• China led the global kids smartwatch market with a 64% share, a drop from 72% in Q2 2023.
• North America’s shipments grew 1.5x owing to Fitbit’s launch and expansion by operators and other brands.
• Imoo led the segment globally with a 48% share, driven by a strong presence in China and Asia-Pacific.
• The kids smartwatch segment is expected to outperform the broader market in 2024 with 7% growth, compared to the overall market’s decline of 4%.

Global kids smartwatch shipments grew 4% YoY in Q2 2024, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. Across all major smartwatch types*, only the kids segment showed positive YoY growth during the quarter.

Kids smartwatches have been available for some time, but it is only recently that they have gained wider acceptance among consumers. As adults have embraced smartwatches and seen their benefits, many now want to offer similar advantages to their children. This trend is ultimately convincing many parents to delay the first smartphone purchase for their children to keep them away from the harmful effects of social media in their early stages of growth.

Kids smartwatches are also a great option for parents who want to stay connected with their children while ensuring their safety. These devices offer features like GPS tracking and calling and texting with pre-approved contacts. This helps parents keep in touch with their children without giving them full access to the internet. Besides, many smartwatches include fun and educational games that encourage kids to stay active and monitor their health.

In terms of regions, China continued to lead the kids smartwatch market in Q2 2024, holding a 64% share, thanks to strong distribution channels and numerous local brands. Other regions, such as North America and Asia-Pacific, are also seeing increased interest. The North American market grew over 1.5x driven by Fitbit’s entry with the Ace LTE for Kids, developed in partnership with Qualcomm. In the US, operators including Verizon, T-Mobile and AT&T are expanding their offerings with children-friendly smartwatches. Verizon launched the Gizmo Watch 3 in Q1 2024, while T-Mobile and AT&T introduced the SyncUP KIDS Watch 2 and AT&T amiGO Jr. Watch respectively in H2 2024. These devices are designed to be worn in schools without causing any distraction.

In India, brands are diversifying their smartwatch portfolios to attract new customer segments as the basic smartwatch category approaches saturation. New smartwatch models are being introduced with specific users in mind, such as a ruggedized device for sports activities (like the Noisefit Force), a full-fledged Android-based smartwatch with camera and the ability to install third-party apps (like the Fireboltt Snapp) and new options for children such as the Imoo Z7 and boAt Wanderer. Even Apple is repositioning its smartwatches to target the kids segment in India with colorful models, new watch faces, and independent LTE connectivity.

In the global kids smartwatch market, the top three brands held a combined 62% share in Q2 2024, a YoY decline due to the rise of many smaller brands. BBK (Imoo) led with a 48% share, followed by Huawei and Xiaomi. Imoo saw double-digit growth by expanding its portfolio in the $100-$200 price range and focusing on regions like the Asia-Pacific, in addition to its strong presence in China. Meanwhile, Huawei’s kids smartwatch shipments declined YoY as other brands strengthened their presence in the advanced smartwatch category. In terms of price bands, the $100-$200 price band grew over 1.5x due to increasing popularity in China and North America.

According to Counterpoint’s latest global smartwatch market forecast, the kids smartwatch segment is expected to grow by over 7% this year, compared to the overall market’s decline of 4%. This growth in the kids segment will be driven by the strong performance of Chinese brands and the North American market’s growth, particularly with Fitbit’s entry and new models from US operators and local players. Besides, Indian brands are diversifying their portfolios to attract new customer segments.

Source: Counterpoint Research

We believe that the kids smartwatch market is still untapped. As the use cases evolve, more opportunities will come up for other OEMs to enter this market with new models. A few of the most popular features in this segment include cellular connectivity, GPS support, camera, and educational and gaming apps. In terms of applications, security, emergency communication, and the compact form factor (which might serve as a substitute for smartphones for kids) will drive future growth. Payment is another area that brands can target to help parents foster healthy money-spending habits in their children. For instance, Google Pay recently partnered with GoHenry and Greenlight to have tap-and-pay features in next-generation Fitbit smartwatches.

*Types of smartwatches:

Advanced or HLOS smartwatch: Electronic watch running a high-level OS, such as Watch OS (Apple) and Wear OS (Samsung), with the ability to install third-party apps.

Basic smartwatch: Electronic watch running a lighter version of an OS, with no ability to install third-party apps.

Kids smartwatch: Electronic watch capable of either linking to a partner smartphone or independently accessing the internet over LAN, WAN or cellular connectivity, and designed to meet the needs and requirements of children, such as location tracking, health monitoring, voice or video communication, and gaming.