The lure of luxury leading to heavy patronisation of high-end wristwatches
Premium materials such as steel, bi-metallic and precious metals are often associated with luxury and high-end products
Innovation of luxury smartwatches with advanced features to monitor health conditions such as heart rate, blood and oxygen levels, sleep, and physical activity tracking is another significant factor strengthening the market growth
The watches market generated revenue of $79.81 bn globally in 2024. According to projections, the market is expected to experience an annual growth rate of 3.52% (CAGR 2024-2028), according to Statista Market Forecast.
The luxury watch market size is estimated at $51.31 billion in 2024 and is expected to reach $68.17 billion by 2029, growing at a CAGR of 5.84% during the forecast period (2024-2029), according to Mordor Intelligence.
This market is experiencing a surge in demand as high-end wristwatches are seen as status symbols and interest in deluxe chronometers grows. These premium timepieces, often handcrafted from superior materials, offer practical benefits like durability and corrosion resistance.
The market is further bolstered by innovative, upscale smartwatches with advanced health monitoring features. However, the proliferation of counterfeit luxury goods threatens opulent horologe manufacturers.
Consumers worldwide are inclined towards quality products made with highly advanced production technologies, materials, and methods. Premium materials such as steel, bi-metallic and precious metals are often associated with luxury and high-end products and can add perceived value to a watch. Moreover, these materials offer benefits like durability, scratch resistance and corrosion resistance, which can further enhance the attractiveness of the product. Thus, the growing consumer preference for high-quality, premium watches, perceived as status symbols, is the major driving factor for the luxury watches market.
In addition, the innovation of luxury smartwatches with advanced features to monitor health conditions such as heart rate, blood and oxygen levels, sleep, and physical activity tracking is another significant factor strengthening the market growth. As a result, manufacturers are introducing new luxury smartwatches in the global market.
Looking ahead to 2024, non-luxury brands are expected to account for 61% of sales in the watches market. Despite the rise of smartwatches, Switzerland continues to dominate the luxury watch market worldwide.
Planning to maintain a record of your fitness activities and answering calls or messages on your wrist? Well, these are just a few of the many functions that smartwatches can perform as wearable devices combining the functionalities of smartphones and fitness trackers. Indeed, smartwatches are among the most popular wearables, with new and advanced models always coming to the market.
In 2024, the global smartwatch market was forecast to generate revenue of almost $50 billion, a value expected to increase in the future. The smart watch revenue growth was 8.6% and the shipments worldwide in 2024 were estimated to be 177 million.
Personalisation, craftsmanship and brand value play pivotal roles in purchasing decisions. Consumers are increasingly using smartwatches due to their unique looks and multifunctional features.
Smartwatches have features like fitness tracking, notifications and smartphone integration. Owing to this, sports and fitness enthusiasts and health-oriented consumers are using smartwatches to track their daily health status.
The market players use high-quality raw materials and production technologies to produce durable and sustainable watches. Watches are sold through various channels, including physical and online retailers and brand boutiques. E-commerce has grown significantly over the past few years as online shopping is gaining consumer recognition. The market players have shopping websites and collaborate with third-party retailers like Amazon, Flipkart, Alibaba, eBay, and others to increase sales.
Recently, the revival of vintage designs, the integration of sustainable materials, and collaborations between watchmakers and celebrities or fashion brands have grown, boosting the market growth.
The market players are launching new products to cater to the growing demand. For instance, in October 2022, luxury smartwatch maker Garmin released its latest collection of luxury smartwatches, the MARQ series. The new Garmin MARQ collection of luxury smartwatches comes with pricing on the high end of the spectrum and a titanium exterior, according to Mordor Intelligence.
Consumer demand for smart wear and luxury watches is increasing in the region due to rising disposable income and sports participation. The watch has become a style statement, so the use of high-quality watches is increasing. The demand for women's watches is growing in the region with the expanding female workforce.
The female population is opting for smartwatches as well as luxury watches. Owing to this, the market players are launching new products
Additionally, online retail channels, such as Amazon, Flipkart, and eBay, provide attractive discounts on watches, influencing the demand for luxury and smartwatches in the region.
The watch market is highly competitive, with the presence of both global and domestic players. Some of the major players in the market include Seiko Holdings Corporation, The Swatch Group, Casio, Fossil Group Inc., and Rolex.