Watches Market Size, Share & Trends Analysis Report By Product, By Type (Quartz, Mechanical), By Category (Luxury Watches, Non-Luxury Watches), By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Watches Market Size & Trends

The global watches market size was valued at USD 112.1 billion in 2023 and is projected to grow at a CAGR of 9.1% from 2024 to 2030. Increase in the standard of living and entry of new products in the market. Furthermore, increased consumer spending expenditure on fashion accessories, as a result of improving purchasing power, escalates the demand for premium fashion accessories. Companies adapt by introducing well-designed, long-lasting goods, a key factor for the connected process of product premiumization.

There has been an increase in the rate of new products, especially in the subsector of smartwatches which is one of the factors that have boosted the global watches market. The consumer is more health conscious now and wants smartwatches that have several health features that include countless fitness-related activities such as heart rate, step count, sleep, and notifications.

In the production of watches, both innovation and technological advances are used to help create a new product, improve the functionality of new and current watches, and improve the looks of the watches, thus appealing to those who would like to buy exclusive and classy timepieces. Furthermore, technological advancement enhances the aesthetics, efficiency, and longevity of luxury watches and meets the dynamically changing expectations of consumers regarding gadgets, personalization, and sustainability thus driving the demand for watches and the growth of the market.

The influence of Western countries, along with customer awareness about brands, has also boosted the demand for watches all over the world. luxury brands or fashion accessories, consumers are attracted to luxury watches such as Rolex and Omega due to their quality design. Furthermore, the manufacturers are in collaboration with actors for product publicity, utilizing channels such as social media and other related pages.

Product Insights

The traditional watches product segment dominated the market with a revenue share of 54.1% in 2023. Traditional watches are thought to be an inherited thing or a symbol of status in the society of today’s culture. The complexity of their movements is elaborate, the cases are made of precious metals and set with gemstones, and the production of most wristwatches is limited. Traditional watches are more acceptable among consumers and can easily pay a premium price due to the quality and craftsmanship associated with them.

The smartwatches segment is expected to register the fastest CAGR of 11.0% in the forecast period. This can be attributed to its technology, health-centered features, convenience, IoT integration, fashion appeal, strong brand offerings, and increased demand during the pandemic. Moreover, smartwatches not only tell time, but they are also designed to perform a lot more other functions including; Activity tracking, health monitoring, notification, and connectivity with other devices.

Type Insights

Quartz watches held the largest revenue share of 70.0% in the market in 2023. Quartz watches have surpassed mechanical timepieces in terms of accuracy and precision, leveraging quartz crystal oscillators for enhanced reliability. The cost advantage has made quartz wristwatches more affordable, driving their popularity globally. Mass production of quartz movements enables cost-effective manufacturing, expanding their reach to a broader consumer base, thereby increasing market demand.

The mechanical type segment is expected to register the fastest CAGR of 10.2% in the forecast period. Mechanical watches continue to resonate with consumers due to their exceptional quality, rich history, and association with luxury. Handcrafted by skilled artisans, these timepieces boast precise engineering and attention to detail, exuding prestige and elegance. The intricate mechanics, high-quality materials, and meticulous finishing make them valuable heirloom pieces, worthy of passing down through generations, commanding a premium market position.

Category Insights

The non-luxury watches category segment led the market with a revenue share of 61.8% in 2023. The success of non-luxury watches can be attributed to factors such as competitive pricing, broad product offerings, accelerated product development, and innovative marketing strategies. In addition, the affordable price point of non-luxury watches appeals to price-sensitive consumers. To stay competitive, these brands have integrated cutting-edge features like GPS, fitness tracking, heart rate monitoring, and smartphone connectivity into their products.

The luxury watches category segment is expected to register the fastest CAGR of 10.6% in the forecast period. Segment growth is driven by factors such as the status symbol attached to high-end timepieces, innovative product development, shifts in consumer perception, and e-commerce sales. Key players in the industry continuously introduce new products with advanced features to cater to discerning consumers. Limited edition watches featuring precious materials like diamonds, sapphires, and gold further enhance their perceived value.

Distribution Channel Insights

Specialty stores dominated the market with a revenue share of 42.9% in 2023. Segment growth is primarily driven by the expertise of their staff, who can provide customers with informed advice and personalized recommendations based on their preferences. These stores also offer exclusive products, such as limited editions, collaborations with renowned designers, and in-store exclusives, setting them apart from other retailers and driving customer loyalty.

Online distribution channels are expected to register the fastest CAGR of 10.9% in the forecast period. Segment growth in the market is driven by factors such as extensive coverage, cost-effectiveness, ease of access, personalized experiences, and targeted digital marketing strategies. Online shoppers can browse a vast selection of watches, compare prices, read reviews, and make purchases from the comfort of their own homes, fostering a convenient and seamless shopping experience that has contributed significantly to the market’s expansion.

Regional Insights

The North America watches market has a significant market share in the global watches market. This can be attributed to the advancements in technology, the increased willingness of consumers towards innovative new products, the rising demand for health awareness products, the strategic positioning of luxury brands, and efforts toward setting up industry standards and making the industry sustainable.

U.S. Watches Market Trends

The U.S. watches market is expected to grow significantly in over the forecast period. Luxury watches are highly sought-after in the U.S., likely due to the increase in disposable income. Even though retail sales have remained steady, consumers with higher spending power are more inclined to invest in expensive items like luxury watches, benefiting the industry.

Asia Pacific Watches Market Trends

Asia Pacific watches market dominated the global watches market with a revenue share of 33.6% in 2023. Factors such as economic development, population size, social status associated with watches, increasing brand recognition, new product development, rise in online sales, and targeted marketing efforts contribute to the growth of the Asia Pacific watches industry. Moreover, production revenues for watch manufacturers are easily obtained since the market in countries such as China and India is vast.

China watches market is expected to grow rapidly in the coming years. The country has experienced consistent economic growth and increasing per capita income, leading to a huge market for luxury items such as wristwatches. China’s significant export numbers in the industry indicate its active participation in the global market.

Europe Watches Market Trends

Europe watches market was identified as a lucrative region in the global watches market in 2023. Europe has a long-standing tradition of watchmaking. The region is renowned for high-quality timepieces, contributing to strong global demand for European watches. European watches are undeniably classic with their sleek designs. The superior aesthetics, quality, and intricate designs have undoubtedly paid off for the Europe watches market.

The UK watches market is expected to grow rapidly in the coming years. The UK market has seen a rise in demand for luxury watches due to an increase in spending power, the emergence of a wealthier population, and a growing trend that values luxury items as status symbols. UK consumers are increasingly seeing luxury watches not just as functional items, but also as symbols of status or collectible pieces.

Key Watches Company Insights

Some of the key companies in the Watches market include The Swatch Group Ltd; Compagnie Financière Richemont SA; Rolex Watch U.S.A., Inc.; and OMEGA SA; among others. Companies prioritize innovation to differentiate themselves, leveraging advanced features and designs to appeal to brand-conscious consumers. Strategic partnerships and acquisitions drive growth amidst competitive pressures from tech giants.

• Richemont Group, officially referred to as Compagnie Financière Richemont S.A., is a Switzerland-based luxury goods enterprise. The company is driven by a commitment to craftsmanship and creativity, guiding its Maisons to design timeless creations and innovative services while maintaining their heritage.

• Rolex Watch U.S.A., Inc. is the American subsidiary of the renowned Swiss watch manufacturer, Rolex. The company serves as the official distributor and service center for Rolex watches in the U.S. Operating under the umbrella of Rolex SA, it upholds the brand’s standards of quality, expertise, and customer service in the American market.

Recent Developments

• In June 2024, the Swatch Group released The MoonSwatch Mission on Earth, a collection of three new non-limited Bioceramic watches inspired by natural phenomena visible from space. The collection included Lava, Polar lights, and Desert.

• In May 2024, CASIO COMPUTER CO., LTD. launched five new “Sky and Sea” models across its Casiotron, G-SHOCK, EDIFICE, PRO TREK, and BABY-G brands to commemorate its 50th anniversary, featuring blue and gold accents that evoke the sky and sea’s illuminating light.

Watches Market Report Scope

Global Watches Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global watches market report based on product, type, category, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Traditional Watches

  • Smart Watches

  • Hybrid Watches

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Quartz

  • Mechanical

• Category Outlook (Revenue, USD Billion, 2018 - 2030)

  • Luxury Watches

  • Non-Luxury Watches

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hypermarket & Supermarket

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia & New Zealand

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE