Watch Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2023-2027

Watch Market Forecast 2023-2027

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.

Watch Market Forecast and Growth

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What are the Fastest-Growing Segments in the Market?

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. 

Which are the Key Regions for the Market?

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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. 

Market Dynamics and Customer Landscape

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.

Key Market Driver

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.

Significant Market Trend

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.

Major Market Challenge

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. 

Key Market Customer Landscape

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 

Who are the Major Watch Market Companies?

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.

• Breitling SA - The company offers a wide range of watches such as SuperOcean, Navitimer, Top Time, and Chronomat, for men and women.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ASOROCK Watches LLC
• 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.
• Titan Co. Ltd.

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.

Segment Overview

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.

• Product Outlook 
  • Quartz
  • Mechanical

• Distribution Channel Outlook 
  • Offline
  • Online

• Region Outlook 
  • North America
    • The US
    • Canada
  • Europe
    • The UK
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East and Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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