Luxury Watch Market Future Projection, 2024-2031

Luxury Watch Market Future Projection, 2024-2031

The luxury watch market is extremely volatile, influenced by numerous factors. As we peer into 2024, we have prepared a detailed report to forecast the trajectory of the watch market circa 2024 to 2031 to help Watch collectors, investors, and others make informed investment decisions.

Objective

The primary objective of this report is to provide a comprehensive market value forecast for the next seven to eight years, drawing upon recent data collected from diverse market segments and countries. It also aims to shed light on the market's main driving forces and the factors propelling the growth of the luxury watch market.

Global Growth

Forecasts predict a continued global expansion of the luxury watch market, with Rolex, Patek Philippe, Audemars Piguet and Richard Mille being the key players. The global watch market size was valued at USD 97.22 billion in 2022 and is estimated to reach USD 148.50 billion by 2031, growing at a CAGR of 4.82% during the forecast period 2024-2031.

Market Analysis Based On Various Segments

• Based On The Watch Type

Mechanical and quartz are the two types of watches in the industry. In 2020, mechanical accounted for about 75.4% of the global luxury watch market. Consumers prefer mechanical watches over other forms because they incorporate the watchmaker’s expertise and knowledge and are more sophisticated. Moreover, the younger generation and the affluent millennials are attracted to luxury mechanical timepieces as they seek simplicity and transparency while choosing their watches. Additionally, the recent surge shows consumers' preference for vintage-inspired pieces as well, driving the sales of quartz watches.

• Based On The Gender 

The market for women's luxury watches was calculated at $24.66 billion in 2020, and it is predicted to grow to $ 32.24 billion by 2027, a CAGR of 3.90%. As most women adore diamond-encrusted watches, luxury watchmakers are promoting diamond pieces. Also, the rise in the number of women in the workforce is driving the growth of the luxury watch industry and will continue to do so in the predicted period. Additionally, the unisex segment is estimated to exhibit a CAGR of 5.20% over the forecast period, with watchmakers producing more and more pieces targeted to both men and women.

• Based On The Distribution Channel

There are two main types of distribution channels: online and offline. Because of social media platforms and well-developed e-commerce platforms, the online distribution channel is estimated to grow at a CAGR of 6.5%. The convenience of online shopping has led to a dramatic increase in the worldwide watch market.

Regional Analysis

World’s Largest Consumer Of Luxury Watches

Asia-Pacific is forecasted to lead the global luxury watch market with a CAGR of 6.22% during the given period. The expansion of the market is attributed to the introduction of global products and brands and also to the increasing demand for luxury timepieces. The rising disposable income and shifting consumer preferences will further spike the demand. China, Japan, India and Hong Kong are the main contributors to the trend. Rolex, Cartier, Omega, and Patek Philippe are the most prominent watchmakers with a regional presence. Steel, bi-metal and precious metal watches attract more customers.

Europe is expanding exponentially and is expected to exhibit a CAGR of 3.56%. Numerous watch companies are trying to penetrate the European market to cater to a wider audience base and preferences.

Additionally, the UK has remained the region’s largest watch-selling market, owing to its robust consumer base.

The Middle East and Africa market is driven by high-end customers who share a strong preference for exotic timepieces from brands like Rolex and Patek Philippe.

What factors drive the global luxury watch market?

1. Social media promotions: More and more brands are now leveraging the power of social media to boost growth. For instance, the upcoming James Bond film series will feature the Omega Seamaster 300M 007 Edition timepiece. Promoting the watch on social media and other digital platforms will generate further growth opportunities during the forecast period.

2. Product innovations: The leading watch companies in the market have been gaining a competitive edge with innovations like producing eco-friendly straps. For instance, in 2019, Breitling released a watch with a strap made from recycled materials. Each timepiece comes fitted to a NATO strap made from ECONYL yarn, a regenerated nylon waste from oceans and landfills worldwide. Such product innovations lead to market growth.

3. Increasing demand for luxury accessories: The Swiss watch industry has strongly influenced how consumers across the globe purchase watches. Although the watch market is quite settled, a sudden change in the consumer purchasing pattern of a particular watch brand will shift the global watch trend. One such brand capable of doing this is Rolex. Rolex is a brand that alone can shoot up sales with the launch of a new model or any new collaboration.

END NOTE

As per the market assessment, the global luxury watch market is poised to experience substantial growth throughout the forecast period from 2024-2031. This includes the sales and revenue predictions as well. With the prominent players increasingly implementing strategies, the market has shown a steady growth trajectory in 2023 and will continue to do so in the coming years.