How India Became The World's Largest Smartwatch Market: What's Driving the Growth, and More
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Smartwatches have become popular in the last few years and continue to gain traction. The global smartwatch market is expected to grow from $2 billion in 2016 to $11.3 billion by 2021. This article explores the factors that led India to become the world’s largest smartwatch market and how this acceleration of growth will continue for the rest of the year. Read on to know more about how India became one of the fastest growing markets for smartwatches.
India: A Top Smartwatch-Consuming Market
Smartwatches have become more popular in India in recent years and are quickly becoming the go-to device for consumers. These watches are now being used for multiple daily activities, from managing daily tasks to tracking fitness and health. This growth can be attributed to the rising adoption of technologies and smart devices in the country. According to a recent report, the adoption of smart devices in India has increased significantly in the last few years. The report by CyberMedia Research, Inc. (CMR) indicated that around 58% of the country’s Internet users used a smartphone as of December 2016, placing India at the top among 163 countries surveyed. When it comes to smartwatch usage, CMR also found that 26% of Indian Internet users are actively looking for smartwatches. This indicates that compared to other countries, India is a top smartwatch-consuming market.
Samsung to Drive Growth of Indian Smartwatch Market
Samsung’s recent launch of its Samsung Gear S3 smartwatch in India has been quite successful. The company launched the new smartwatch in the Indian market with an eye on the growing preference for smartwatch usage across various industries. Samsung’s entry into the Indian smartwatch market is creating a massive impact as the company is looking to capture a share of the rapidly growing $2 billion watch market in the country. The Samsung Gear S3 was launched at a price of Rs. 30,990, which is slightly undercutting its competitors like the Apple Watch and the Moto 360 Sport that are available at a price of Rs. 35,000 and Rs. 32,200, respectively. However, with the growing popularity of smartwatches, it is likely that the prices of smartwatches will go up in the near future. With this in mind, it is possible that the Samsung Gear S3 may become a bit expensive for the average Indian consumer.
Apple and Xiaomi to Dominate Apple Watch and Android Wear Platforms, Respectively.
With the launch of the Apple Watch Series 2 and the Apple Watch Series 3 in the Indian market, it became evident that the demand for smartwatches in the country is growing at a rapid pace. The Apple Watch, with its high-end features and design, has been amongst the most popular smartwatches in the country. Apple has been the most successful player in the smartwatch market. Apple currently has a 77% share of the smartwatch market, followed by Xiaomi with a 20% share, according to research firm IDC. As for Android Wear-based devices, Apple has been the most successful player so far. Apple currently has a 93% share of the smartwatch market, while Xiaomi accounts for just a 3% share, according to research firm Canalys.
Overcoming the Challenges of Manufacturing High End Smartwatches.
With the rising demand for smartwatches in the country, watchmakers like Fossil, Zenwatch, and Zenwatch 2 are now looking to enter the Indian market. Zenwatch 2, Zenwatch 2 SE, and Zenwatch 3 are all available for purchase on Amazon India. However, most of these watches are priced above Rs. 6,000, which puts them out of the reach of most consumers. These affordable smartwatches have been designed for the budget-conscious consumers, particularly those looking to buy their first smartwatch. Given the high demand for high-end smartwatches in the country and the challenges of manufacturing them, it will be interesting to see if any affordable smartwatch manufacturers make their entry into the Indian market this year.
Japan: The Future destination for smartwatch growth.
In the last few years, the Japanese smartwatch market has seen phenomenal growth. According to research firm IDC, the Japanese smartwatch market grew from around $514 million in 2015 to $879 million in 2016, which is an impressive growth of 44%. As the Indian smartwatch market is expected to grow at a rapid pace, the Japanese smartwatch market will also see significant growth in the coming years. The Japanese smartwatch market is expected to grow at a CAGR of 52% over the next five years. Given the current popularity of smartwatches in the country, it is expected that the Japanese smartwatch market will also become one of the top smartwatch-consuming markets in the world.
Bottom line
With the rise of wearable technology and the emergence of smartwatches, the demand for these devices has been increasing in India. As the Indian smartwatch market is expected to grow at a rapid pace, it will become one of the top smartwatch-consuming markets in the world.
