Global Smartwatch Market Saw Record Growth In 2021, Apple Retains Lead

The global smartwatch market shipments recorded a healthy 24% year-on-year (YoY) growth in 2021 thanks to strong demand for sub-$100 smartwatches, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker.

One of the driving forces behind the growth of the global smartwatch market in 2021 was the expansion of the Indian market as it raised its global market share to nearly 10% against 3% in 2020.

The fourth quarter alone saw shipments of more than 40 million units, the highest quarterly shipments ever.

Noise remained the fastest-growing brand among the global top 9 brands, leading the growth of the Indian smartwatch market. Noise continue to be India’s No. 1 brand in 2021 for a second consecutive year.

India’s smartwatch market witnessed a 274 per cent growth in 2021, with Noise leading the market with 27 per cent share, followed by boAt with a 26 per cent share, a research by Counterpoint said earlier this year.

“Noise leads the growth of the local market with diverse product portfolio targeting the budget and mid segments, as well as strong partnerships with e-commerce players, financial institutions and celebrities," according to analyst Anshika Jain.

"Noise also focused on community building and slightly shifted its price base towards the lower side to make its smartwatches accessible to a larger group of people, a strategy that proved to be effective. All this resulted in Noise ranking third in terms of shipments after Apple and Samsung in the APAC region except China in 2021,” she added.

Apple maintained the top position in global shipments with a 30 per cent market share but fell 3 per cent points YoY due to intensified competition.

However, its ASP rose 3% without the release of the SE model in 2021. As a result, Apple accounted for half of the total market revenue, the report said.

Besides Apple, Samsung was one of the most successful smartwatch makers in 2021. Its QoQ growth was more than 200% in the third quarter to record the brand’s best shipments ever.

On the other hand, Amazfit (20 per cent), Garmin (35 per cent), and Xiaomi were among the major brands that showed strong performance in 2021.

Fitbit, however, showed weak performance in 2021 as it slid more than 15% YoY while Huawei's shipments are also likely to decline, the report said.