The trade-in of luxury watches has increased over the last five years. Both the retail and the pre-owned markets have seen a surge in demand. In this article, we take you through the major highlights mentioned in luxury watches global market report of 2022.
How big is the global luxury watch market?
$43.71 billion, that’s how big the global luxury watch market will be in 2022. Although the market segment was hit due to the rise of Covid, it has regained momentum and shows a rising trend in demand.
Whether you are looking to buy luxury watches, it is important first to note the market potential before deciding to invest in them.
Highlights from the luxury watch global market report 2022
The luxury watches global market report covers several different components as part of it. In this article, we have covered all the essentials regarding the luxury watch market. To help make things easier, we divided the information into six major categories.
- Leading countries in the world
- Projected growth by 2027
- Online and offline sales bifurcation
- Types of luxury watches
- End user classification
- Top watch brands and their market share
Leading countries in the world
Across the globe, the luxury watch market has seen substantial growth in five major nations. In the table mentioned below, we have listed out the countries and their annual revenue generated through luxury watches. The table order below is mentioned in ascending order of revenue:
|Top countries||Estimated luxury watch revenue in 2022 (In US $ Million)|
|Germany||$1,939 million ($1.93 billion)|
|Singapore||$2,144 million ($2.14 billion)|
|Japan||$2,802 million ($2.80 billion)|
|United States||$5,263 million ($5.26 billion)|
|China||$10,360 million ($10.36 billion)|
The above five nations are among the top countries that have seen exponential growth in the luxury watch segment. Apart from these countries, here’s a list of other nations that have witnessed growth over the last year:
- France – $1,795 million ($1.79 billion)
- United Kingdom – $1,682 million ($1.68 billion)
- Italy – $1,473 million ($1.47 billion)
- Switzerland – $1,390 million ($1.39 billion)
- United Arab Emirates – $1,330 million ($1.33 billion)
- Spain – $745 million
- Saudi Arabia – $268 million
Projected growth by 2027
Based on the current trajectory, it seems like there is no stopping for the luxury watch market. The market is expected to attain a CAGR (compound annual growth rate) of 4.5% by the end of 2027. If the trend continues to grow at this rate, the luxury watch market can reach an estimated $53.38 billion in 2027.
Online and offline sales bifurcation
With the growth of eCommerce platforms and the migration of business from brick-and-mortar to digital mediums, the sales of luxury watches online have increased. In 2021, offline to online sales were 72% to 28 %, respectively.
In 2022, that percentage has seen a slight bump i.e, 28.6% online to 71.4% offline. This clearly shows that people trust online sources and are comfortable making their high-end purchases through authorized online sellers.
Types of luxury watches
Mechanical watches were observed to hold a higher market share percentage at 75% compared to electronic watches. Although, new and innovative technology is being introduced in the watch segment with digital watches. Classic analog timepieces produced by luxury watchmakers fetch a greater market share.
End user classification
The classification of luxury watch buyers between female and male customers shows the proportion of large buyers. It has been noted that the female segment takes up the majority of the share when it comes to end-user classification.
$23,740 million is the market share of luxury watches bought by women. Per a survey, American women are known to be more knowledgeable and passionate about luxury watches and their mechanisms.
The types of watches purchased by women have also been observed. Women most commonly purchase watches studded with precious stones and diamonds.
Many renowned watchmakers are known for offering luxury watches as part of their product lineup. Perhaps, not every brand is a dedicated luxury watchmaker. Therefore, the report classifies such watch brands in the others category.
Let’s take a look at which leading brands take up the market share and by how much:
- Rolex – 25% market share
- Swatch Group – 25% market share
- Richemont – 10% market share
- Fossil Group – 5% market share
- Patek Philippe – 5% market
- Other watch brands – 30% market share
The culmination of the report – What do we think
Luxury watches continue to grow as a great source of investment. It has proven to be an effective and lucrative asset that people continue to invest in. Perhaps, some of the most recent observations state that the transformation from offline purchasing to online shopping is seeing an upward trend. More and more people are comfortable buying expensive watches online through trusted dealers and other authentic sellers.
The growth in the luxury watch retail segment has also directly influenced sales in the pre-owned market. Many new enthusiasts are learning more about luxury watches and their long-term investment benefits. Therefore, the pre-owned market for luxury watches is also noticing growth.
Overall, we recommend you go ahead with your decision to buy luxury watches if you have thought about it. Whether you are buying one for aesthetic purposes or investment, these watches will prove to be great products.