Global Luxury Watches Market by Type (Analog, Digital and Hybrid), Gender (Men, Women & Unisex), and Distribution Channel (Offline & Online), and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2030
Luxury Watches Market size was worth around USD 40.96 billion in 2021 and is predicted to grow to around USD 57.14 billion by 2030 with a compound annual growth rate of roughly 4.2% between 2022 and 2030. Rising disposable income in developing countries such as Brazil, China, and India witnesses product demand, which is projected to remain a key growth driver.
Luxury watches are timepieces that are considered high-end products by buyers due to their high price, class, aesthetics, scarcity, exceptionality, and a high degree of non-functional relations. Among the variables that contribute to the product's increased sales are its price strategy, its prestige, and its material. As a high-end product, a luxury watch's price strategy focuses on pricing which is significantly higher than other types of watches, which helps to attract wealthy members of society.
Moreover, a luxury watch is not merely an ordinary watch; it is a distinguished timepiece that is highly regarded and regarded as being of premium quality and is worn by extremely successful and well-respected individuals. In addition, it utilizes extremely rare precious metals that are not typically utilized in standard or budget watches.
With the rise of millennials, social media and influencer marketing flourished. A few years ago, many businesses believed that influencer marketing would be a passing fad, but it is now clear that both luxury and budget watch brands have received some of their most influential campaign voices from influencers and celebrities. Moreover, collaborations with influencers and sportspersons for luxury watch marketing campaigns have significantly assisted the industry in sustaining and developing true ties with its client base, particularly during the global pandemic.
- As per the analysis shared by our analyst team, the luxury watches market share is estimated to grow annually at a CAGR of around 4.2% over the forecast period (2022-2030).
- In terms of revenue, the luxury watches market size was valued at around USD 40.96 billion in 2021 and is projected to reach USD 57.14 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
- Based on type, the analog was predicted to show maximum market share in the year 2021
- Based on gender, the women segment was the leading revenue-generating in 2021
- Based on distribution channels, the offline were projected to show the largest share in the year 2021
- On the basis of region, Asia Pacific was the leading revenue generator in 2021
Growing Brand Endorsements to Expand Brand Awareness Among the Customers Augmenting the Market Growth
Celebrity brand ambassadors have always been an appealing method for brands to increase brand recognition. There appears to be a similar theme of using all-star and mega-influencers among luxury watch businesses that employ a variety of celebrity endorsers for luxury products.
- For instance, in December 2021, Millie Bobbi Brown for Moncler posted on Instagram which generated $1.4 million in MIV. Celebrities bring instantaneous and obvious brand value to this marketing strategy.
As millennials have been observed to seek out attributes in things beyond functionality and place a greater emphasis on establishing a lifestyle and having meaningful experiences.
Also, the partnership between Rolex and the National Geographic Society funds innovative expeditions, and scientific research, to expand awareness of the risks to the planet's life-supporting systems and spur action to solve them. Together, the collaboration sponsors a series of trips to explore the impact of climate and environmental change on the world's most fragile and iconic ecosystems, to chronicle the resulting changes and their implications for people and species.
Shifting Consumer Preference for Luxury Products Propelling Market Growth
The shifting inclination of customers to use luxury watches as a status symbol is a significant driver propelling the industry. It is projected that the introduction of new products by important players such as Seiko, BVLGARI, and Rolex would contribute to the expansion of the market. In order to improve their revenue, firms are also offering limited edition timepieces with unique designs and functions. Moreover, several factors such as brand recognition, the effect of westernization, and an intrinsic need for exclusivity are supporting the luxury watches market trends.
Shortage of Luxury Products Due to COVID-19 Pandemic Hampering the Market Growth
Watch manufacturers are facing limited availability due to slow production affected by the COVID-19 pandemic and unmatched demand.
- For instance, in July 2022, the CEO of Watches of Switzerland Group, Brian Duffy, stated the supply of watches is diminishing for Rolex, Patek Philippe, Audemars Piguet, Omega, and others.
Moreover, huge waiting periods of up to a year for consumers are limiting the luxury watches market growth. The industry has been negatively impacted by the COVID-19 pandemic. The pandemic affected the United States, Europe, and Asia, which were the leading purchasers of luxury timepieces. Thus, the market experienced a drop in demand and a sluggish expansion as a result of people's limits on transportation and thrifty spending habits.
September 2022- Girard-Perregaux launched Laureato 42mm Green in octagonal bezel which will be available from November 2022.
January 2022- Jacob & Co. and Bugatti spent nearly a year building a one-of-a-kind clock that replicates the visceral sensation of the renowned 16-cylinder Bugatti engine, by launching launched Bugatti Chiron Blue Sapphire Crystal.
April 2021- Hermes launched H08 New Men's Watch Collection with 5 distinct 39 mm sizes in the collection whereas 4 of the components are composed of titanium, while the 5th is a graphene-filled composite case. The original cushion-shaped collection blended taut and flowing lines, with a case whose edges were rounded to frame the circular dials.
September 2020- Stefano Ricci Group launched the OCTAGON luxury watch in Haute Horlogerie. available in limited editions of 10 for each Chronograph, Annual Calendar, and Perpetual Calendar model, including precious Diamond Lux versions of 18KT white gold.
Based on type, the analog segment dominates the market share through 2030 owing to the usage of precious metals in every component of mechanical watches, from the hands of the watch to the entire surface. Moreover, the timepieces favored by a considerable portion of the business class is used as a fashion statement. The combination of titanium ceramic and PVD coatings increases the durability of mechanical luxury timepieces. A. Lange & Sohne, Rolex SA, and The Swatch Group Ltd. are some of the leading providers of analog watches.
On the basis of gender, the luxury watches market is categorized into men, women, and unisex. The women segment dominates the market share owing to women being more interested in upgrading their watches than men, which is prompting companies to increase their offerings for the female market. T&CO, Patek Philippe, A. LANGE & SOHNE, and Bvlgari, are some of the most recent debutants of luxury products for women. The transformation from traditional to diamond and gold watches plays a significant role in extending the client base.
By distribution channel, the market is bifurcated into offline and online. The offline segment dominates the market share owing to increased consumer preference for acquiring luxury goods through retail establishments. In addition, offline channels, such as convenience stores, supermarkets, and company-owned brand retail locations, make it simple for consumers to comprehend the exact size and weight of the products.
Asia Pacific is Dominating Market Owing to an Increasing Number of Data Centres
Asia Pacific is dominating the luxury watches market revenue by 2030 owing to changing consumer behavior and rising disposable income, particularly in key economies such as China, India, and Japan, which are the driving forces behind the expansion of the Asia-Pacific market. The causes responsible for the expansion of the market in this region include a surge in economic growth, particularly in India and China, which results in a higher quality of living and the concentration of a significant number of rich individuals in the region, among others.
According to the United Nations Population Fund, the most populated region is Asia Pacific, around 60%. As a result, Asia-Pacific is one of the primary markets targeted by luxury watch manufacturers, as its market growth potential is solid.
- For instance, Franck Muller has launched limited-edited watches for India in two variants – steel and gold (100 pieces) and rose gold (50 pieces) targeting the Indian market.
Key players in the luxury watches industry are PATEK PHILIPPE SA, BVLGARI, A. Lange & Söhne, Seiko, Bovet Fleurier S.A., Rolex SA, Samsung Electronics Co., Ltd, Ulysse Nardin, Hublot, Apple Inc., Audemars Piguet, Fossil Group, Inc., Vacheron Constantin, OMEGA SA, URWERK, Louis Vuitton Malletier SAS, Richemont International SA, Garmin Ltd, Stefano Ricci Group, T&CO, GIRARD-PERREGAUX, Arnold & Son, H. Moser & Cie, amongst others.
The global luxury watches market is segmented as follows:
By Distribution Channel
- North America
- The U.S.
- The UK
- Nordic countries
- Benelux Reunion
- The Netherlands
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America