The global watch market is expected to grow significantly over the next few years, driven by factors such as increasing demand for luxury branded watches and new entrants with sportier and health-aware designs. Here is a detailed analysis of the global watch market from Renub Research:
Executive Summary
Global Watch Market share was worth US$ 73.82 Billion in 2023. Renub Research predicts a 5.03% CAGR from 2024 to 2032. The market is expected to be worth US$ 114.81 Billion by 2032. The market is expected to be driven by the rising demand for luxury branded watches and the entry of new players with innovative designs and features.
Market Overview
The global watch market is categorized into different segments based on watch type, end-user, and regional distribution. The market is dominated by quartz watches, which accounted for a significant share of the global market. The offline mode of distribution held the largest share of the global watch market.
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Competitive Landscape
The global watch market is highly competitive, with several major players vying for market share. The top five players in the market are Fossil Group Inc., Citizen Watch Co. Ltd, Titan Company Limited, Apple Inc., and Seiko Holdings Corporation. These companies have adopted various strategies such as mergers and acquisitions, joint ventures, and collaborations to expand their market presence.
Market Size and Forecast
The global watch market size was worth $73.82 billion in 2023 and is expected to reach $114.81 billion by 2032, with a compound annual growth rate (CAGR) of 5.03% from 2024 to 2032.
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Market Segmentation
The global watch market is segmented by watch type, end-user, and regional distribution. The market is dominated by quartz watches, which accounted for a significant share of the global market in 2022. The offline mode of distribution held the largest share of the global watch market in 2022.
Regional Analysis
The global watch market is analyzed by region, including North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. China emerged as the top revenue-generating market for luxury watches in 2022.
Key Factors Driving the Global Watch Market
The key factors driving the global watch market include:
1. Rising Demand for Luxury Branded Watches: The demand for luxury branded watches is increasing due to their high-quality craftsmanship, unique designs, and prestige associated with owning such watches.
2. New Entrants with Sportier and Health-Aware Designs: New entrants in the market are offering sportier and health-aware designs, which are attracting a wider audience and driving growth in the market.
3. Increasing Adoption of Smartwatches: The adoption of smartwatches is increasing due to their ability to track fitness and health metrics, receive notifications, and perform various other functions.
Challenges and Issues
The global watch market faces several challenges and issues, including:
1. Competition from Smartphones: The increasing use of smartphones has led to a decline in the demand for traditional watches.
2. High Production Costs: The high production costs of luxury watches can make them less affordable for many consumers.
3. Environmental Concerns: The production and disposal of watches can have negative environmental impacts, which are becoming increasingly important to consumers.
Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the global watch market. The pandemic led to a decline in demand for watches as consumers reduced their discretionary spending. However, the market is expected to recover as the pandemic subsides and consumer confidence returns.
Research Methodology
The research methodology used by Renub Research includes:
1. Identifying Key Variables: The research team identified key variables such as market size, growth drivers, and challenges to understand the global watch market.
2. Market Building: The team collated statistics on watches price over the years, penetration of marketplaces, and watch providers ratio to compute revenue generated for watches dealers.
3. Validating and Finalizing: The team validated statistics by conducting CATIs with industry experts and seeking operational and financial information from company representatives.
Analyst Recommendations
The analysts at Renub Research recommend that watch manufacturers focus on developing innovative designs and features that cater to the growing demand for luxury branded watches and smartwatches. Additionally, they suggest that manufacturers should prioritize sustainability and environmental concerns to appeal to environmentally conscious consumers.
Conclusion
The global watch market is expected to grow significantly over the next few years, driven by factors such as increasing demand for luxury branded watches and new entrants with sportier and health-aware designs. The market is expected to be dominated by quartz watches, with the offline mode of distribution holding the largest share. The top five players in the market are Fossil Group Inc., Titan Company Limited, LVMH Group, Apple Inc., Compagnie Financière Richemont S.A, The Swatch Group Ltd, Citizen Watch Co. Ltd., and Seiko Group Corporation.