India Becomes the Biggest Smartwatch Market in 3Q22

Despite inflation and geopolitical crises that have continued since the beginning of this year, the global smartwatch market shipments increased by 30% in the third quarter of 2022, according to Counterpoint Research. During the quarter, India’s market grew 171% to become the biggest smartwatch market in the world. Other markets also grew, except China and Europe.

“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% in 3Q22, basic smartwatch shipments more than doubled YoY, accounting for 35% 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),“ said Woojin Son, Research Analyst at Counterpoint Research.

Apple grew 48% thanks to strong sales of its newly released Apple Watch 8 series. Released in early September, the new series accounted for about 56% of the overall shipments. Apple accounted for about half of the market among HLOS smartwatches in 3Q22. However, this was a slight decrease from the 54% share in 2Q22 due to the slump in North America and Europe, which are major markets.

Samsung increased its shipments by 62% QoQ by launching the new Galaxy Watch 5 series, while its market share in the HLOS segment increased by 5% points QoQ. However, Samsung’s shipments only grew 6% YoY as it lost ground in India, falling below 3% share there. In the global market, Samsung was still in second place but with a decreased market share (down by 2.7% points), narrowing the gap with the third-placed Noise.

Noise grew 218% to regain the top spot in the Indian market. It ranked third in the global market, followed by Apple and Samsung. In the case of the basic smartwatch market, Noise ranked first in India, but the gap with Fire-Boltt was less than 1% due to fierce competition in that market. Fire-Boltt showed a flat market share compared to the previous quarter but fell behind Noise to retreat to second place in India. But thanks to the Indian market’s rapid growth, Fire-Boltt was able to maintain its fourth place in the global market.

Although Huawei grew 65%, it recorded zero shipments in India for the first time since 2018. It ranked fifth in the global market, the same as the previous year. Like Fire-Boltt and Noise, the sixth-placed oat targets the entry-level smartwatch market. oat crossed the 2-million mark in shipments during the quarter. Garmin’s shipments were flat from the previous year. But in terms of revenue, the brand grew 11%. This is because its ASP of about $365 was even higher than Apple’s ASP.

In terms of regions, India occupied the top position for the first time. In the case of North America, which remained the largest market from 4Q20 to 2Q22, the shipments increased by 21%. But India grew so much that it was pushed to second place globally. Due to the continued “zero-COVID“ policy and the subsequent economic downturn, China fell 28%. Its market size decreased for the fourth consecutive quarter.

“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% 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“-1.69“ display size,“ said Anshika Jain, Senior Analyst at Counterpoint Research.