The luxury watches market was valued at $43,661.8 million in 2019, and is estimated to reach $51,317.3 million by 2027, registering a CAGR of 4.50% from 2021 to 2027. There is no official definition of luxury watch, but it is considered to be in the price range of $1,200 and more. Further, it signifies the status symbol of people. The common attributes of luxury watches are limited availability, social distinction, exclusivity, exceptional quality, and high prices. Surge in number of high net-worth individuals, rise in disposable income, and increase in spending on premium quality products are some of the factors driving the growth of the global Luxury Watches Market during the forecast period.
Based on the analysis of the COVID-19 pandemic, people are facing huge losses in their business and temporary stagnation in export and import activities, which negatively impacted the growth of the market in 2020. Growing vaccination and lockdown practices across the world to stop the spread of the virus are expected to help the Luxury Watches Market to regain its position in the luxury goods industry.
However, fraudulent and counterfeit luxury watches are badly impacting the growth of the Luxury Watches Market. Counterfeit watches are sold in online store, which not only affects the innocent buyer but also original luxury watch manufacturing companies who incur huge losses and might lose trust of consumers.
The luxury watches market is segmented into type, end user, distribution channel, and region. On the basis of type, the market is categorized into mechanical watches and electronic watches. By end user, it is segregated into men and women. According to distribution channel, it is divided into online store, single brand store, and multi brand store. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Switzerland, Russia, Spain, Italy, France, Germany, the UK, and Rest of Europe), Asia-Pacific (China, Japan, Hong Kong, India, Singapore, South Korea, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
On the basis of type, the mechanical watches segment has gained major share in the global luxury watches market 2019, and is expected to sustain its market share during the forecast period 2021-2027. Luxury mechanical watches are majorly preferred over electronic watches as they are more complicated, incorporating all the expertise and knowledge of watchmaking of the 20th century. Luxury mechanical watches have much larger number of tiny moving parts inside and require hours and hours of painstaking labor to make. It is an impressive piece of machinery with mechanical achievement in an analog world. Most luxury mechanical watch buyers are discerns, and thus the buyer cares about the tiny details, one that appreciates history and heritage.
By Type
Mechanical Watches segment helds the major share of 75.4% in 2019
According to luxury watches market trends, depending on end user, the women segment was valued at $23,740.4 million in 2019, and is expected to reach $26,710.5 million by 2027, with a CAGR of 3.90%. American women are hardcore into the engineering side of how watch movements work as opposed to Asian and European consumers who have more of a cultural appreciation for watches. Women are more inclined to diamond embedded gold watches; hence, many luxury watchmakers are focusing on making golf or diamond watches. Growing working women are majorly attributable for the growth of the Luxury Watches Market during the forecast period.
By End User
Women segment helds the major share of 54.4% in 2019
On the basis of distribution channel, the multi brand store segment was valued at $19,184.1 million in 2019, and is projected to reach $20,537.8 million by 2027, registering a CAGR of 3.30%. The multi brand store segment accounted for around one-third of the global Luxury Watches Market share in 2019, and is expected to sustain its share during the forecast period. Multi brand stores sell more than one luxury watch brands, which can facilitate consumers to explore their choices with multiple models of different brands. Luxury watch manufacturing companies majorly prefer to sell their products through multi brand stores, owing to high sales growth and high scope of advertisement and promotion. These stores operate through online and offline. Therefore, due to internet proliferation and rise in preference for e-commerce platform, multi brand online stores have been gaining significant momentum.
By Distribution Channel
Multi Brand Store segment helds the major share of 43.9% in 2019
Region-wise, Europe dominated the Luxury Watches Market in 2019, and is expected to sustain its dominance over the forecast period. This is majorly attributed to the presence of global operations of luxury goods, including luxury watch manufacturing companies, which benefits local consumers who can get luxury watches considerably at lower price. For instance, the Swatch Group Ltd. and LVMH Moet Hennessy -Louis Vuitton SE are based in Switzerland and France, respectively, wherein the respective countries can buy their home-grown companies’ watches at a lesser price.
By Region
Europe region helds the higest market share of 41.1% in 2019
The players operating in the global luxury watches market have adopted various developmental strategies to expand their Luxury Watches Market share, increase profitability, and remain competitive in the market. The key players profiled in this report include CASIO Computer Co. Ltd., Citizen Watch Co. Ltd., Compagnie Financière Richemont SA, Fossil Group Inc., LVMH Moet Hennessy -Louis Vuitton, Movado Group Inc., Patek Philippe SA, Rolex SA, Seiko Holdings Corp., and the Swatch Group Ltd.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assist to determine the prevailing Luxury Watches Market opportunities.
- The major countries in each region are mapped according to their revenue contribution to the market.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the luxury watches industry.
Key Market Segments
By Type
- Mechanical Watches
- Electronic Watches
By End User
- Men
- Women
By Distribution Channel
- Online Store
- Single Brand Store
- Multi Brand Store
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Switzerland
- Russia
- Spain
- Italy
- France
- Germany
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- Hong Kong
- India
- Singapore
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Luxury Watches Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By END USER |
|
 By DISTRIBUTION CHANNEL |
|
 By Region |
|
 Key Market Players | The Swatch Group Ltd., .Movado Group, Inc., Seiko Holdings Corp., Citizen Watch Co. Ltd., Patek Philippe SA, LVMH Moët Hennessy - Louis Vuitton, Compagnie Financière Richemont SA, .Rolex SA, CASIO COMPUTER CO., LTD., Fossil Group Inc. |
Analyst Review
According to the CXOs of leading companies, the global Luxury Watches Market exhibits high growth potential in developing economies such as Japan, China, and India, owing to increase in personal disposable income and high spending for luxurious lifestyle. Increase in high net worth individuals and fast emerging economies, such as China and India, facilitate to increase the wealth of the people, thereby increasing the demand for luxury goods, including watches. Rise in number of millionaires and their wealth is attributed to dynamic changes in business environment and technological disruptions, including Internet of Things. In addition, the COVID-19 pandemic has led to growth of the Internet of Things and healthcare sectors. For instance, according to Zhong Huijhan, founder and CEO of Hansoh Pharmaceutical Company, the pandemic boosted the wealth of healthcare executives holding shares in drug and medical device companies developing coronavirus vaccines and therapeutic drugs, which directly impacted the luxury goods and Luxury Watches Markets.
The Asia-Pacific region has been witnessing surge in demand for luxury goods, which is expected to be sustained during the forecast period, owing to the presence of fastest-growing economies. Growing billionaire wealth in the region further favors the growth of the market. According to report published by UBS public company incorporated under the laws of Switzerland, In 2018, the billionaire wealth of Mainland China was valued at $134.9 billion and increased to $1,680.9 billion in 2020.
However, fraudulent & counterfeit luxury watches and limited customer base are the major challenges for the growth of the Luxury Watches Market. Fake luxury watches not only result in losses to innocent buyers but also affect the image of the brand and decrease brand loyalty.
The luxury watch market was valued at $43,661.8 million in 2019, and is estimated to reach $51,317.3 million by 2027, registering a CAGR of 4.50% from 2021 to 2027.
CASIO Computer Co. Ltd., Citizen Watch Co. Ltd., Compagnie Financière Richemont SA, Fossil Group Inc., LVMH Moet Hennessy -Louis Vuitton, Movado Group Inc., Patek Philippe SA, Rolex SA, Seiko Holdings Corp., and the Swatch Group Ltd. Are some of the top companies in the luxury watch market.
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The CAGR of luxury watch market is 4.50%
The luxury watch market is segmented into type, end user, distribution channel, and region.
The forecast period is 2021-2027.
Europe region holds the maximum market share of the Luxury Watch Market.
COVID-19 pandemic negatively impacted the growth of luxury watch market in 2021.
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