The global luxury watch market was valued at USD 7.52 billion in 2021. It is projected to reach USD 12.24 billion by 2030, growing at a CAGR of 5.56% during the forecast period (2022–2030). Consumers consider luxury watches high-end products when they meet specific criteria, including a high price, class, aesthetics, rarity, outstanding, and a sizable number of purely aesthetic relationships. Some of the motivating factors that help to boost sales include the product's pricing strategy, its status as a high-end item, and the material. Luxury watches are more than just regular watches; they are prestigious timepieces of high regard and regarded as being of premium quality worn by highly successful and well-respected individuals. It also uses rare precious metals not typically found in ordinary or inexpensive watches. Additionally, celebrities, royalty, and well-off individuals are increasingly choosing luxury watches, elevating the item's value in consumers' vision, and acting as one of the fundamental driving forces behind the market's expansion.
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One of the major factors backing the demand for handcrafted luxury watches worldwide is the new trend of using high-end clothing as a status symbol. Additionally, the demand for specialized, expensive watches is driven by the rise in the number of people participating in professional scuba diving. These watches have water-resistant construction and corrosion-resistant components that are useful for divers. Furthermore, due to the complexity of aviation, pilots are increasingly using high-end watches explicitly designed to aid in mid-flight calculations for things like wind correction angle and fuel consumption.
The market is expanding due to the accessibility of luxury watches in distinctive materials, dial colors, strap designs, and themes. In addition, many industry participants are selling used luxury watches through online retailers at a discount. The growing acceptance of used luxury goods, particularly among young people, is due to their accessibility and affordability. These players also spend money on promotional initiatives like celebrity endorsements to draw in a sizable customer base.
Introducing a new class of opulent watches that features pricey and rare components like a diamond, ruby, gold, and sapphire in the timepiece's casing presents a vast opportunity that fosters the market's growth. Nevertheless, because they only target the wealthy segment of the population, lower and middle-class income earners are being repealed by their pricing strategy. This is one factor that acts as a restraining factor that hinders the market's growth.
Connecting smartphones and smartwatches via Bluetooth, GPS, a distance tracker, and a health tracker is likely to continue to be some of the most attractive features. The smartwatch market has also been driven by the widespread use of electronics worldwide. These products are also becoming more popular because they can work with iOS and Android operating systems. The growing popularity of these smartwatches will likely make people less interested in luxury watches since they have good features for people who care about fitness.
The global luxury watch market is segmented by product and distribution channel.
Based on product, the market is divided into mechanical and electronic.
The mechanical segment holds a significant market share and will dominate during the forecast period. This is preferred by a large portion of the business class because it can be used as a fashion statement. Using titanium ceramic and PVD coatings extends the lifespan of mechanical luxury watches beyond conventional products. Electrical products are anticipated to experience the highest CAGR growth during the forecast period. The firms are expanding their offerings of smartwatches with advanced features such as heart rate monitors, GPS capabilities, and multisport tracking.
Based on the distribution channel, the market is bifurcated online and offline.
The majority of the global revenue is generated through offline channels. This segment's growth is primarily attributable to the growing consumer preference for purchasing luxury goods from retail stores. In addition, offline channels, such as convenience stores, supermarkets, and company-owned brand retail locations, make it simple for consumers to comprehend the exact size and weight. The online channel is anticipated to grow shortly due to good value-added services such as cash-on-delivery, convenient return policies, secured transactions, and integrated and centralized customer services.
The global luxury watch market is segmented into North America, Europe, Asia Pacific, and LAMEA.
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The Asia-Pacific region is anticipated to grow quickest and dominate the market during the forecast period. The market is expected to increase due to shifting consumer behavior and rising disposable income, particularly in developing nations like China and Japan. Global luxury brands are expanding into countries like Japan, China, and India as they see the potential in the market.
Europe is expected to grow at a rapid rate during the forecast period. In developed economies such as Germany, France, Switzerland, the Netherlands, and the United Kingdom, there is an expectedly high concentration of buyers who prefer products with distinctive qualities and brand value. The Swiss watchmakers have maintained a substantial market share in this region.
The global luxury watch market’s major key players are Rolex SA; A. Lange & Söhne; Apple Inc.; The Swatch Group Ltd.; Bernard.; FOSSIL GROUP, INC.; CITIZEN; Seiko; CASIO; and Audemars Piguet.
March 2022- A. Lange & Söhne presented four new watches at this year's Watches and Wonders fair. The RICHARD LANGE MINUTE REPEATER is a homage to classic precision watchmaking. The third model in the ODYSSEUS line is the first Lange watch with a case and bracelet made of titanium. And the GRAND LANGE 1, available in white or pink gold with a grey dial, shows how a classic design can be carefully developed while making it even more elegant.
June 2022- WatchOS 9 delivered new ways to stay connected, active, and healthy. Introduced more customizable watch faces, an enhanced Workout app, sleep stages, a first-of-its-kind AFib History feature, and an all-new Medications app.
June 2022- To mark the date of the creation of the Tourbillon by Abraham-Louis Breguet, the brand unveiled its latest model from the Tradition collection: a timepiece featuring intense colors highlighting what has remained – from past to present – one of the fascinating horological complications of all times.