Chinese brands lose ground as Indian rivals surge in TWS audio market; smartwatch market set for continued decline

TWS

Chinese brands like Oppo and Realme are losing their grip on India’s earwear market, with TWS (True Wireless Stereo) shipments from both declining in the first two months of 2025—even as overall market volumes grew 9.9% year-on-year to 12 million units, driven by aggressive pricing, affordable ANC models, and heightened brand activity.

Indian brands seized the momentum: Boult and Noise, ranked second and third in the TWS market, saw their shipments surge 44% and 14% respectively, while market leader boAt posted modest growth of 1.6%, according to data from market tracker IDC.

The January-March quarter is projected to see 10–12% year-on-year growth in TWS shipments.
In contrast, India’s smartwatch segment continues its downward spiral. The category declined for the 14th straight month, with shipments down 24.4% year-on-year. IDC expects another 25% drop in Q1 2025, attributing the slump to innovation fatigue and softening consumer demand.

“India’s wearable market has been navigating a phase of decline since early 2024. The smartwatch category is stagnating, showing signs of market saturation and innovation fatigue. Brands that once aggressively chased smartwatch sales are now recalibrating their inventory strategies, recognising the slowdown,” Vikas Sharma, Lead Analyst Wearables, IDC India, told Moneycontrol.

There’s a noticeable pivot in focus away from smartwatches toward the more dynamic earwear category, which is demonstrating resilience and agility in adapting to consumer needs, Sharma added.

In the first two months of 2025, the Average Selling Price (ASP) for smartwatches increased by 15%, from $20 to $23, while shipments declined by 24%, resulting in tapered consumer demand, according to IDC data.

“The category appears to be inching towards maturity, where consumer enthusiasm is dampened by a lack of compelling innovations and a failure to offer clear product-market fit beyond basic fitness tracking, notification management and BT calling facility,” Sharma added.

In contrast, the earwear segment, particularly TWS, continues to grow, driven primarily by affordability, particular use case and timely innovation.

“TWS has transitioned from being just an audio accessory to an everyday necessity. ASPs for TWS devices have decreased by 13%, dropping from $17 to $15 which had helped brands penetrate deeper into mass markets. This democratization of technology is being fuelled not just by price, but by feature-rich offerings at unprecedented value,” Sharma added.