Report

Global luxury watch market size was valued at USD 35.89 billion in 2023, expected to reach USD 54.27 billion in 2031, with a CAGR of 5.31% for the forecast period between 2024 and 2031. The market for luxury watches is a vibrant industry defined by elegance, tradition, and creativity. As consumer preferences changed, luxury brands turned their attention to integrating smartwatches. Watchmakers and tech companies working together highlight the trend. Generally used as a companion device, a smartwatch pairs with a smartphone via Bluetooth, Near-field Communication (NFC), and other protocols.
Sophisticated collectors are drawn to limited editions and custom designs. Concern over sustainability is growing, as brands emphasize using ethical materials and practices. Well-known luxury brands pay close attention to customer feedback and maintain a certain level of consistency in the quality of their products. It aids in the brand name's development. Also, luxury watch promotions heavily rely on word-of-mouth advertising.
Premium components that can raise the perceived value of a watch include steel, bi-metallics, and precious metals. These materials are frequently connected to luxury and high-end goods. Additionally, these materials frequently provide useful qualities like toughness, resistance to stains, and resistance to corrosion, which can increase the watch's appeal to buyers. Furthermore, providing watches in a range of price points can enable a larger number of customers to afford high-quality timepieces.
In 2022, the exports of Swiss watches hit a record-breaking value of USD 28.30 billion. However, in terms of volume, 15.8 million watches were shipped as part of these exports.
Limited-edition Launches Fuel the Demand
In luxury watch business, limited-edition releases are a powerful tactic that creates a sense of exclusivity and increase demand. Brands create a sense of rarity by limiting the production of some models, which appeals to enthusiasts and collectors who are keen to own a one-of-a-kind watch. As these editions are limited, customers feel compelled to act quickly. The uniqueness raises the watch's perceived value and builds a relationship between the brand and its customers as they are excited to be one of the few people who own a unique piece. Consequently, in the world of luxury timepieces, limited editions have become sought-after markers of exclusivity and status.
For instance, in November 2023, German watchmaker Braun and British fashion house Paul Smith collaborated and launched two limited editions of Braun's BN0279, Swiss-made automatic watches. The collection is a limited edition with 100 pieces available from each. Additional features include sapphire glass that resists scratches and 5ATM water resistance. Along with an image showing the number in the limited edition that can be owned; the back of the watch has glass that displays the movement.
Customization Options Allow Expansion in the Market
Luxury watch brands that offer customization options capitalize on consumers' desire for uniqueness and custom experiences. Brands that enable customers to customize their timepieces establish a distinctive bond with customers who appreciate exclusivity. Custom features, such as dial designs and case materials, accommodate a range of tastes and promote a feeling of self-expression and ownership. The personalization makes each watch a unique work of art and strengthens the emotional bond between the customer and the brand. The strategy appeals to discriminating clients looking for unmatched, entirely personalized luxury experiences in a market where customization is highly valued.
For instance, in January 2023, LVMH Moet Hennessy Louis Vuitton-owned brand, TAG Heuer, launched the new Aquaracer Professional 200 Solargraph driven by a solar movement. The enhanced Aquaracer series is gaining prominence due to its durability and portability. The Solargraph movement by TAG Heuer has become well-known for utilizing solar energy, which is an endlessly renewable and sustainable energy source. Through its solargraph mechanism, the watch's battery can be charged for whole day by exposing it to the sun for hardly 2 minutes and it can last up to six months after charging sunlight for not more than twenty hours.
Digital And Tracking Applications Act as a Modern Need
Luxury watch market is majorly driven by the integration of digital and tracking applications. High-end watch companies use digital technology to improve user experiences by providing features like smartphone connectivity, health tracking, and smartwatch functionality. These apps suit the changing tastes of tech-savvy customers in addition to offering practically useful benefits. Luxurious timepieces become more useful when equipped with features like personalized data access, notifications, and health metrics monitoring. These digital innovations help brands project a more contemporary image, drawing in a wider audience and guaranteeing that the sector stays at the forefront of technological developments, which in turn stimulates consumer demand and market expansion.
For instance, in June 2022, the Gen 6 Hybrid Smartwatch from Fossil was released in India. The goal of the smartwatch series was to blend the functionality of smartwatches with the conventional watch's design language. A new SpO2 sensor, Bluetooth 5.0 LE, Alexa support, and other features were included.
Luxury Watches Serve as Powerful Fashion Statements
Luxury watches serve as powerful fashion statements, driving demand by symbolizing refinement and status. Beyond timekeeping, these timepieces are coveted accessories that accentuate personal style and convey sophistication. Wearing a luxury watch communicates a commitment to craftsmanship and elegance, making it a defining element of one's overall fashion ensemble. Iconic brands and distinctive designs become enduring symbols of taste and social standing, influencing consumer choices. The allure of making a statement through a meticulously crafted, high-end watch elevates it from a functional item to a timeless expression of individuality, contributing significantly to the ongoing appeal and market prominence of luxury timepieces.
In June 2023, the Unique Gerald Genta Only Watch 2023, with a display that uses jumping hours and retrograde indications, was introduced by Gerald Genta, in collaboration with the charitable organisation, Only Watch. With Mickey dancing and holding a birthday cake to celebrate the 100th anniversary of Disney, the picture is as playful as it walks. Mickey's retrograde minute hand resets to zero at the end of every hour, precisely at that moment when the jumping hour changes to the window at 3 o' clock. At nine in the morning is when the minute repeater pusher is activated.
Impact of COVID-19
The COVID-19 pandemic altered the dynamics of the luxury watch market in several ways. New model availability was initially impacted by supply chain disruptions and production slowdowns in the industry. During lockdowns, physical store closures caused a spike in online sales, which prompted brands to improve their online presence.
Also, the focus of consumers was shifted towards essentials, leading to a temporary decline in discretionary spending, which in turn affected luxury purchases. Demand for expensive watches, decreased while economic uncertainty persisted. Travel restrictions had an additional negative effect on duty-free sales, which impacted a crucial sales channel for luxury watches.
As companies adjusted and began focusing on virtual launches, e-commerce, and interesting digital marketing techniques, the resilience began. Exclusive releases and limited editions kept their appeal, and some companies used charity to support pandemic relief efforts.
Key Players Landscape and Outlook
Important players in the luxury watch business display a varied terrain of legendary heritage and progressive innovation. Swiss behemoths, such as Rolex and Omega, continue to define the height of luxury and artistry, establishing benchmarks for the sector. Connoisseurs continue to be drawn to Patek Philippe because of its reputation for intricate complications.
Other than Switzerland, two strong competitors that combine traditional craftsmanship with unique design philosophies are Lange Uhren GmbH from Germany and Fossil Group, Inc. from the United States. There is a clear collaboration between tech companies; the TAG Heuer Connected series is a prime example of how luxury and smartwatch technology meet. In the meantime, classic labels like Jaeger-LeCoultre place a strong emphasis on classic style.
In August 2023, Rolex decided to buy Bucherer to maintain the two companies' long-standing collaboration and to carry on their shared history. The independent watch retailer will maintain its business and brand identity. Once the takeover transaction has been approved by the competition authorities, it will become a part of the Rolex group.
In September 2022, Audemars Piguet, a Swiss Haute Horlogerie manufacturer, formally opened its first AP House in Switzerland in the elegant Leuenhof neighborhood of Zurich. The beloved local landmark and cultural icon welcomed the brand's guests for an unforgettable experience.