The global luxury watch market size is expected to reach USD 9.3 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.3% over the forecast period. Increasing consumer preference to purchase luxury watches as a style statement is expected to have a strong impact on the market growth. Furthermore, increasing importance of e-commerce portals including Amazon and Flipkart as a selling medium for providing access to limited addition watches is projected to expand the industry size over the next few years.
Increasing number of aristocratic women in Western European countries including Germany, France, and U.K. who wear intricate watches on the wrist is expected to remain a prominent trend. Furthermore, new product launches in Unisex collection by companies including Rolex, Cartier, and Tag Heuer are projected to expand the buyer reach over the next few years.
Mechanical products accounted for the largest share of more than 75.0% in 2018. Excellent durability due to presence of Titanium ceramic coatings and PVD coatings in mechanical watches is expected to maintain its lead in the near future. Key industry players that offer mechanical products include Rolex SA; A. Lange & Söhne; Apple Inc.; and The Swatch Group Ltd.
Online distribution channel is expected to be the fastest growing category as the consumers are shifting from offline to this distribution channel due to the ease of product comparison and doorstep delivery services provided by the e-commerce portals. Some of the key online retailers are Amazon, FlipKart, and Aliexpress.
Asia Pacific is expected to be the largest regional luxury watch market over the next few years. Expansion of middle class income groups in emerging economies including China, India, and Vietnam on account of urbanization and increasing number of commercial set-ups is expected to promote the use of luxury watches over the forecast period.
Some of the key players are Rolex SA; A. Lange & Söhne; Apple Inc.; The Swatch Group Ltd.; FOSSIL GROUP, INC.; CITIZEN; Seiko Watch Corporation; CASIO; and Audemars Piguet. Companies are adopting new product development strategies to get a competitive advantage in the market. For instance, in 2019, Rolex SA launched six new models such as YACHT Master 42, Sea-Dweller, Gmt Master Ii, Day Date 60, Date Just 36, and Date Just 31.
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Further key findings from the report suggest:
- Mechanical products led the market with a share of more than 75.0% in 2018
- Offline distribution channel accounted for a share of more than 85.0% in 2018
- Asia Pacific dominated the global luxury watch market in 2018 and is expected toexpand at the fastest CAGR of 4.7% over the forecast period.