The wearable technology market in India is undergoing a significant transformation. What once began as a race to the bottom in terms of pricing, functionality, and mass adoption is now taking a turn towards niche, solution-oriented innovation. The Indian wearables ecosystem is expanding its vision, reaching beyond basic step tracking and heart rate monitoring to encompass devices that actively improve lifestyle, mental health, and offer tangible real-world applications. From anxiety-reducing ear devices to AI-powered conversation pendants, a new era of premium and purpose-driven wearables is emerging.
A Market in Flux
The Indian wearables market, which was once growing at a breakneck pace, is now slowing down. After several years of explosive growth fueled by post-pandemic fitness awareness and a price-driven consumer base, 2024 marked the first-ever shipment decline in the wearables sector in India. According to IDC, the market saw an 11.3% year-on-year de-growth, with overall shipments dropping to 119 million units. This decline was largely attributed to a 34% drop in smartwatch shipments and a similar slowdown in fitbands and pedometers.
The reasons behind this decline are multifaceted. The core functions of a smartwatch—step tracking, heart rate monitoring, SpO2 tracking—are now available across smartphones, fitness apps, and even entry-level smart bands. Moreover, most smartwatches have failed to innovate meaningfully. Consumers have no compelling reason to upgrade when the difference between models priced at Rs 2,000 and Rs 3,000 is hardly distinguishable.
“Wearables are now nebulous as a category. Today, it is simply a functionality packaged into smart electronics. Tomorrow, it may take another form altogether, such as a chip embedded or pasted somewhere, moving away from smartwatches into something else,” explains Ankur Bisen, Senior Partner at Technopak Advisors. The implication is clear: the wearables segment must reinvent itself or risk stagnation.
The Rise of Purpose-Driven Wearables
As the traditional smartwatch market stagnates, a new subcategory of wearables is taking center stage. These are purpose-driven devices, built not just to track, but to intervene and solve real problems. This trend is being led by startups such as InnerGize, NeoSapien, and 7 Ring, among others.
InnerGize, a mental health-tech startup, has developed a wearable device that sits behind the ear and stimulates the vagus nerve using gentle electrical signals. This stimulation has been shown to help reduce stress and anxiety. The company recently raised Rs 6.5 crore in a round led by Antler, with participation from Arjun Vaidya, Ritesh Agarwal, and government-backed funds.
“Today’s wearables have moved beyond monitoring and now essay an interventional role. To justify the tag of a health product, a wearable’s minimum viable outcome should be its ability to positively impact the wearer’s health,” says Siddhant Bhargava, CEO of InnerGize.
NeoSapien, another innovative startup, offers an AI-powered pendant that can record and summarize conversations. Ideal for meetings, personal reflections, or even interviews, this pendant acts like a real-time notetaker. The brand recently raised Rs 80 lakh on Shark Tank India, validating investor interest in wearables that deliver more than just fitness metrics.
7 Ring, meanwhile, is revolutionizing the payments space with a sleek, tap-enabled ring linked to a digital prepaid wallet. It allows users to make contactless payments, eliminating the need for a smartphone or card swipe. The brand has already raised Rs 2.24 crore and is priced at around Rs 7,000.
The Investment Landscape
The new wave of wearables has attracted both investor and consumer attention. Notably, Ultrahuman, a premium wearables startup backed by Nexus Ventures, is reportedly close to raising $120 million from Westbridge Capital and other investors. Known for its glucose monitoring and health-tracking products, Ultrahuman represents the segment of wearables that are moving beyond utility into high-end, lifestyle-focused health solutions.
Unlike their predecessors, which depended heavily on white-label manufacturing and volume sales at rock-bottom prices, this new class of wearable startups is focused on R&D, differentiation, and brand value. Devices like NeoSapien and InnerGize are priced between Rs 7,000 and Rs 12,400, while Ultrahuman’s AIR ring retails upwards of Rs 28,000 with an additional annual subscription cost.
This premiumization is indicative of a shift in consumer behavior. Indian consumers, especially in urban centers, are becoming more willing to pay a premium for functionality, innovation, and aesthetics.
Challenges in a Price-Sensitive Market
Despite the enthusiasm and innovation, the wearables market in India still operates under the shadow of intense price sensitivity. During the smartwatch boom, companies lured consumers with aggressive pricing, often selling products at or below cost. Brands like Boat, Fire-Boltt, and Noise flooded the market with products under Rs 2,000, setting a consumer benchmark that is hard to break.
“Once you’ve bought a good smartwatch at Rs 1,100 or Rs 999, it’s tough to push prices back up. So, the price expectation gets set,” explains Paras Batra, founder of Leaf Studios.
Most Indian wearable brands do not manufacture their own devices. Instead, they rely on Chinese OEMs, making them vulnerable to pricing shifts and supply chain disruptions. As a result, margins are razor-thin, and competition is cutthroat.
Siddhant Bhargava notes, “Most wearable companies do not make their own devices. And because of that, their pricing is completely reliant on the prices offered to them by Chinese manufacturers.”
Toward a Sustainable Future
The future of wearables lies not just in affordability, but in utility and experience. Brands that manage to bridge the gap between innovation and relevance will succeed. This includes offering devices that are:
- Solution-Oriented: Devices that solve real-world problems, such as stress, memory, or payments.
- Premium by Design: Built with high-quality materials, better sensors, and compelling user experiences.
- Integrated with AI: Allowing devices to learn, personalize, and adapt to the user.
- Multi-Functional: Offering more than one use-case—e.g., health plus productivity or payments plus tracking.
According to Varun Gupta, Co-founder of Boult, “People first bought smartwatches for style or fitness, but many didn’t end up using them as expected. Now, buying decisions have moved from impulse to utility. As AI integrates with advanced health features, the category is moving beyond just steps and heart rate.”
NeoSapien’s co-founder Dhananjay Yadav is confident that innovation will win over price sensitivity. “In the premium segment of wearables, brand value and R&D matter far more than price. Players like Ultrahuman have increased prices to Rs 28,000 and still managed to maintain their position as market leaders.”
Reinventing Wearables for the Next Decade
India’s wearables industry is at a critical inflection point. The era of mass-market smartwatches is winding down, making way for a more focused, meaningful wearable experience. Startups are no longer chasing volume alone; they are engineering purpose. The devices of tomorrow are already here—tucked behind the ear, worn as a pendant, or wrapped around a finger—and they promise to enhance, intervene, and empower.
As wearables grow up, Indian consumers and investors alike are beginning to value innovation over imitation, experience over expense, and utility over ubiquity. The next chapter of India’s wearables story isn’t just about how many devices are sold, but how many lives they can truly improve.
