India ranks as the second-largest wearable market globally, trailing only China. Previously, it even held the position as the top smartwatch market. However, recent data indicates a decrease in wearable shipments in India by 10% year-on-year to 29.5 million units in Q2. The first half of the year saw a decline of 4.7% to 55.1 million units, according to the recent report by analyst firm IDC.
Analysts predict a further widening of this decline in the upcoming quarters, primarily attributing it to the decreasing popularity of smartwatches in the Indian market. The survey shows a significant drop of 27.4% year-on-year in smartwatch shipments to 9.3 million units in Q2.
This decline has impacted major Indian smartwatch players, who are facing competition from lesser-known brands. Lack of innovation and differentiation in the market has led to a stagnant demand for smartwatches. Top players like Noise, Fire-Boltt, and boAt have all witnessed a decline in their Q2 numbers.
The decline in smartwatch shipments has caused a shift in the overall wearable market landscape in India, with smartwatches’ share dropping from 39% to 31.5% compared to the previous year. Analysts point to “innovation fatigue” as a key driver of this decline, noting that local brands are introducing models without significant new features.
In contrast to smartwatches, advanced smartwatches with full-fledged operating systems have seen a modest increase in market share, suggesting a potential shift towards more feature-rich wearable devices.
On the other hand, India’s headphone market showed stagnant growth in Q2, with 20.1 million units shipped, reflecting a 0.7% year-on-year increase. The true wireless stereo (TWS) segment saw a notable 9.1% growth, while tethered and over-ear headphones experienced a decline of 16.1% to 5.8 million units.
While the smartwatch market faces a decline with minimal growth expected until 2026, the headphone segment is set to rebound, especially in the TWS earbuds category, which continues to show demand. Domestic and Chinese brands dominate the Indian headphone market, with companies like Oppo and Realme making significant inroads.
