The global smartwatch market witnessed its first-ever decline in 2024, with shipments falling by 7% year-on-year (YoY), according to Counterpoint Research. The decline was largely attributed to reduced shipments from Apple, the industry leader, as well as slower upgrades in the budget smartwatch segment. Despite the downturn, Apple continued to dominate the market, while brands like Huawei, Samsung, and Xiaomi showed notable growth.

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Apple Leads the Smartwatch Market Despite Declining Shipments

Apple maintained its top position in the global smartwatch market in 2024, securing a 22% market share. However, the company’s total smartwatch shipments saw a 19% decline compared to 2023.

The slowdown in Apple’s shipments was largely due to:

The absence of the Apple Watch Ultra 3, which limited premium segment growth.

Minimal upgrades in the Apple Watch Series 10 lineup, leading to weak consumer demand.

Patent disputes affecting shipments in the first half of the year.

A slowdown in Apple Watch SE sales and the lack of a new budget-friendly SE model.

Apple’s struggles were particularly evident in North America, where consumers refrained from purchasing due to limited feature enhancements in new models.

Huawei and Samsung Show Growth Amid Market Decline

Despite the overall market downturn, Huawei emerged as the second-largest smartwatch brand globally, increasing its market share from 9% in 2023 to 13% in 2024. The brand recorded a 35% YoY growth in shipments, driven by strong demand in China.

Meanwhile, Samsung maintained its third-place position, with its market share rising from 8% to 9% in 2024. The company’s smartwatch shipments grew by 3% YoY, fueled by strong sales of its newly launched Galaxy Watch 7, Galaxy Watch Ultra, and Galaxy Watch FE series.

Xiaomi’s Impressive Growth in 2024

Xiaomi saw the highest growth rate in the global smartwatch market, recording an impressive 135% YoY increase in shipments. The company expanded its smartwatch portfolio, with its Watch S1 and Redmi Watch series driving strong adoption. Xiaomi also gained traction in China, helping the brand solidify its fourth-place ranking in the global market.

India’s Smartwatch Market Faces Decline

India, which had been a key growth driver in the smartwatch segment in previous years, saw a 7% decline in shipments in 2024. The market share of smartwatches in India fell from 30% in 2023 to 23% in 2024, primarily due to:

A slow replacement cycle among consumers.

Lack of significant innovation in budget smartwatches.

Unsatisfactory user experiences among first-time buyers.

With India accounting for a large portion of global smartwatch sales, this decline significantly impacted the overall market performance.

China Emerges as the Top Smartwatch Market

For the first time, China surpassed North America and India in smartwatch shipments. The Chinese market saw an increase in shipments from 19% in 2023 to 25% in 2024, driven by:

Strong sales of Huawei, Imoo, and Xiaomi smartwatches.

High adoption of kids’ smartwatches, which continue to grow in popularity among parents.

Kids’ Smartwatch Segment Gains Traction

Unlike basic and advanced smartwatches, the kids’ smartwatch segment was the only category to witness growth in 2024. Brands like Imoo remained market leaders, offering affordable and feature-rich smartwatches tailored to children’s safety and connectivity.

Additionally, brands like Noise, boAt, and Google’s Fitbit have started expanding their smartwatch portfolios to include kids’ smartwatches, indicating a potential shift in market trends.

Future Outlook: AI and Health Features to Drive Growth

Despite the 2024 decline, experts predict a slow recovery for the global smartwatch market, with a single-digit percentage growth expected in 2025.

AI integration will become a major focus, enhancing smartwatch capabilities for health tracking and personalized user experiences.

Advanced health sensors will be incorporated to monitor conditions like sleep apnea, hypertension, atrial fibrillation, and diabetes.

Regulatory approvals for new health features will be a key area of emphasis for smartwatch brands.

Conclusion

The smartwatch market faced its first-ever decline in 2024, largely due to Apple’s reduced shipments and slowing demand for budget smartwatches. However, brands like Huawei, Samsung, and Xiaomi managed to grow, while China emerged as the largest smartwatch market. Moving forward, AI integration and advanced health tracking features are expected to drive the market’s recovery in 2025.