The global watches market size was valued at USD 50.1 billion in 2018. Increasing fashion trends among people and rising disposable income of the working class population on a global level are projected to remain favorable factors in the market. Furthermore, increasing number of new product launches in the smart and fitness watches segments by telecom companies including Apple Inc. and Xiaomi is projected to expand the watches market reach over the next few years.
Rising disposable income in emerging economies such as China and India is projected to increase the purchasing power among middle-class income groups. This will further allow them to use different types of watches as per their needs and requirements. Furthermore, growing popularity of smartwatches as gifting options on special occasions is expected to remain a favorable factor in the near future.
Demand for these watches is witnessing high growth due to the launch of new innovative products by renowned companies including Apple, Fitbit Inc., and Samsung. Easy availability of smart watch variants with respect to various age groups is promoting the product penetration in the market. Moreover, rising inclination of people towards luxury watches, especially Swiss made, is boosting the industry growth. Use of fitness watches by sportspersons or any other fitness oriented person is drawing in more demand for these products and aiding the global market expansion.
Some smart and fitness watches are cost-effective, user-friendly, and have excellent battery life, which is attracting more customers. Attractive features and fashionable accessories are creating awareness among the customers regarding the benefits offered by these products. Furthermore, presence of all the display features including timing and body mass percentage through various applications in smartphones is projected to limit the use of watches.
Smart watch is expected to expand at a CAGR of 12.8% from 2019 to 2025. Presence of GPS, distance tracker, health tracker, and pairing of smartphones and smart watches via Bluetooth are expected to remain one of the key features that will attract the buyers in the near future. Furthermore, extensive adoption of electronics across the globe has driven the smart watch segment. These products also gain popularity on account of their ability to stay connected with both iOS and Android operating systems. However, limited battery life can be a potential drawback and threat to this segment.
Fitness watch is the fastest growing segment with a CAGR of 13.7% from 2019 to 2025. The growth is attributed to rising popularity of these products among the fitness oriented people as they help in accessing the body activities including cycling, daily steps, swimming laps, heart rate, and sleeping pattern. These features are attracting customers who want to keep a track of their daily activities, including number of required steps, calories intake, and heart rate. Rise in the income levels of middle class population is enabling them to spend more on such products in order to meet their desires and requirements.
The quartz segment accounted for the largest share of 70.8% in 2018 due to its increasing utility in checking the body activities including heart rate and number of walking steps. Rising awareness regarding health fitness among working class adults on a global level is projected to promote the utility of quartz watches in the near future.
Mechanical watches are usually not precise as compared to modern electronic quartz watches since they need regular maintenance and cleaning by professionals. Mechanical application is mostly found in high-end luxury watches, which are bought for aesthetic reasons by the buyers. These products are expected to expand at a CAGR of 13.7% from 2019 to 2025.
Hypermarket/supermarket generated a revenue of USD 21.4 billion in the year 2018. The segment is expected to dominate the industry as a result of increasing purchase of the product, along with the daily household items by middle income age groups. Furthermore, risingnumber of supermarkets in emerging economies including China and India as a result of urbanization, along with the supportive policies to promote the infrastructure development on a domestic level, is projected to ensure the access of the products to the buyers over the next few years.
Online channel is projected to expand at a CAGR of 14.0% from 2019 to 2025. Over the past few years, customers have been increasingly using e-commerce as a key selling media that provides products, along with the value-added services including cash benefits and free-delivery charges.
North America dominated the watches market, accounting for more than 30.0% share of global revenue in 2018. Strong market presence of brands including Apple, Fossil, and Hager is expected to remain a favorable trend. Furthermore, rising fitness awareness among the working class population in U.S. due to high obesity ratios is expected to compel people to increase their spending on gadgets, including fitness watches.
Asia Pacific is expected to expand at the fastest CAGR of 13.9% from 2019 to 2025. Changing lifestyle, urbanization, and rising disposable income among middle-class income groups of developing countries such as South Africa, China, and India are projected to upscale the demand for watches over the next few years. Europe is expected to hold a significant share due to new product launches by companies including Rolex, Omega, and Tag Heuer. The region is anticipated to expand at a CAGR of 13.5% from 2019 to 2025.
Major manufacturers include Rolex SA; Oakley, Inc.; Omega SA; Apple Inc.; Patek Philippe SA; and Titan Company Limited. Apple holds a major share in the smart watches segment accounting for almost 75.0%. G-Shock GWF 1035F-1 and EDIFICE ECB900DB-1A are some of the new product launches by CASIO. Edifice is solar powered and comes with Bluetooth connectivity and 100m water resistant. In the smart watch segment, Apple launched its one of the awaited products, Apple Watch 4, which is available in new larger screen, motion-tracking software, heart-rate monitor, and new speakers with 50pc louder.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Billion & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
U.S., Germany, U.K., China, India, Brazil, and South Africa
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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 watches market report on the basis of product, distribution channel, operation, and region:
Product Outlook (Revenue, USD Billion, 2015 - 2025)
Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
Operation Outlook (Revenue, USD Billion, 2015 - 2025)
Regional Outlook (Revenue, USD Billion, 2015 - 2025)
Central & South America
Middle East & Africa
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