While browsing through the internet, I stumbled upon an intriguing article with a report on the booming wearables market in India. Curious to learn more, I delved into the details and decided to share a comprehensive summary of the report with all of you. So, let’s dive into the fascinating world of India’s wearables market and discover the remarkable growth it has been experiencing.
Introduction
The wearables market in India is experiencing a remarkable surge, positioning the country to claim the coveted title of the world’s largest wearables market in 2023. According to market research firm IDC India, India is expected to account for a significant share of the global shipments, with approximately 130-135 million units, representing around 26% of the total 504.1 million units projected to be shipped worldwide this year. This growth trajectory showcases India’s potential to drive the global demand for smartwatches and hearables, particularly as other major markets like North America and China face saturation amidst macroeconomic challenges.
India’s Rapid Rise in the Wearables Market
In 2022, India shipped nearly 100 million units of wearables, lagging behind China and North America but still comprising nearly a fifth of the global shipments, as stated by IDC. However, this year, India is set to surpass its competitors and emerge as the largest wearables market globally. The wearables market in India secured the top spot on a quarterly basis in the first quarter of this year, accounting for 26% of global shipments according to IDC India and 27% as per Counterpoint Research.
The growth in India’s wearables market can be attributed to its lower penetration and attach rate, which refers to the number of smartphone users owning a wearable device, compared to other regions. Counterpoint Research reveals that for every smartphone sold in India, one smartwatch is also sold, highlighting the untapped potential in the market. This lower penetration leaves room for significant expansion and provides an opportunity for both domestic and international players to cater to the rising demand.
Factors Driving India’s Wearables Market
One of the key drivers behind India’s wearables market growth is the availability of low-cost yet feature-rich devices from local vendors. IDC research manager Jitesh Ubrani emphasizes that India has already surpassed the United States and China in terms of market size and will continue to hold the top position in the future. This growth is projected to revitalize the global wearables market, which experienced a decline in 2022 but is expected to rebound this year with the help of India’s robust expansion. IDC estimates a 2.4% year-on-year growth, reaching 629.4 million units in 2027, with China and the US securing the second and third largest markets, respectively, in 2023.
Market Distinctions and Challenges
It’s important to note that the Indian wearables market differs from its counterparts in North America and China in terms of maturity, product offerings, and pricing. While India is dominated by low-cost basic offerings, North America and China thrive on wearables with higher average selling prices and advanced operating systems such as Apple’s WatchOS and Google’s Wear OS.
IDC predicts a challenging environment for smartwatches from brands like Apple, Samsung, and Google in 2023, as the pricing of these devices has risen amid a tough macroeconomic climate. Even with discounts, it is difficult to offset the impact of inflation and foreign exchange rates. In contrast, India’s average selling prices are expected to decline further, making it the lowest across all regions. IDC forecasts a decrease to $23-25 this year from $27 in 2022. This affordability factor, combined with a wide range of product offerings at various price points, contributes to India’s attractiveness for consumers.
India’s Potential and Future Prospects
With approximately 650 million smartphones installed in India, the wearables market has immense untapped potential. As Upasana Joshi, an IDC researcher, highlights, affordability and declining average selling prices are the key drivers of growth in India. The challenge for brands moving forward lies in differentiation through research and development, local component sourcing, sensor accuracy, battery life improvement, and privacy enhancements.
Furthermore, Counterpoint Research reveals that around 40% of total shipments in 2022 in India consisted of products priced under Rs 2,000, demonstrating a significant demand for affordable wearables in the market. This reinforces the need for brands to focus on innovation while maintaining competitive pricing.
Conclusion
India’s wearables market is on an upward trajectory, poised to claim the title of the world’s largest market in 2023. Its rapid growth, driven by affordability, diverse product offerings, and a large base of smartphone users, sets the stage for significant expansion in the coming years. As the wearables market in North America and China faces saturation, India’s potential to drive global demand for smartwatches and hearables cannot be overstated. With the right focus on R&D, local sourcing, and user-centric innovations, India’s wearables market is expected to maintain its growth momentum, contributing to the resurgence of the global wearables market in the years to come.