Counterpoint Research: Global children's smartwatch shipments increased by 4% year-on-year in the second quarter, and is expected to grow by over 7% this year.

According to Counterpoint Research's latest global smartwatch model tracking report, the shipment volume of children's smartwatches increased by 4% year-on-year in the second quarter of 2024. Among all major smartwatch types, only the children's smartwatch market achieved year-on-year positive growth in that quarter. In terms of regions, China continues to lead the children's smartwatch market in the second quarter of 2024, occupying 64% of the market share, thanks to strong distribution channels and numerous local brands. Other regions such as North America and Asia-Pacific are also showing increasing interest. The North American market grew by over 1.5 times with the introduction of Ace LTE for Kids developed by Fitbit in collaboration with Qualcomm. In the United States, carriers including Verizon, T-Mobile, and AT&T are expanding their supply of child-friendly smartwatches. Verizon launched Gizmo Watch 3 in the first quarter of 2024, while T-Mobile and AT&T respectively introduced SyncUP KIDS Watch 2 and AT&T amiGO Jr. Watch in the second half of 2024. These devices are designed to be worn at school without causing any distractions. In India, as the basic smartwatch category approaches saturation, brands are diversifying their smartwatch product portfolios to attract new customer segments. They are introducing new smartwatch models tailored for specific users, such as rugged devices for sports activities (like Noisefit Force), full-feature Android smartwatches with cameras and third-party app installation capabilities (like Fireboltt Snapp), and new options for children such as Imoo Z7 and boAt Wanderer. Even Apple is repositioning its smartwatches in India, launching colorful models, new watch faces, and standalone LTE connectivity targeting the children's segment. In the global children's smartwatch market, the top three brands accounted for a total of 62% market share in the second quarter of 2024, a year-on-year decrease, due to the rise of many smaller brands. BBK (Imoo) led with a market share of 48%, followed by Huawei and Xiaomi (01810). Imoo achieved double-digit growth by expanding its product portfolio in the $100-200 price range and targeting the Asia-Pacific region (in addition to its strong performance in the Chinese market). Meanwhile, Huawei's shipments of children's smartwatches decreased year-on-year as other brands strengthened their position in the premium smartwatch category. The $100-200 price range of watches grew by more than 1.5 times, due to increasing popularity in China and North America. According to Counterpoint's latest global smartwatch market forecast, the children's smartwatch market is expected to grow by over 7% this year, while the overall market is projected to decline by 4%. The growth of the children's smartwatch market will be driven by the strong performance of Chinese brands and growth in the North American market, especially with the entry of Fitbit and new models from American carriers and local manufacturers. In addition, Indian brands are also diversifying their product portfolios to attract new customer segments. The children's smartwatch market still has room for development. As practical use cases continue to expand, other original equipment manufacturers will have the opportunity to enter the market with new products. Some of the most popular features in this field include cellular network connectivity, GPS support, cameras, and educational and gaming applications. In terms of applications, security, emergency communication, and compact form factors (possibly as alternatives to children's smartphones) will drive future growth. Payment is another area for brand development to help parents instill healthy spending habits in children. For example, Google Pay recently partnered with GoHenry and Greenlight to add tap-to-pay functionality in the next generation of Fitbit smartwatches.