Luxury Watches Market Outlook 2031
The Global Luxury Watches Market size was valued at USD 28.43 Billion in 2022 and is likely reach to USD 40.12 Billion by 2031, expanding at a CAGR of 3.9% during the forecast period, between 2023 and 2031. A watch is a portable and wearable device designed to keep a constant movement regardless of the motions caused by the wearer’s activities. The primary aim of a watch is to display the time of day to the user at all times.
However, in recent times, various extra features have been added to watches, such as timers, alarms, calculators, GPS, and Bluetooth. Such watches are known as smartwatches. Luxury watches are expensive collective watches that are heavily priced owing to expert craftsmanship, trendy design, and visual appeal.
Luxury watches are a product manufactured by luxury brands and purchased by people with extensive disposable income in order to maintain a status symbol.
Scope of Luxury Watches Market Report
The report on the global luxury watches market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Luxury Watches Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016-2021
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Forecast Period
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2023-2031
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Segmentation
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Types (Mechanical Watches and Electronic Watches), End-users (Men and Women), Distribution Channels (Online Stores, Single Brand Stores, and Multi Brand Stores)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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LVMH Moet Hennessy -Louis Vuitton, CASIO Computer Co. Ltd., Fossil Group Inc., Citizen Watch Co. Ltd., Rolex SA, Compagnie Financière Richemont SA, Movado Group Inc., Patek Philippe SA, Seiko Holdings Corp., and the Swatch Group Ltd.
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Luxury Watches Market Segment Insights
Heavy craftsmanship and intricacy of designs drive the mechanical watches segment
Based on types, the luxury watches market can be bifurcated into mechanical watches and electronic watches. The mechanical watches segment held a share of 76% in 2019 and is projected to register a significant CAGR during the forecast period. Mechanical watches use clockwork mechanisms to measure the passage of time.
These watches are made with heavy designs with different concepts such as history and heritage. Luxury brands are focused on launching mechanical watches with an aesthetic and grand appeal to attract consumers with a preference for historic, skilled, and classy watches. Mechanical watches have more complications as they are made with all the expertise and knowledge about watchmaking.
However, with the developments in the consumer electronics market, various electronic watches are launched by luxury brands that provide more features to the consumer. As opposed to mechanical watches, electronic watches not only show the time but also provide Bluetooth and GPS facility to the user.
These are also known as smart watches and are extensively priced owing to the brand value and cost of production.
Multi brand stores to witness a surge in sales during the forecast period
Based on distribution channels, the market can be segmented into online stores, single brand stores, and multi brand stores. The multi brand stores segment held a maximum share in the market in 2020 and is projected to grow at a robust expansion rate during the forecast period. Multi brand stores offer a variety of brands and watches for prospective consumers.
Brand speciality, originality, and excellent customer service has led this segment to grow at a rapid rate. Multi brand stores offer multiple models and exploration for customers and also have different festive discounts and incentives, which further drives the segment growth.
The online segment is also projected to grow significantly owing to the rising penetration of the Internet. However, as compared to multi brand stores, the online store segment has not generated enough revenue owing to the threat of counterfeit and deceptive sales of luxury products.
Rise in the number of working women increases the women segment growth
On the basis of end-users, the market can be classified as men and women. The women segment held a substantial share of the market in 2020 and is estimated to grow at a rapid rate in the coming years. The rise in the number of working women and disposable income primarily influence the growth of this segment.
Various designs of luxury watches have been conceptualised adhering to the preferences of the modern women, such as diamond studded watches. Luxury brands have launched various luxury watches for women that are intricate and connected to the culture and heritage of various countries.
Surge in the demand for high end, aesthetic, and designer watches by women has propelled the market growth significantly.
In terms of regions, the global luxury watches market can be categorized as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe dominates the market due to the presence of a majority of key players in the region. For example, LVMH Moet Henessy Louis Vuitton SE and Rolex are based in Europe.
North America also contributes a significant market share due to the rising wealthy population and working women. The market in Asia Pacific is forecasted to expand at a robust growth rate during the forecast period due to the rising disposable income in countries such as China, Japan and India and increase in the standard of living aided with the influence of social media on the youth.
Segments
Types
- Mechanical Watches
- Smart Watches
Distribution Channels
- Online Store
- Single Brand Store
- Multi Brand Store
Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
Key Players
- LVMH Moet Hennessy -Louis Vuitton
- CASIO Computer Co. Ltd.
- Fossil Group Inc.
- Citizen Watch Co. Ltd.
- Rolex SA
- Compagnie Financière Richemont SA
- Movado Group Inc.
- Patek Philippe SA
- Seiko Holdings Corp.
- the Swatch Group Ltd.
Competitive Landscape
Key players in the global luxury watches market include LVMH Moet Hennessy -Louis Vuitton, CASIO Computer Co. Ltd., Fossil Group Inc., Citizen Watch Co. Ltd., Rolex SA, Compagnie Financière Richemont SA, Movado Group Inc., Patek Philippe SA, Seiko Holdings Corp., and the Swatch Group Ltd.
These players are widely engaged in various business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence and expand their consumer base globally.
In June 2021, a Switzerland-based watchmaker company, Tudor introduced the “mid-sized” Black Bay 58 collection, including the Black Bay Fifty-Eight Bronze. The 200-meter water-resistant watch is secured to the wrist by a matching bronze bracelet fitted with the Tudor “T-fit” rapid adjustment system, which allows the wearer to adjust the clasp in five positions, across 8 mm, with no additional tools necessary.
In April 2021, Hermes launched a new men's watch collection called Hermes H08. The collection has five distinct 39 mm references, with four in titanium and one piece with a graphene-filled composite case. The cushion-shaped collection has a sporting-inspired design that mingles taut and flowing lines, while a case with softened edges frames the circular dials.
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