In 2022, the worldwide luxury watches industry was valued at approximately $29.19 billion, with a growth rate of 0.5% since 2017. Projections indicate that the market will increase to $37.29 billion by 2027, growing at 5.0% and further reaching $50 billion by 2032 with a 6.0% CAGR from 2027. Historical growth can be attributed to economic expansion in emerging markets, e-commerce growth, increasing high-income women, and a surge in international trade.
In the future, urbanization, internet and social media usage, and Swiss watch exports will propel the market. However, workforce shortages, global interest rate hikes, and the Russia-Ukraine conflict might pose challenges.
The market is categorized by watch type, distribution channel, and end user. Analog watches dominated in 2022, holding 74.3% of the market. However, digital watches are predicted to grow the fastest at a 6.0% CAGR from 2022-2027. In terms of distribution, multi-brand stores led in 2022 with 44.9%, but online channels are anticipated to grow the quickest at a 6.2% CAGR from 2022-2027. Men were the primary consumers in 2022, accounting for 62.4%, but the women’s segment is expected to grow the fastest with a 5.2% CAGR from 2022-2027.
Geographically, Western Europe was the leading region in 2022, holding 29.4% of the market. However, North America and Eastern Europe are projected to be the fastest-growing regions with CAGRs of 27.4% and 24.2%, respectively. The Middle East and South America are also expected to see significant growth.
A few major players dominate The luxury watches sector, with the top ten accounting for 86.64% in 2021. Rolex led the market with 24.22%, followed by companies like Apple, Compagnie Financiere Richemont, and Swatch Group. Opportunities in the market are abundant, especially in the analog watch, multi-brand store, and men’s segments. The U.S. market is predicted to see the most substantial gain, adding approximately $1.69 billion.
For market players, strategies revolve around technological advancements, luxury smartwatch launches, AI integration, product innovations, and strategic alliances. They are also focusing on expanding partnerships, launching advanced products, fostering collaborations and mergers, driving innovation, and introducing new watch line-ups to enhance their market presence.