In 2023, India’s wearables market is predicted to overtake China as the largest in the world, supporting demand for smartwatches and other wearables at a time when North America and China are beginning to show symptoms of saturation due to macroeconomic headwinds.
According to market research company IDC India, India will likely account for 130–135 million, or around 26%, of the total 504.1 million wearables estimated to be supplied globally this year. Behind China and North America, India delivered around 100 million wearables last year, accounting for nearly a fifth of the 492-million-unit global exports, according to IDC. The wearables market in India overtook all other countries on a quarterly basis in January through March of this year, accounting for 26% of global shipments, per IDC India, and 27%, per Counterpoint Research.
Both companies attributed India’s development to its lower attachment rate, or the proportion of smartphone users who also possess a wearable device, compared to other regions.
In India, according to Counterpoint, one smartwatch is presently sold for every smartphone that is purchased.
India is expected to continue to grow in this market category through 2023, according to both market watchers.
According to a report by IDC research manager Jitesh Ubrani, “India has already surpassed the United States and China in terms of market size and will continue to be the largest market going forward.”
The global shipments of wearables will be able to recover because of India’s rapid development, which IDC and Counterpoint both predict will reach up to 35% in 2023. In 2022, shipments of wearables fell for the first time ever. As a result, India will aid in the global wearables market’s 2.4% year-over-year growth this year, according to IDC.
With shipments expected to reach 629.4 million units in 2027, the global market will likely have several years of single-digit growth, according to IDC, which predicted a compound annual growth rate of 5%. It predicted that in 2023, the US and China would be the second and third biggest markets, respectively.
China’s and North America’s markets are expected to likely decline this year, according to Counterpoint.
India’s market is undoubtedly distinct from those in North America and China in terms of market maturity, product options, and pricing, according to Upasana Joshi, an IDC researcher.
While low-cost, simple products rule the Indian market, wearables with higher average selling prices and advanced operating systems like Apple’s WatchOS and Google’s Wear OS rule the markets in North America and China.
According to IDC, the market for smartwatches from Apple, Samsung, and Google will be difficult to navigate in 2023 since many of their prices have increased under a severe macroeconomic environment, and even reductions won’t be enough to counteract the effects of inflation and fluctuating currency exchange rates.
In contrast, IDC predicted that India’s average selling prices (ASPs), which were already the lowest across all regions, would continue to drop. It predicts that from $27 in 2022, India’s ASPs will drop to $23–25 this year.
India continues to stand out among other areas as a result. India has a lot of untapped potentials, according to IDC’s Joshi, especially with 650 million cell phones installed and a low wearable device penetration rate.
“In India, affordability and falling ASPs are the primary growth factors. The availability of numerous products at varying price points also gives consumers a wide range of options, according to Joshi.
IDC predicted that the earwear market, which accounts for 60% of wearable shipment volume, will consolidate moving forward because of the device’s restricted use cases, lack of innovation, and discomfort from all-day use.
As opposed to this, IDC’s Joshi noted that smartwatches provide more technological innovation, different designs, and utility to daily life. Considering smartwatches as accessories rather than tech products could present difficulties in this situation, affecting refresh cycles and average selling prices.
