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Global Watches and Clocks Market to Reach $70.7 Billion by 2026

Watches and clocks are mechanical or electronic timekeeping pieces, which are utilized to indicate or measure time. Demand in the market is driven by the advent of newer technologies, digital advancements, changing economic status of developed and developing countries, shift in power from brands to consumers, from baby boomers to millennials, from western world to the eastern countries, and from traditional print and television media to social media. The growing trend of gifting watches, personally or for businesses, adds to the demand for watches and clocks. With prices of smart devices falling constantly, sales of smartwatches have gathered pace. Another major trend is the rising demand for sports watches with in-built GPS that allows wearers to keep track of performance parameters such as distance covered, calories burnt and time taken. The growing popularity of Internet retailing also presents substantial opportunities. Confronting stiff challenge from smartwatches, traditional watches are looking to sustain sales by emphasizing on function, movement design, place of manufacture, craftsmanship, brand value and credibility, and price.

Amid the COVID-19 crisis, the global market for Watches and Clocks estimated at US$60.4 Billion in the year 2022, is projected to reach a revised size of US$70.7 Billion by 2026, growing at a CAGR of 2.8% over the analysis period. Quartz, one of the segments analyzed in the report, is projected to record 2.3% CAGR and reach US$48.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Mechanical segment is readjusted to a revised 3.9% CAGR for the next 7-year period.

The U.S. Market is Estimated at $12.1 Billion in 2022, While China is Forecast to Reach $7.5 Billion by 2026

The Watches and Clocks market in the U.S. is estimated at US$12.1 Billion in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.5 Billion by the year 2026 trailing a CAGR of 4% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 1.9% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.4% CAGR. The penetration of premium branded watches in the US, Canada, Japan and Europe is high partly because developed markets are backed by favorable socio-cultural factors and greater discretionary spending power among men and women. The launch of affordable luxury watches and affordable smartwatches in particular are expected to benefit sales in the US. Middle class population in India and China, with their rising disposable incomes, have supported sales in the mid-priced products category.

Luxury Watches Embrace Digital and Dual Display Designs

Appearance of a luxury watch is accorded as much importance as the fine movement mechanism in its interior. Watch makers are leaving no stone unturned in implementing several new designing nuances for creating exclusive pieces of art for their customers, and displays is one area which is receiving maximum attention. Making displays of their new watch offerings spectacular is what every manufacturer in the Swiss luxury watch making industry is continuously striving for. A typical watch display has the hours and minutes hand and sometimes the seconds hand. However, there are in present scenario several models which completely eliminate the need for these hands, with digital displays. Some watch companies have also opted for analog and dual digital displays in few of their models.

Another notable trend in the luxury watch making industry is some of the traditional watch makers collaborating with software companies to develop luxury smart watches. Fossil for instance partnered with Intel for developing a smart watch line. A similar initiative was also announced by Swatch Group famous for its Breguet and Omega brands. Thus, the growing prominence of smart watches is paving way for new business models in the traditional watch making industry. Going forward, such collaborations of watchmakers and software companies for developing hardware and software required for `finer` as well as `smarter` watches is expected to gain more traction. Such collaborations are expected to emphasize on both emotional as well as functional characteristics of a product. For the present however, the major threat posed by smart watches is for the entry level category of luxury watches.