How Is The India Wearable Market Positioned?
The wearable industry in India is at a very nascent stage and has seen an explosion in terms of the sales of these devices. Rising number of smartphone users, increasing internet penetration and rise in the number of technology conscious consumers are the major drivers of growth. A lot of industries such as healthcare and entertainment have found use of this technology with their current products and services. Fitness trackers and smartwatches are very popular today as they have variety of functions and offer features to monitor vitals. As a result, many local and international companies have entered the market. The total wearables sales including wrist worn and wearables for other body parts amounted to INR ~ crores in 2020. The sales of fitness tracker dominated with a category share of ~%.
The market size in terms of volume was analyzed to be ~ million in 2019 and ~million in 2020(Q1), growing at a CAGR of ~%. The industry faced declined from 2020 due to the COVID-19 impact as suppliers faced difficulty in procuring products during the first quarter of the year. In addition to this, most of the fitness centers were closed and people were required to stay at home owing to lockdown restrictions which resulted in limited physical activity. This impacted the sales of smart watches and fitness bands negatively in India. However, the outlook remains positive for the year with demand expected to rise later during the year 2021.
India Wearable Market Segmentation
By Type: Fitness Trackers were identified to be the largest contributor to the industry sales revenue in 2020, as they are relatively cheaper. The adoption of wrist worn fitness trackers are generally increasing due to the plethora of features offered in this product category.
By Type Price Segment: Fitness Trackers within the range of ₹ 1,001- ₹ 10,000 we dominant due to their low price and high number of features along with. A lot of companies have entered this price segment reducing the prices of product in this segment further.
By Region: Southern region witnessed high adoption of wearable devices making it the biggest market in the industry. Also, South India has the highest literacy rate among all other Indian regions are also up to date with the latest technological trends. North and West region also witnessed growth in sales owing to rising demand from young demographic in these regions.
By Type of City: Metro region accounts for the most sales of wearables due to a large segment of technologically aware consumers in the region. In addition to this, the presence of offline and online retail is much higher in metro cities as compared to non-metro cities which positively impacted the sales of wearable in this region.
By Distribution Channels: Increased internet penetration, availability of payment options, and younger demographics are paving way for online sales of wearables in India. In addition to this the discounts offered on e-retail websites attract a lot of millennial.
India Fitness Tracker Market Segmentation
By Type: Wrist-worn fitness trackers maintained their popularity ahead of other wearable devices in 2020 due to their low prices. Moreover, these devices are easy to carry as compared to devices such as heart patches.
By Price Segment: Basic wearables between the price categories of ₹ 1000- ₹ 10,000 dominated the Indian Wearable market in 2020. In addition to the low entry price of basic wearables, consumers are now getting better value from these devices as the category now offers advanced features which were earlier available only in high end devices.
By Region: Southern region witnessed high adoption of fitness trackers making it the biggest market for the Industry. This is majorly due to the presence of major multinational companies (MNCs) in the region which attracts a growing number of the country’s young population to these cities. Young population was more inclined to purchasing Fitness Trackers.
By Type of City: High disposable income, technical literacy and early adoption of innovative technology are high in metro cities. As a result, majority of the revenue in India consumer wearable market is generated from metro cities as of 2020. High-value brands have higher sales in this region as customers are highly brand conscious and prefer quality over price.
By Distribution Channels: The evolving consumer preferences, rise in disposable incomes, and increased usage of Smartphone have caused a growth in sales of wearables, especially via online channel.
India Smartwatch Market Segmentation
By Type: General purpose smartwatch lead the category for smartwatch industry. Hybrid Smartwatch did not capture much market share due to the absence of a touch screen and inability to deliver notifications and other updates to the user. Moreover, their price was same as compared to a smart watch.
By Price Segment: As the awareness for the smart watches are increasing, customers are willing to pay more price for better quality products which have more as compared to a product in a basic price range. High quality smart watches are often priced at 20,000 and above and hence have more market share.
By Region: Southern region witnessed high adoption of Smartwatch making it the biggest market for the Industry. This is majorly due to the fact that most of the tech savvy cities such as Chennai, Hyderabad and Bangalore have presence in the southern region.
By Type of City: Majority of the revenue in India Smartwatch market was contributed by metro cities in 2020. Since the cost of most smart watches is on the higher side of the price spectrum, majority of the sales comes from metro cities as the individuals in the region having high disposable income are more as compared to the individuals in non- metro regions.
By Distribution Channels: Online sales is the most preferred channel for smartwatch distribution as customers buying these product are technically more literate and prefer online channel for buying and comparing products and also to avail promotional discounts offered by the online platforms.
Competition ScenaRio in India Consumer Wearable Market
The wearable industry in India is highly competitive with approximately 15-20 players operating in the space. Both local & multi-national companies are operating in the market and each focuses on technology and product usability as a key parameter to distinguish themselves. The top 5 players namely Apple, Xiaomi, Samsung, Fossil and Titan account for ~% of the market on the basis of sales revenue. Most of the large companies have their production facilities located outside the country & almost every small player imports from neighboring countries.
India Consumer Wearables Market Future Outlook and Projections
The consumer wearables market in India is expected to grow at a CAGR of ~% on the basis of revenue over the forecast period 2020(P)-2025F. The average price of wearables in the country is expected to fall to INR ~ by 2025F. The market is expected to witness growth post COVID-19 in last quarter of 2020(P) and sales are expected to increase throughout the year. Companies are expected to focus on wider distribution network including online marketplaces & e-commerce platforms and invest in research and development to come up with innovative solutions. The forecast period is also expected to witness consolidation by collaboration & partnerships among players.
Key Segments Covered:-
India Consumer Wearables Market
By Type
Fitness Trackers
Smartwatch
By Price Segment
Under ₹1000
₹1000 – ₹10,000
₹10,000 – ₹20,000
Above ₹ 20,000
By Distribution Channel
Online
Offline
By Region
North
East
West
South
By Type of City
Metro
Non-Metro
India Smartwatch Market
By Type
General Purpose Smartwatch
Sports Smartwatch
Hybrid Smartwatch
By Price Segment
Under ₹1000
₹1000 – ₹10,000
₹10,000 – ₹20,000
Above ₹ 20,000
By Distribution Channel
Online
Offline
By Region
North
East
West
South
By Type of City
Metro
Non-Metro
India Fitness Trackers Market:-
By Type of Wearables
Wrist Worn
Others
By Price Segment
Under ₹1000
₹1000 – ₹10,000
₹10,000 – ₹20,000
Above ₹ 20,000
By Distribution Channel
Online
Offline
By Region
North
East
West
South
By Type of City
Metro
Non-Metro
Companies Covered:-
Xiaomi Technologies India Inc.
Goqii Technologies India Inc.
Samsung India Electronics Ltd.
Fitbit India
Apple India
Titan Company India Ltd. (Fastrack)
Fossil India Inc
Key Target Audience:-
Wearables Manufacturing Companies
Wearables Importing Companies
Semiconductor Manufacturing Companies
E-Commerce Companies
Healthcare Associations
Industry Associations
Regulatory Bodies
Time Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period: 2020-2025
For More Information on the research report, refer to below link:-
India Consumer Wearables Market
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
