Luxury Watch Market Size, Share & Trends Report

Luxury Watch Market Size, Share & Trends Analysis Report By Product (Mechanical, Electronic), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-234-1
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Industry Insights 

The global luxury watch market size was valued at USD 6.9 billion in 2018. Growing preference for using luxury watches as a status symbol among adults is a key factor driving the market. New product launches by companies including Titan, Sonata, and Rolex are expected to have a positive impact on the market growth.

Furthermore, companies are offering limited addition watches with different designs and features to increase their revenue. Some of the limited edition products are Louis Moinet Singapore Edition, Bovet 1822, Panerai Mare Nostrum Acciaio, Avantist Martina Navratilova Wimbledon 1987, and Audemars Piguet Royal Oak Chronograph.

U.S. luxury watch market

Demand for women luxury watches is also increasing significantly. It has been observed that women are becoming more interested in upgrading their watches as compared to men, which is driving the companies to expand their product line for the women segment. Some of the recent women luxury product launches include TIFFANY & CO AND PATEK PHILIPPE TWENTY, BULGARI SERPENTI INCANTATI, and A. LANGE & SOHNE SAXONIA THIN.

Shifting trend from conventional to golden and diamond watches is also playing a crucial role in expanding the customer reach. It has been observed that these products are giving tough competition to the hand jewelry market. A large number of women prefer to wear gold or diamond watches rather than jewelries.

Product Insights

Mechanical products accounted for the largest share of more than 75.0% in 2018. A large business class population prefers to purchase this product as it can be used as a style statement. Utilization of titanium ceramic coatings and PVD coatings increases the life of mechanical luxury watches more than conventional products. Some of the key players that are offering mechanical products are Rolex SA; A. Lange & Söhne; Apple Inc.; and The Swatch Group Ltd.

Electrical products are expected to expand at the fastest CAGR of 4.7% from 2019 to 2025. The companies are expanding their product line on smart watches fitted out with advanced functionality such as heart rate monitor, GPS capabilities, and multisport tracking. These watches help the consumers to track their distance and speed. Moreover, vendors such as Apple Inc. offer an option of customized watches that can allow the consumer to choose color, material, and features.

Distribution Channel Insights

Online channel is projected to expand at a CAGR of 6.5% from 2019 to 2025. Consumers use online channels to purchase premium products on account of favorable value-added services including cash on delivery, convenient return policies, secured transactions, and integrated and centralized customer services.

Global luxury watch market

Key players are adopting online retail strategies to decrease operational cost and increase their profits. Companies such as Rolex Inc., Fossil Group, and Ralph Lauren having a strong presence in offline retail stores also offer their products online in order to increase their market reach. It is also convenient for the manufacturers to sell their products at a global level through this distribution channel.

The offline category accounted for more than 85.0% share of the global revenue in 2018. Major factor contributing to the growth of this segment is growing consumer preference for purchasing high end products from retail stores. Furthermore, it becomes easy for the consumers to understand the exact size and weight of the product from offline channels including convenience stores, supermarkets, and company owned brand retail outlets.

Regional Insights

Asia Pacific is expected to be the fastest growing market, expanding at a CAGR of 4.7% from 2019 to 2025. Changing consumer behavior and growing disposable income, especially in developing countries such as China and Japan, are expected to boost the growth of the market. Global luxury brands are entering into countries like Japan, China, and India by understanding the potential of the market. In Asia Pacific, China accounted for over 45.0% share of the total revenue in 2018.

Europe accounted for over 30.0% share of the global revenue in 2018. High concentration of buyers who prefer products with unique characteristics and brand value in developed economies including Germany, France, Switzerland, Netherlands, and U.K. is expected to have a strong impact. The Switzerland-based watch manufacturers have maintained a strong market hold in this region.

According to the Federation of the Swiss Watch Industry, Switzerland manufactures over 30 million units of watches per year and it accounted for around 2.5% of the global share for the year, 2018. ChronoBase platform is very popular in this region. People prefer to purchase Chrono ethereum based digital certificates to register the watches. This certificate confirms their origin, owners name, and service history instantly.

Luxury Watch Market Share Insights

Key players of the market include Rolex SA; A. Lange & Söhne; Apple Inc.; The Swatch Group Ltd.; Bernard.; FOSSIL GROUP, INC.; CITIZEN; Seiko; CASIO; and Audemars Piguet. Companies are working on new product development to get a competitive advantage in the market.

For instance, in 2019, Rolex SA had come up with 2019 collection with 6 new models such as YACHT master 42, sea-dweller, GMT master II, day date 60, date just 36, and date just 31. Similarly, A. Lange & Söhne has launched 2019 debuts collection, which have 5 new models such as Lange 1, Zeitwerk Date, Datograph Perpetual Tourbillion, Langematik Perpetual Honey Gold, and Richard Lange Jumping Seconds.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

Country scope

U.S., U.K., China, Japan, Brazil, and South Africa

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global luxury watch market report on the basis of product, distribution channel, and region:

  • Product Outlook (Revenue, USD Billion, 2015 - 2025)

    • Mechanical

    • Electronic

  • Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • U.K.

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

Key questions answered by the report
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