika Jain, the Senior Research Analyst at Counterpoint's IoT Service, stated that in the coming years, the market will eventually continue to grow in double digits owing to the brand’s efforts to expand their portfolios, offline partnerships with various Large-Format Retailers (LFRs), and growing emphasis on local manufacturing.

According to reports, Noise and boAt trailed closely behind Fire-Boltt, who emerged as the market leader with an astonishing 28% share. Among the top five brands, Fastrack, a Titan subsidiary, had the most annual increase, indicating its growing influence in the industry. BeatXP also debuted in the top five, which was a noteworthy move into the cutthroat smartwatch industry.

Regarding cost, researchers pointed out that the focus on low-cost alternatives has caused India's Average Selling Price (ASP) for smartwatches to drop sharply year over year by 41%, to an all-time low. As a result, over three-quarters of the market currently occupies a price range of less than Rs. 2,000 (US$ 23.98).

Mr. Harshit Rastogi, Research Analyst at Counterpoint's IoT Service, stated that in this quarter, there was the availability of smartwatches for less than Rs. 1,000 (US$ 11.99) to target first-time users. The trend was further accelerated by the basic smartwatches' shorter replacement cycles and the fact that this price range saw the greatest number of new releases.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.