The Global Luxury Watch Market size is expected to reach $53.5 billion by 2028, rising at a market growth of 5.3% CAGR during the forecast period.
Luxury watches are those that buyers see as high-end products, consisting of associations towards a high price level, aesthetics, class, rarity, excellent, and a significant amount of non-functional relationships. The product's pricing strategy, the notion that it is a high-end item, and the material it is made of are some of the motivating elements that aid in increasing sales.
As a high-end product, a luxury watch has an excellent pricing strategy that concentrates on pricing it far higher than some other varieties of watches to draw in the wealthier segments of the population. A luxury watch is also more than just a regular timepiece; it is a prestigious timepiece and is regarded as being of premium quality that is worn by extremely successful and well-respected individuals.
Additionally, it makes use of extremely rare valuable metals that are not typically found in common or budget watches. Additionally, celebrities, royalty, and well-off individuals are increasingly choosing luxury watches, elevating the value of the item in consumers' eyes and acting as one of the key driving forces influencing its wide expansion. The demand for luxury watches nowadays is also increasing because of the development of luxury smartwatches with features like the capability to track health status and connect to the internet.
Due to the luxury watch's widespread perception as a display of riches and a mark of great status, it increases consumer interest in the product and encourages more sales. In addition, the demand is being propelled forward by the rising popularity of luxury timepieces for women. This is a result of the rise in the proportion of women with high incomes and the rising level of living.
During the Covid-19 outbreak, the demand for expensive timepieces skyrocketed. Luxury watch sales, both new and used, have increased dramatically over the last year, and this trend is expected to continue. All prices have increased as a result of the escalating demand. The average price per lot has increased by more than a third in Geneva and more than half in Hong Kong, according to an evaluation of the Phillips watch auction statistics. Therefore, the pandemic had a mixed impact on the luxury watch market as the secondhand market expanded while the supply chain obstructions hindered the growth of the market.
The watch industry is flourishing due to men's preference for luxury items, particularly watches. Some of the causes that contribute to the rise in demand for luxury watches include the increase in brand recognition, the impact of Westernization, and the natural demand for exclusivity. Luxury watches are also being made to incorporate smart features. The preloaded features on these watches include daily activity tracking, smart notifications, built-in music storage, and built-in storage for payments. They also have sensors for the pulse oximeter and heart rate at the wrist.
For some people, collecting watches is a passion that offers both chances and difficulties. Like clocks, watches are available in a variety of sizes and forms. The different make, brand, time, and finish of watches attract consumers to possess more than one, which ultimately has turned into a hobby for many. Consumers want to hold a watch that has a strong emphasis at least once like acquiring a pocket watch belonging to the era of Abraham Lincoln to a watch that went into space. For most collectors, collecting watches is a timeless and rewarding hobby that can last a lifetime.
Similar to any other luxury object, counterfeit watches can and do exist and is a significant industrial issue that costs businesses billions annually. Identifying a fake watch is dependent on design inconsistencies. A misspelled name or inappropriate branding may indicate a fake product. It is necessary to ensure that all components of the watch are crafted from superior materials, such as gold and diamonds. Or else, the components may be made of inexpensive materials such as plastic. This makes them appear low-grade and contradictory with the customary quality requirements for premium timepieces.
Based on product, the luxury watch market is categorized into electronic and mechanical. The mechanical segment procured a significant revenue share in the luxury watch market in 2021. This kind of luxury watch is preferred by a sizable business-class population since it may be worn as a fashion statement. The longevity of mechanical luxury watches is increased by using PVD and titanium ceramic coatings. A mainspring, which further serves as a power source for mechanical wristwatches, is wound mechanically or powered by a rotor that rotates in response to wrist movements.
On the basis of distribution channel, the luxury watch market is divided into offline and online. The offline segment witnessed the largest revenue share in the luxury watch market in 2021. The increased consumer desire for buying high-end products through retail outlets is the main element boosting the expansion of this market. Additionally, it is now simple for customers to comprehend the precise dimensions and weight of a product while purchasing it through offline channels like supermarkets, convenience stores, and company-owned retail outlets.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 37.6 Billion |
| Market size forecast in 2028 | USD 53.5 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 5.3% from 2022 to 2028 |
| Number of Pages | 142 |
| Number of Tables | 240 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Product, Distribution Channel, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on region, the luxury watch market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment acquired the maximum revenue share in the luxury watch market in 2021. The factors driving the market expansion in Asia Pacific were shifting consumer behaviour and rising disposable income. Because they are aware of the market's potential, international luxury companies are expanding into nations like China, Japan, and India. The presence of important actors, a high per capita income, and the rising prestige of the upper middle class in the region has increased the demand for luxury watches.
Free Valuable Insights: Global Luxury Watch Market size to reach USD 53.5 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Apple, Inc., Fossil Group, Inc., LVMH SE, Ralph Lauren Corporation, Rolex SA, Citizen Watch Co., Ltd., Seiko Watch Corporation, Compagnie Financiere Richemont SA, Movado Group, Inc. and The Swatch Group Ltd.
By Product
By Distribution Channel
By Geography
The global Luxury Watch Market size is expected to reach $53.5 billion by 2028.
Increasing demand for luxury watches among the younger populace are driving the market in coming years, however, High prices of luxury watches and the available possible counterfeits restraints the growth of the market.
Apple, Inc., Fossil Group, Inc., LVMH SE, Ralph Lauren Corporation, Rolex SA, Citizen Watch Co., Ltd., Seiko Watch Corporation, Compagnie Financiere Richemont SA, Movado Group, Inc. and The Swatch Group Ltd.
The expected CAGR of the Luxury Watch Market is 5.3% from 2022 to 2028.
The Electronic market is leading the Global Luxury Watch Market by Product in 2021; thereby, achieving a market value of $36.6 Billion by 2028.
The Asia Pacific market dominated the Global Luxury Watch Market by Region in 2021; thereby, achieving a market value of $23.5 Billion by 2028.
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