The global smartwatch market saw sizable growth in 2022, research firm Counterpoint reports. Despite a two percent YoY (year-on-year) drop in shipments in the year-ending quarter, overall shipments for the year grew by 12 percent. Premium and entry-level devices were in higher demand than mid-range products.
According to Counterpoint’s report, the marginal decline in smartwatch shipments in Q4 2022 was the first quarterly YoY drop after seven consecutive quarters of growth since the beginning of 2021 when the market started to recover from the coronavirus pandemic. The firm attributes this decline to the ongoing economic downturn and a slowdown in India. Sales dropped 36 percent QoQ (quarter-on-quarter) in the country in the final three months of the year.
However, India remained the fastest-growing smartwatch market in 2022. For the full year, sales grew a staggering 151 percent YoY in the country, accounting for 21 percent of the global market. That share was just nine percent in 2021, so India’s smartwatch market more than doubled last year. It is closing the gap with North America, which is still the single biggest regional smartwatch market in the world with a share of 29 percent.
But North America saw a relatively small six percent YoY growth in shipments in 2022. As such, its overall share in the global market remained flat or even declined marginally from 30 percent in 2021. China, meanwhile, dropped to the third spot behind India with a 19 percent share in the global smartwatch market last year. That’s a notable decline from 23 percent in the year before. Shipments declined a strong nine percent in the country in 2022. The country’s COVID-zero policy, which wasn’t eased until the final quarter, caused this slowdown.
Apple led the global smartwatch market in 2022
Apple has been the world’s largest smartwatch vendor for the past few years and it retained the crown in 2022. Its shipments grew 17 percent YoY, which is higher than the global average (12 percent). The company captured more than one-third (34.1 percent) of the global market, an increase from 32.6 percent in 2021. It helped the premium segment (priced more than $400) grow a staggering 129 percent last year.
Samsung, meanwhile, remained flat with no growth in global share. Its Galaxy Watch shipments also only grew at the same rate as the global average. China’s Huawei remained at the third spot but is declining. That isn’t surprising since the company primarily plays in the domestic market, which saw a notable decline. Other Chinese brands also suffered because of this. Imoo and Amazfit, which were in the top five in 2021, dropped down the order. The latter was the seventh biggest smartwatch brand last year, while the former entirely disappeared from Counterpoint’s chart.
The Chinese slowdown paved way for Indian brands Noise and Fire Boltt. Neither company was in the top five in 2021 but broke into it last year. They make affordable smartwatches and were pivotal to market growth in India. These two brands helped the sub-$100 segment grow 34 percent globally last year. They are threatening to displace Huawei from the third spot soon. Fitbit and Xiaomi also fell off Counterpoint’s chart in 2022, while another Indian brand Boat climbed up to the eighth spot.
2023-02-24 15:06:08