GVR Report cover 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, 2020 - 2025

  • Report ID: GVR-3-68038-234-1
  • Number of Pages: 80
  • Format: Electronic (PDF)

Report Overview

The global luxury watch market size was valued at USD 7.18 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2025. The 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 market growth.

U.S. luxury watch market

Furthermore, companies are offering limited edition 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.

Demand for women's 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's luxury product launches include TIFFANY & CO AND PATEK PHILIPPE TWENTY, BULGARI SERPENTI INCANTATI, and A. LANGE & SOHNE SAXONIA THIN.

The 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.

Luxury Watch Market Trends

Shifting perception among consumers towards luxury goods as they contribute to great social acceptance is expected to remain a key trend. Additionally, the increase in disposable income in emerging economies including China, India, and Brazil as a result of improvement of economic indicators on a domestic level is expected to promote the market demand for luxury products. It is observed that the majority of first-time buyers of luxury goods opt for those variants which offer the experience of high quality and to portray a certain image in society.

Most of the time, this converts into brand loyalty and as a result, they do not mind spending some extra amount for purchasing from their favorite brands. Recognized luxury brands have some consistency in the quality of the product and take extra care of consumer sentiments. This contributes to the evolution of the brand name. Word-of-mouth conversation from the public also plays a key role in promoting luxury watches.

Over the past few years, the majority of companies are increasing their spending on innovation to maintain the nostalgia quotient as well as the physical intricacy of mechanical watches. For instance, in March 2019, LVMH Launched a mechanical chronograph watch under the umbrella of the BVLGARI brand, marketed under the name, Octo Finissimo Chronograph GMT. These products are manufactured by using cases and dials derived from titanium razor-sharp with a 6.9mm-thick chronograph and in-built GMT function. Additionally, in January 2019, LVMH subsidiary, TAG Heuer introduced a new balanced spring derived from carbon composites. The main intention of this development is related to the non-susceptibility of carbon to the magnetic fields and temperature changes. It is reported that the new variants of Autavia Isograph watches incorporate these carbon hairsprings.

A smartwatch is a wrist-worn wearable device and provides functionalities far beyond those of a traditional wristwatch. They are usually used as a companion device and need to be paired with a smartphone through Bluetooth and near-field communication (NFC) among other technologies. The global market was estimated to be valued at USD 702.5 million in 2013, with shipments in the same year amounting to a little over 2 million units.

The presence of GPS, distance tracker, health tracker, and pairing of smartphones and smartwatches via Bluetooth are expected to remain one of the key features that will attract buyers in the future. Furthermore, extensive adoption of electronics across the globe has driven the smartwatch segment. These products also gain popularity on account of their ability to stay connected with both iOS and Android operating systems. The rising demand for these smartwatches is expected to limit the scope of luxury watches among consumers as they offer attributes suitable for fitness-concerned consumers.

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. The 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 smartwatches fitted out with advanced functionality such as heart rate monitors, 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

The 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 costs and increase their profits. Companies such as Rolex Inc., Fossil Group, and Ralph Lauren have a strong presence in offline retail stores and also offer their products online in order to increase their market reach. It is also convenient for 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. The major factor contributing to the growth of this segment is the growing consumer preference for purchasing high-end products from retail stores. Furthermore, it becomes easy for 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 countries like Japan, China, and India by understanding the potential of the market. In the Asia Pacific, China accounted for over 45.0% share of the total revenue in 2018.

China is the largest market for luxury watches in the region accounting for 46.6% of the total market share of Asia Pacific owing to the presence of a high net worth population. The country accounted for USD 1.55 billion in market revenue and is anticipated to reach USD 2.27 billion by 2025 owing to the increasing adoption rate among millennials and young generations. This trend is propelled by the marketing strategies such as focusing on e-commerce websites that are specifically designed to target the young generation.

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

Luxury Watch Market Trends by Region

The U.K. was one of the largest markets for luxury watches in Europe and accounting for 19.9% of the total market share in the region. In 2018, the market revenue in the U.K. was USD 475 million and is anticipated to reach USD 594.9 million growing with a CAGR of 3.3% from 2019 to 2025. The U.K. is home to a large High Net Worth population which is a crucial factor for the lucrative luxury watch market.

According to a report published in December 2018, in ‘The Guardian’ the number of Ultra High Net Worth Individuals (UHNWIs) in Britain has increased by 8.5% over the last year and has reached the mark of 4,670. The number of millionaires is increasing with a significant growth rate opening a new avenue for the luxury watch market in the foreseeable future.
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, owner's name, and service history instantly.

Key Companies & Market Share Insights

Key players in 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 has 5 new models such as Lange 1, Zeitwerk Date, Datograph Perpetual Tourbillion, Langematik Perpetual Honey Gold, and Richard Lange Jumping Seconds.

Luxury Watch Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 7.47 billion

Revenue forecast in 2025

USD 9.26 billion

Growth Rate

CAGR of 4.3% from 2019 to 2025

Base year for estimation

2019

Historical data

2015 - 2018

Forecast period

2020 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2025

Report coverage

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

Segments covered

Product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; U.K.; China; Japan; Brazil; South Africa

Key companies profiled

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

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country; regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Luxury Watch Market Segmentation 

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:

Global Luxury Watch Market Segmentation

  • 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

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