Global Luxury Watch Market By Product Type (Electronic and Mechanical), By Distribution Channel (Offline and Online), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Luxury Watch Market Overview:

In 2021, the global luxury watch market was valued at USD 7,870.78 million. It is projected to grow at a CAGR of 4.7% between 2023 to 2032.

Market growth is driven by the growing popularity of luxury watches being used as status symbols among adults. Market growth will be aided by the launch of new products by companies like Rolex, Sonata and Titan. To increase their revenues, some companies offer limited edition watches in different designs and features.

Global Luxury Watch Market Scope:

Product type analysis

In 2021, mechanical products made up more than 76.3% of the market share. This product is preferred by large businesses because it can be worn as a fashion statement. The life expectancy of luxury mechanical watches is increased by the use of PVD and titanium ceramic coatings. Rolex SA, A. Lange & Sohne, Apple Inc., and The Swatch Group Ltd. are some of the major players offering mechanical products.

The fastest growth rate for electrical products is 5.1% between 2023 to 2032. These smartwatches are being added to the company’s product range. They include GPS capability, heart rate monitors, multisport tracking, and GPS capability. These watches allow the consumer to track their speed and distance. Apple Inc. offers a variety of customizable watches, which allow customers to select color, material, and other features.

Distribution Channel analysis

Online channels are expected to grow at a 7.1% CAGR between 2023 to 2032. Online channels are used by consumers to buy premium products because of their value-added services, such as cash on delivery, secure transactions, and integrated and central customer services.

Online retail strategies are being adopted by key players to reduce operational costs and increase profits. Rolex Inc. and Fossil Group are strong online retailers. They also sell their products online to expand their market reach. This distribution channel allows manufacturers to sell their products globally.

In 2021, the offline category made up more than 86.3% of global revenue. This segment has seen a significant increase in sales due to consumers’ increasing preference to buy high-end products at retail stores. It is also easier for consumers to determine the exact weight and size of the product in offline channels, such as convenience stores and supermarkets.

Кеу Маrkеt Ѕеgmеntѕ

By Product Type

• Electronic
• Mechanical

By Distribution Channel

• Offline
• Online

Market Dynamics:

As luxury products are widely accepted and valued by consumers, there will be a shift in consumer perception. The market for luxury products will be boosted by the expected increase in disposable income in emerging countries like Brazil, India, China, and China as a result of improving economic indicators at a national level. The majority of luxury goods buyers are first-time buyers. They prefer to purchase products that offer high quality and portray a certain image.

The demand for luxury watches for women is increasing. Companies are expanding their product lines for women, as women are more interested in upgrading watches than men. TIFFANY & CO and PATEK PHILIPPE TWENTY are some of the most recent luxury products for women. In expanding customer reach, the shifting trend towards gold and diamond watches is also a key factor. These products have been seen to be a strong competitor in the hand jewelry market. Many women prefer gold or diamond watches to jewelry.

This loyalty is often a sign of brand loyalty. As a result, customers are willing to spend more money when they shop with their favorite brands. Luxury brands that are well-recognized have consistent product quality and pay more attention to consumer sentiments. This helps to build the brand. The public’s word-of-mouth conversations play a crucial role in the promotion of luxury watches.

The majority of companies have increased their innovation spending over the last few years to preserve the nostalgic quotient and the physical complexity of mechanical watches. These products are made from titanium razor-sharp dials and cases. They have a 6.9mm chronograph and an in-built GMT function. TAG Heuer, a subsidiary of LVMH, introduced a balanced spring made from carbon composites in January 2019.

This development is aimed at ensuring that carbon is not susceptible to temperature changes and magnetic fields. These carbon hairsprings are reported to be part of the Autavia Isograph watch models.
Smartwatches are wrist-worn wearable devices that provide functionalities beyond traditional wristwatches. These smartwatches are often used as companion devices and must be paired with a smartphone via Bluetooth or near-field communication (NFC), among other technologies.

In 2013, the global market was valued at US$ 702.5 million, with just over 2 million units shipped in that same year.

Future buyers will continue to be attracted by the presence of distance trackers, GPS, and health trackers as well as pairing smartphones and smartwatches via Bluetooth. The smartwatch market has been driven by the widespread adoption of electronics around the world. These smartwatches are also popular because they can be connected to both iOS and Android operating systems. These smartwatches will be a more popular choice than luxury watches because they have fitness-related features.

Regional Analysis

The Asia Pacific will be the fastest-growing market with a market share of 33.9%. The market’s growth will be boosted by changing consumer behavior and rising disposable income, particularly in developing countries like Japan and China. By understanding the market’s potential, global luxury brands are expanding into countries such as India, China, and Japan. China was responsible for more than 46.1% of 2021’s total revenue.

China accounts for 47.3% of the luxury watches market share in the Asia Pacific. This is due to its high net worth population. Due to rising adoption rates among millennials, the country generated US$ 1,550 million in market revenues. It is expected to grow to US$ 2270 million by 2032. Marketing strategies like focusing on eCommerce websites specifically targeted at the young generation are key to this trend.

In 2021, Europe was responsible for more than 31.2% of global revenue. It is expected that the high concentration of buyers in developed countries such as Germany, France, and Switzerland who are looking for products with distinctive characteristics and brand value will have a significant impact on global revenue. This region has been dominated by Swiss watchmakers.

The U.K. accounted for 21.3% of Europe’s total luxury watch market. The market revenue in the U.K. reached US$ 490 million in 2021. It is expected to grow at a 3.5% CAGR from 2023 to 2032 to reach US$ 600.8 million. A large number of high-net-worth individuals live in the United Kingdom, which is crucial for the lucrative luxury watch market.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

A. Lange & Sohne, Rolex SA, Apple Inc., The Swatch Group Ltd. and Bernard are key players in this market.; CITIZEN, CASIO, Seiko and Audemars Piguet. To gain a competitive edge in the market, companies are developing new products.

In 2019, Rolex SA launched 6 new models, including YACHT master 42 and GMT master II. Day date 60, date only 36, and 31 are just a few examples. A. Lange & Sohne also launched the 2019 debuts collection with 5 new models, including Lange 1, Zeitwerk Date, and Langematik Perpetual honey gold, Langematik Perpetual Tourbillion, Langematik Perpetual Tourbillion, Langematik Perpetual Gold, and Richard Lange Jumping Seconds.

Маrkеt Кеу Рlауеrѕ:

• A. Lange & Söhne
• Rolex SA
• Apple Inc.
• Bernard Watch Co.
• The Swatch Group Ltd
• FOSSIL GROUP, INC.
• Seiko Watch Corporation
• CITIZEN WATCH COMPANY OF AMERICA, INC.
• Other Key Players

For the Luxury Watch Market research study, the following years have been considered to estimate the market size: