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The Global Watch Market size is estimated to increase by USD 9.62 billion between 2022 and 2027. The size of the market is forecasted to grow at a CAGR of 2.62%. Market expansion hinges on various factors, notably the increasing appetite for premium watches, celebrity endorsements, and the burgeoning population of fashion-savvy consumers. However, challenges persist, such as the prevalence of counterfeit goods, prolonged product life cycles, and limited product awareness in emerging markets. The rising desire for high-end watches plays a pivotal role in propelling market growth. Businesses within the fashion, accessories, and luxury industries are ramping up their research and development activities to stay competitive and foster innovation. This commitment leads to significant advancements in product offerings, marking a trend towards premiumization marked by improved technologies, functionality, features, and aesthetics. Consumers show a distinct inclination towards watches with premium designs, prompting companies to adapt by innovating and broadening their range of products accordingly.
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The market share growth by the quartz segment will be significant during the forecast period. The high market share and adoption rate of quartz watches can be attributed to their low cost when compared to mechanical ones. Quartz ones are available in both digital and analog modes. Analog ones account for a majority share of the quartz segment.
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The quartz segment showed a gradual increase in the market share of USD 42.74 billion in 2017 and continued to grow by 2021. Evolving fashion trends and an increase in disposable household incomes will propel the growth of the market. The rising number of new product launches will also drive market growth. Manufacturers are introducing high-end quartz ones with advanced technologies. For instance, in November 2022, Citizen launched Citizen Promaster Skyhawk A-T Blue Angels with Eco-Drive power, which allows them to function for 6 months on a full charge when kept away from a light source. Hence, new product launches and growing technology are expected to propel the growth of the market during the forecast period.
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APAC is estimated to account for 54% of the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market is mainly attributed to the introduction of global brands and products and the rising adoption of premium ones. The rising disposable income and the changing customer preferences will increase the demand in APAC during the forecast period. China, Hong Kong, Japan, and India are the key contributing countries in the region. The penetration is high in APAC in terms of volume sales when compared to other regions. Urbanization and improved distribution channels have further encouraged global companies to expand their businesses in APAC. The market in APAC is witnessing a rapid increase in the presence of international players, coupled with their rising promotional activities and advertising campaigns. These factors are expected to support the growth of the market in the region during the forecast period.
The market is undergoing a transformation driven by several key factors. Personalization, craftsmanship, and brand value are at the forefront, catering to the evolving preferences of consumers. The emergence of smartwatches has revolutionized the industry, offering fitness tracking, notifications, and seamless smartphone integration, appealing to sports and fitness enthusiasts, as well as health-oriented consumers. High-quality raw materials and advanced production technologies ensure the creation of exquisite timepieces.
Both physical retail stores and online retailers, including brand boutiques and e-commerce platforms, play significant roles in distributing watches to consumers worldwide. The demand for vintage designs and sustainable materials is on the rise, attracting attention from watchmakers, celebrities, and fashion brands alike. Innovations such as Garmin's MARQ series, featuring titanium exteriors and advanced monitoring functionalities like music control, walk tracks, heartbeat rates, and body composition monitoring, including BMI and BMR, are reshaping the market landscape.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surge in demand for premium watches is a primary driver fueling the expansion of the market. Companies operating within the apparel, accessories, and luxury goods sectors are intensifying their research and development endeavors, aiming for innovation to thrive amid competitive landscapes. These efforts result in major product innovations, ushering in a wave of premiumization characterized by advancements in technologies, performance, features, and designs. Consumers exhibit a preference for watches boasting premium designs, prompting companies to innovate and diversify their product portfolios accordingly.
Moreover, heightened consumer spending on fashion accessories, fueled by increasing purchasing power and disposable income, further amplifies the demand for premium fashion accessories. Companies respond by offering meticulously crafted, durable products, contributing to the ongoing trend of product premiumization. Consequently, the convergence of increasing product premiumization and rising consumer expenditure on fashion accessories is poised to drive substantial value sales within the global market throughout the forecast period.
Enhanced vendor engagement through social media and other entertainment channels is a key trend influencing the market. Social media platforms, such as Facebook, Twitter, LinkedIn, WhatsApp, and YouTube, are being used by companies to promote their products. companies are using social media analytics tools to analyze their brand performance and audience reach. For instance, Titan uses Simplify 360, a social media analytics tool, to measure the performance of its flagship brands and analyze its audience reach and competitive position on different social media channels.
Several manufacturers are entering into entertainment media partnerships for product marketing. For instance, an upcoming series of James Bond movies feature the Seamaster 300M 007 Edition watch by OMEGA, a brand of Swatch. Thus, the promotion through social media and other digital platforms is expected to drive the growth of the global market during the forecast period.
The presence of counterfeit products may impede market growth. Counterfeit products infringe the intellectual property rights of established brands by selling products with similar trademarks, brand names, and logos. Companies face difficulties in competing with and taking legal action against the manufacturers of counterfeit products. This affects the businesses of genuine companies.
Most luxury brands offer limited-edition or special-edition products. However, their brand image is affected by the presence of counterfeit products. The market for counterfeit products is growing rapidly, led by their low production cost and high-profit margins. APAC is a major market for counterfeit products due to weak regulations and standards. Thus, the sales of counterfeit products are hindering the growth of the global market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a dynamic landscape influenced by a multitude of factors and trends. It thrives on personalization, craftsmanship, and brand value, catering to a diverse consumer base ranging from sports and fitness enthusiasts to health-oriented individuals. Smartwatches have revolutionized the industry with fitness tracking, smartphone integration, and notifications, appealing to the modern working population seeking health monitoring gadgets. Brands like Garmin and Samsung offer cutting-edge features like body composition monitoring and music control, leveraging advanced technologies like GPS and ECG support. Eco-friendly materials and vintage-inspired designs are gaining traction, alongside luxury watches from iconic brands like Rolex. With online and offline retail channels, the market offers a wide range of options across different price segments, ensuring accessibility and exclusivity in line with Western trends.
The market is experiencing a significant transformation driven by health-oriented consumers seeking high-quality raw materials and advanced production technologies. With the rise of online retailers, brand boutiques, and e-commerce platforms, consumers have access to a wide array of options, including vintage designs and watches made from sustainable materials. Watchmakers are introducing new products like the MARQ series, featuring titanium exteriors and monitoring functionalities such as tracking walk routes, heartbeat rates, BMI, BMR, and bone density. This aligns with the growing health awareness among consumers, leading to increased spending on health and fitness features integrated into watches, including optical heart rate sensors and eco-friendly strap materials made from recycled materials like ECONYL yarn. The Swiss watch industry, renowned for its luxury market, competes with brands like Rolex, particularly in locations such as Heathrow Airport's luxury watches and jewelry category. With the rising popularity of smartphones and smartwatch market, fitness and yoga apps, and standalone fitness and tracker apps, the watch market caters to various consumer segments, including the middle-class income group, albeit with some limitations in functionality and screen size.
Watch Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.62% |
Market growth 2023-2027 |
USD 9.62 billion |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
2.02 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASOROCK Watches LLC, Breitling SA, CASIO Computer Co. Ltd., Citizen Watch Co. Ltd., Compagnie Financiere Richemont SA, Daniel Wellington AB, DIFFUSIONE ITALIANA PREZIOSI S.P.A, Fossil Group Inc., Le petit fils de L.U. Chopard and Cie SA, LVMH Moet Hennessy Louis Vuitton SE, Magnus Brand, Movado Group Inc., Patek Philippe SA, Ralph Lauren Corp., Rolex SA, Seiko Holdings Corp., SUED Watches, Talley and Twine Watches LLC, The Swatch Group Ltd., and Titan Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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