China has solidified its position as the world’s largest wrist-worn device market, accounting for a significant share of global shipments. While global smartwatch shipments declined by 2% year-on-year in Q1 2025 (Counterpoint Research), China demonstrated strong resilience, with smartwatch shipments growing 25.3% to 11.4 million units and total wrist-worn devices (including bands) surging 37.6% to 17.6 million units (IDC). This growth highlights unique consumer preferences, government subsidies, and the dominance of domestic brands. For B2B buyers in the watch and clock industry, China’s ecosystem presents prime sourcing opportunities in innovative wearables.
Market Overview: China’s Smartwatch Surge
- Huawei leads the market: In H1 2025, Huawei shipped 12.1 million smartwatches in China, securing a 35.7% market share, driven by the popular Watch GT 5 series (Canalys).
- Xiaomi’s aggressive expansion: Xiaomi achieved strong global performance in wrist-worn devices, with notable contributions from affordable smartwatches and bands in China.
- Kids’ smartwatch boom: Brands like Little Genius (Xiaotiancai/Imoo/XTC) dominate the children’s segment, holding approximately 35–48% share in kids’ smartwatches, thanks to features like location tracking, parental controls, and social engagement tools.
- Government subsidies: Subsidies played a key role in boosting demand, contributing to 17.6 million wrist-worn devices shipped in China in Q1 2025 (+37.6% YoY, IDC).
Demand Drivers in China
- Domestic Innovation: Huawei’s HarmonyOS ecosystem and advanced health monitoring features continue to set new standards for consumers.
- Patriotic Consumer Sentiment: Growing preference for local brands over international competitors like Apple has strengthened Huawei and Xiaomi’s positions.
- Kids’ Segment Growth: Parents increasingly rely on smartwatches for child safety and communication, driving explosive demand in this niche.
- Luxury Integration: Luxury jewelers are blending traditional aesthetics with smart technology, creating hybrid wearables that appeal to fashion-conscious buyers (SCMP reports).
Forecast Outlook (2025–2026)
- China’s smartwatch market showed robust momentum in 2025, with IDC and Counterpoint highlighting continued growth driven by subsidies and innovation.
- The overall China watch market (including smart and traditional) is expected to reach US$30.02 billion by 2033, with smartwatches as a major growth engine (Renub Research).
- Globally, smartwatch shipments are projected to rebound with around 3% growth in 2025 (Counterpoint), largely supported by China’s strong performance and contributions from brands like Huawei.
Sourcing Strategies for B2B Buyers
1.Partner with Leading OEMs
- Collaborate with Huawei and Xiaomi for scalable production and cutting-edge R&D.
- Target niche players like Imoo/Little Genius for high-demand kids’ wearables.
2. Leverage Government Incentives
- Explore subsidies and regional manufacturing hubs to lower costs through policy-supported partnerships.
3. Diversify Product Portfolios
- Offer a mix of premium smartwatches, affordable models, and hybrids that combine classic designs with smart features to target varied segments.
4. Focus on ESG and Sustainability
- Prioritize eco-friendly materials and ESG compliance to meet global buyer expectations.
5. Monitor Tech Trends
- Key differentiators include AI-powered health monitoring, IoT integration, extended battery life, and enhanced child-safety features.
Risks and Challenges
- Global market saturation in mature regions like the US and parts of Asia.
- Potential regulatory changes in trade, data privacy, and cross-border sourcing.
- Intense domestic competition that could impact margins.
Conclusion
China’s smartwatch market remains a powerhouse of growth and innovation in late 2025. For B2B buyers, sourcing from China provides access to competitive pricing, advanced technology, and a thriving supplier ecosystem backed by government support. By partnering with top OEMs, diversifying offerings, and emphasizing sustainability, buyers can effectively capitalize on this dynamic sector.
Disclaimer
This article is for informational purposes only. Market forecasts and sourcing strategies are based on publicly available data and industry reports. Readers should conduct independent due diligence before making business decisions.
