The smartwatch market in 2025 is no longer driven only by style or simple step tracking. Buyers expect more, and GPS has quickly shifted from being a premium feature to a core selling point. Global rise in interest in climbing, and fitness, outdoor, and safety applications are pushing GPS to the center of purchasing decisions. For distributors, ecommerce sellers, and sourcing companies, this shift raises a critical question. Is GPS just another add-on, or is it now essential to compete?
The answer matters for your bottom line. Smartwatch shipments are holding steady, but the products that win customer trust are those that reduce reliance on smartphones, offer accurate tracking, and provide clear safety benefits. Ignoring GPS can limit your market reach and leave you with stock that feels outdated. On the other hand, positioning GPS correctly in your product portfolio opens new revenue channels and helps build brand credibility.
In this article, we will examine whether GPS is still a premium feature or a must-have, the advantages for distributors and retailers, the risks of leaving it out, and how the right OEM or ODM partner can help you deliver GPS-enabled watches that sell.
Are GPS Features Still a Premium Add-On in Smartwatches?
The short answer is yes. So, here’s the longer answer. GPS in smartwatches is a big deal, and it’s here to stay. Some years back, it was considered by most distributors and retailers as a nice-to-have feature that was relevant enough to justify a higher price tag. Well, things are very different today.
Smartwatch shipments are expected to grow around 2.5 percent in 2025, signaling a stable but mature market. Meanwhile, more smartwatches now include built-in connectivity, with 75 percent of units sold in 2025 being LTE-enabled, which strongly pairs with GPS functionality.
This shows consumers want devices that work independently of a phone. It has evolved from being just a premium feature but one that is in high demand. Distributors who ignore that trend may find their inventory less appealing, especially for active urban users or wellness markets. For those sourcing or white-labeling devices, this shift means GPS is no longer optional. Not offering it may cost you sales, shelf space, or renewal orders. But offering GPS wristwear can position your brand as modern, fitness-friendly, and customer-focused.
We have moved on from talking about whether to offer GPS. Your focus should be on how to do it efficiently, and that’s where the right OEM/ODM partner makes all the difference.
What Do Distributors and Retailers Gain by Offering GPS Watches?
Experts predict the global market will hit USD 108 billion this year, up from USD 93 billion in 2024, marking a strong growth rate of 16.1 percent. That shows the opportunity for sellers is expanding quickly.
GPS capability adds even more appeal. The specific GPS watch tracker segment is valued at about USD 1.9 billion in 2023 and is expected to more than double to USD 4.5 billion by 2032. That means average annual growth near 10.2 percent.
This kind of growth signals clear advantages for your business. First, GPS allows you to charge higher prices. Buyers see value in location services, activity tracking, and independence from phones. Second, GPS broadens your buyer base. Off the top of your head, you can think about how much adventurers prioritize this feature. This means that they can go hiking or engage in activities that require moving far away from urban areas without worrying about how they would find their way back to civilization. Finally, launching GPS models helps your brand stand out. While competitors may offer basic wristbands or timers, you deliver trusted navigation and performance.
Ultimately, offering GPS smartwatches gives your business more room to grow. You reach new market segments, command better pricing, and align with buyer expectations. However, to execute successfully, you need an OEM/ODM partner that can integrate GPS chips, ensure accuracy, and deliver quality GPS alongside your brand. That is where choosing the right manufacturing partner matters most.
5 Ways GPS Makes Smartwatches a Key Selling Point in 2025
- True independence from phones
Customers want a watch that works when the phone stays at home. GPS is the core feature that makes this possible because it gives reliable location, route recording, pace, distance, and safety visibility on the wrist. For your buyers, that promise is simple to sell. The watch tracks every run or commute, finds the way back on a trail, and logs the workout without any phone in the pocket. In crowded urban areas, phone-free movement also feels safer and lighter.
The best way to draw attention to your smartwatches is to offer undeniable value. Although global smartwatch shipments dipped a bit in early 2025, this is your chance to convert fence sitters using top-notch GPS capabilities. It creates a clear step up from basic trackers without forcing a leap into ultra-premium pricing.
For OEM and ODM customers, you can make users less reliant on their phones through smart integration choices. That includes efficient GPS chipsets and firmware that balances signal lock with battery life. It also contains bands and casings that keep GNSS reception clean. When your manufacturing partner gets these details right, you can build trust in your brand. The buyer experiences accurate tracking and a full day of use. That is what turns first purchases into repeat orders.
- Highly accurate location tracking
Who doesn’t love the opportunity to wear a smartwatch with highly accurate location tracking? Accuracy sells trust. Runners, cyclists, delivery riders, and hikers all compare distance and pace between devices. If your GPS watch draws a cleaner route under trees or among tall buildings, customers notice and talk about it. Precision comes from multiband and multisystem GNSS support, careful antenna placement, and firmware that filters noisy signals.
Accuracy also expands the set of customers who will pay a little more. Outdoor users expect breadcrumb trails, back-to-start guidance, and a stable pace. City users want clean routes in urban areas. Families want location checks that they can trust. Positioning your model as accurate in demanding conditions helps you justify a higher average selling price.
Accurate GPS is an easy message to grasp in five seconds. It is also a feature that leads to stickier daily use, since people open the app to check routes and stats after every activity. That habit is your repeat business engine. Add one clear proof point in your spec sheet and sales page, and tie it to a real use case such as trail running or city commuting. Support the claim with test routes and user stories.
- Appeal to an expanding outdoor audience
Outdoor activity continues to draw steady interest. As more and more people are falling in love with hiking and the great outdoors, this means that demand for GPS watches will continue to grow. In a split second, casual hikers evolve into weekly trail crawlers and now need a device to log their routes while mapping their movements. Stocking GPS models solves a real problem. They can follow a planned path, check the distance to a waypoint, and get back to the trailhead without stress.
E-commerce sellers can run content that compares trail features across two price tiers to help shoppers pick with confidence. Sourcing firms can request rugged casings, better waterproofing, glove-friendly buttons, and sunlight-readable screens from the OEM. These options support real outdoor tasks.
Wearables in general are expected to stabilize and recover through 2025. That suggests a path for growth if the product is framed as outdoor gear rather than only a fitness gadget.
- Stronger value in health and safety use cases
GPS is also great for promoting safety. Parents want live location checks and geofencing alerts for kids on the walk to school. Caregivers want simple fall alerts and location sharing for seniors. Field teams and event staff need quick location pings during shifts. Positioning a GPS watch as both a safety tool and a health tracker opens multiple sales lanes with a single SKU. That makes inventory planning easier for distributors.
The kids’ segment is a special highlight. Over time, smartwatches for kids have grown in popularity as the broader market has softened. People are willing to buy when a watch makes family logistics easier and safer. For product sourcing teams, this is a chance to request features such as SOS buttons, approved contact lists, and school time modes that mute distractions while tracking still runs in the background.
Clear onboarding, clean app flows, and reliable alerts build trust and reduce returns. If your OEM and ODM partner can pre-certify regional compliance and deliver stable firmware, you avoid launch delays and support headaches. That reliability matters when selling into schools or caregiver programs. Pair the safety message with real examples and very short setup guides in packaging and on the product page.
- Premium positioning without premium cost
GPS lets you market a watch as advanced without drifting into price points that slow turnover. Many buyers want a better feature set but will not pay true flagship prices. A well-built GPS model can sit in the middle and still feel premium in hand. The map screen, the saved routes, and the post-workout stats all create a sense of value that lasts beyond the first week. That reduces returns and boosts word of mouth for your channels.
You can design a laddered lineup that starts with a clean GPS core model and steps up to longer battery life, outdoor maps, and stronger water protection. This gives retailers clear reasons to upsell while keeping the entry model attractive. Customer satisfaction scores for the category show that there is room to win on perceived quality. Brands with smooth performance and reliable features earn higher marks, which helps repeat sales when refresh cycles return.
GPS is a function that shoppers understand in one second. It answers the question of why this watch is worth more than a basic band. Build your message around that point, keep the spec sheet honest, and ship firmware that feels finished. That is how you hold price and still move volume at launch.
What Are the Risks of Ignoring GPS in Your Smartwatch Portfolio?
The biggest risk of ignoring GPS is losing relevance. It’s 2025, and every buyer already assumes that a modern smartwatch includes location features. When they do not see it, the watch looks outdated before it even reaches the shelf. That makes it harder for distributors and retailers to convince customers to pay competitive prices, which leads to slower sales and reduced margins.
There is also the issue of limited market reach. GPS unlocks multiple verticals such as fitness, outdoor adventure, children’s safety, and care for older people. Without GPS, your portfolio misses those fast-growing segments. Competitors who do offer GPS watches gain access to new customers and create stronger relationships with resellers. Market data shows that global GPS smartwatch sales are expanding at a compound growth rate of more than 15 percent through 2033, while basic trackers are expected to flatten. Ignoring GPS features means you lose significant revenue.
Brand credibility is another concern. When customers buy a smartwatch and find that it cannot deliver accurate routes, location sharing, or safety features, they are less likely to trust the brand in future launches. You can bet that very few people will be back to buy more. As GPS adoption grows, shelves filled with non-GPS watches are harder to clear.
How Can the Right OEM/ODM Partner Help You Capture the GPS Watch Market?
Integrating GPS into smartwatches sounds simple, but in reality, it requires careful design, hardware choices, and testing. A poorly selected chipset or badly tuned antenna can lead to weak signals, fast battery drain, and frustrated users. These issues damage brand reputation and can increase return rates. That is why choosing the right OEM or ODM partner is critical for anyone planning to sell GPS-enabled smartwatches in 2025.
A strong OEM partner offers expertise in multi-satellite systems such as GPS (United States), GLONASS (Russian Federation), Galileo (European Union), and Beidou (China). This ensures accurate performance in different regions, which matters for global distributors. They also have experience in optimizing firmware so the watch locks signals quickly and conserves power. This allows your product to compete with top-tier brands without adding unnecessary cost.
Well-established OEMs also streamline compliance. Certification with relevant regional telecom bodies can delay a launch by months if mishandled. A partner with proven experience can cut this timeline significantly and reduce risk. They can also adapt designs to meet market needs, whether that is a rugged outdoor watch, a fashion-forward model, or a child safety tracker. GPS watches are a key selling point in 2025 that you must tap into with the right partnership.
