Global Smartwatch Market Sees First-Ever Decline in 2024, Reveals Counterpoint Research

Highlights

• The global smartwatch market saw a 7% decline in 2024.
• Apple hit with a 19% drop despite remaining the market leader.
• Huawei climbed to second place with a 35% increase in shipments.
• China became the world’s largest smartwatch market for the first time with leading brands Huawei, Imoo and Xiaomi driving growth.

Caption – Apple saw a significant 19% dip in Smartwatch shipments. (Image credit – Apple)

The global smartwatch market saw a decline in 2024 for the first time ever, with shipments dropping by 7% compared to the previous year. The data points were revealed in a recent Counterpoint Research report titled “Global Smartwatch Shipments in 2024: Market Declines for First Time, China Leads for First Time.”

According to the report, Apple saw a significant 19% dip in shipments despite holding onto the top spot. However, Huawei climbed to second place with a 35% increase, driven by strong demand in China and a diverse lineup that includes everything from basic wearables to kids’ smartwatches and high-end models.

Commenting on Apple’s performance, Senior Research Analyst Anshika Jain said, “Apple Watch witnessed a decline in momentum on its 10th anniversary, despite the launch of the S10 series. The biggest driver of the decline was North America, where the absence of the Ultra 3 and minimal feature upgrades in the S10 lineup led consumers to hold back purchases. Additionally, patent disputes limited shipments in the first half of the year. The slowdown of the existing Apple Watch SE lineup and the lack of new SE models also contributed to the decline.”

“In terms of regions, China, for the first time, recorded the highest ever shipments, surpassing NAM and India in 2024. Huawei, Imoo and Xiaomi were the front runners of the China market. Their diverse portfolios, ranging from basic, advanced to kids’ smartwatches, along with the Chinese consumer’s inclination towards these brands drove the overall adoption,” Jain added.

Samsung secured third place with a modest 3% rise in shipments, thanks to the success of its Galaxy Watch7 and Galaxy Watch Ultra series. Xiaomi had an impressive year, with shipments skyrocketing by 135%.

Commenting on the different smartwatch segments, Research Analyst Balbir Singh said, “Only the kids’ smartwatch segment witnessed growth with Imoo remaining the market leader driven by its affordable, feature-rich offerings. The kids’ smartwatch segment is gaining traction as parents are concerned for their children’s safety, and they desire to track and stay constantly connected with their children. With the decline of basic smartwatches, other brands such as Noise, boAt and Google’s Fitbit have started diversifying their portfolio to include kids’ smartwatches. This is a good sign for the market’s diversification and indicates further growth in the future.”

Commenting on the global smartwatch market outlook, Associate Director David Naranjo said, “The smartwatch market is expected to recover slowly and witness single-digit percentage growth in 2025. Both Android and iOS smartwatches are expected to integrate more AI capabilities and advanced sensors to provide deeper insights into health data. For advanced sensors, smartwatches are expected to incorporate sensors for measuring bodily signals such as serious heart health tracking, focusing on atrial fibrillation, sleep apnea, hypertension and diabetes. Brands will emphasize on getting regulatory approvals for their new smartwatch models and incorporating new health features to sustain their position in the market.”

The primary reason for the overall market decline was a slowdown in India. Consumer demand weakened due to a slow replacement cycle, lack of innovation and underwhelming experiences for first-time smartwatch buyers.

On the other hand, China became the world’s largest smartwatch market for the first time, growing by 6% year-over-year and reaching its highest-ever shipment numbers. Leading brands in China included Huawei, Imoo (formerly BKK) and Xiaomi.

Looking ahead, the market is expected to gradually recover in 2025, driven by advancements in AI and improved health monitoring features in upcoming smartwatches.

FAQs

Q1. What was the overall trend in the global smartwatch market in 2024?

Answer. The global smartwatch market saw a decline in 2024 for the first time ever, with shipments dropping by 7% compared to the previous year.

Q2. Which company experienced the highest growth in smartwatch shipments in 2024?

Answer. Huawei climbed to second place with a 35% increase in shipments, driven by strong demand in China and a diverse lineup that includes everything from basic wearables to kids’ smartwatches and high-end models.

Q3. What is the expected trend for the global smartwatch market in 2025?

Answer. The smartwatch market is expected to recover slowly and witness single-digit percentage growth in 2025, with both Android and iOS smartwatches expected to integrate more AI capabilities and advanced sensors for health monitoring.

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