India’s wearable device market loses its shine, festive season offers little hope for recovery

India’s once-booming wearable devices market is hitting a slowdown. According to the latest IDC report, shipments in the segment declined 6.3% year-on-year (YoY) in the first half of 2025 (1H25), slipping to 51.6 million units. The slump continued in the April–June quarter (Q225) with a sharper 9.4% YoY fall, marking the fifth consecutive quarterly decline at 26.7 million units.

While the category had enjoyed a meteoric rise over the past two years, fueled by aggressive pricing, deep online discounts, and pandemic-induced demand, the momentum now appears to be tapering off. The average selling price (ASP) of wearables rose 2.2% YoY to $19.2 in Q2 2025, although it remained largely flat at $18.7 in 1H 2025.

Both smartwatches and earwear, the two largest sub-segments, witnessed a contraction. Yet, market leaders managed to consolidate their positions. boAt increased its share of the overall wearables market from 26.7% to 28.0% YoY, while Noise (Nexxbase) retained its crown in smartwatches with a commanding 30.9% share.

But with the crucial festive season around the corner—a period that typically drives bumper sales—the decline signals a challenging road ahead.

“After two years of explosive adoption-driven growth, consumers are recalibrating—focusing on quality, experience, and longevity over sheer volume,” says Amit Khatri, Co-founder of Noise. “It’s not that demand is disappearing, it’s evolving into a more discerning, value-conscious form.”

The data, however, reflects a sharp correction. Online sales fell 13.8% YoY, while offline retail managed to limit the decline to 1.8% YoY in 1H25. Analysts attribute the slowdown partly to fewer smartwatch launches, as regulatory pressures pushed brands towards local manufacturing while consumer appetite remained subdued. IDC now projects smartwatch shipments to decline in strong double digits for the full-year 2025.

Yet, Khatri remains optimistic. He views the regulatory shifts as a structural positive. “Local manufacturing strengthens quality control, supply resilience, and faster innovation cycles. While the first half of 2025 saw recalibration, it’s a momentary slowdown, not structural,” he says. “Earwear remains a large opportunity, but differentiation is key. We’re doubling down on sound quality, comfort, and enhanced audio experience.”

The long-term story may indeed hold promise, but for now, the numbers underline a cooling market. The festive season—often the make-or-break quarter for consumer electronics—will be the true test. If demand fails to revive meaningfully, India’s wearables market could be staring at its most difficult year yet.