India has outpaced North America to become the biggest smartwatch market in the world in the third quarter (Q3) of 2022, a new report has said. Homegrown brand Noise grabbed the top spot in the India smartwatch market, courtesy of the festive season and affordable models, a report by Counterpoint Research has said. According to Counterpoint Research’s Global Smartwatch Model Tracker, India’s market grew 171 per cent YoY to become the biggest smartwatch market in the world. Other markets also grew, except China and Europe.
In the case of North America, which remained the largest market from Q4 2020 to Q2 2022, the shipments increased 21 per cent YoY. However, India's growth in the smartwatch segment pushed it to the second spot globally.
“Among the types of smartwatches, the basic smartwatch, with relatively lighter versions of operating systems (OSs) and more affordable prices, has been the key driver in sharply boosting the global market recently. While HLOS smartwatch shipments grew 23 per cent YoY in Q3, basic smartwatch shipments more than doubled YoY, accounting for 35 per cent of the total market.
"This remarkable increase in basic smartwatch shipments shows us that the market base is rapidly expanding toward more accessible segments amid aggressive drives by the supply side. But still, in terms of revenue, the HLOS smartwatch overwhelms the basic smartwatch with a market size of almost 10 times due to its high average selling price (ASP)," Woojin Son, Research Analyst at Counterpoint Research, said in a statement.
Homegrown brand Noise grew 218 per cent YoY to regain the top spot in the Indian market, followed by another domestic brand Fire-Boltt.
In terms of regions, India occupied the top position in smartwatch shipments for the first time. “India’s smartwatch market grew 171 per cent YoY in Q3 to become the biggest market in the world. The main factor behind the record quarter was India’s festive season. Indian brands expanding their product portfolios at affordable price points and emphasis on local manufacturing also contributed to the growth.
"Bluetooth calling emerged as an important feature, contributing a 58 per cent share in total shipments, the highest ever share to date. Consumers are also preferring bigger display sizes, which is evident from the fact that over half of the total shipments in Q3 came from the 1.5-inch-1.69-inch display size," said Anshika Jain, Senior Analyst at Counterpoint Research.