Once the most popular wearable for fitness and tech users, the smartwatch market in India is now losing momentum. Shipments fell for the sixth straight quarter, dropping 28.4% year on year to 6.6 million units in the June 2025 quarter.
According to the IDC India Monthly Wearable Device Tracker, smartwatches now make up only 24.9% of the wearable device market. A year ago, that share was 31.5%. The slowdown follows the surge of 2022 and 2023, when entry-level models drove demand. Today, the segment shows signs of saturation and lower consumer excitement.
Smartwatch Prices inch up despite falling volumes
Even with weaker demand, average selling prices (ASPs) rose 5.1% year on year, climbing from $20.6 to $21.7 in the June quarter. Higher prices reflect a shift toward better build quality and features. Advanced smartwatches also declined, with shipments down 39.5% and market share slipping from 2.5% to 2.1%.
Amit Khatri, co-founder of Noise, said the market is moving into a recalibration phase. He noted that customers are now more focused on value and trust rather than just low prices. Noise has kept its lead for four years and held a 30.9% market share in Q2 2025.
Key players in the smartwatch market
Noise remained the top vendor. boAt moved up to second place with a 13.7% share. Xiaomi recorded the strongest growth among the top ten vendors, with shipments rising 145.5% year on year.
The first half of 2025 saw fewer new smartwatch launches. This slowdown was due to regulatory requirements around local manufacturing and softer consumer demand. IDC expects shipments to decline in double digits for the full calendar year.
Smartwatch Market outlook for the festive season
Analysts see brands shifting their focus in the second half of the year. Mid-premium smartwatches are expected to grow, offering features such as:
- Advanced health sensors
- NFC for payments
- AI-driven predictive health insights
- Better integration with phones and connected devices
IDC also expects white-label smartwatches to gain traction in offline retail through bundle deals.
Broader wearable market trends
The decline in smartwatches has affected the overall wearable device market in India. Shipments fell 6.3% year on year in the first half of 2025 to 51.6 million units. The second quarter alone saw a 9.4% drop to 26.7 million units.
Despite lower shipment volumes, average selling prices across wearables rose 2.2% to $19.2 in Q2 2025, while holding steady at $18.7 for the half-year.
What lies ahead
The smartwatch slowdown highlights the maturing stage of the category. Entry-level models are no longer driving growth, and demand has shifted to consumers who expect quality and innovation.
For brands, the focus will now be on:
- Building value in mid-premium models
- Expanding offline retail channels
- Offering richer health and connectivity features
- Balancing local manufacturing requirements with consumer needs
The coming festive season will be an important test. If brands succeed in repositioning smartwatches as value-driven devices rather than budget accessories, the category could stabilize and return to steady growth in 2026.
