Watches Market Analysis Report By Product, By Distribution Channel, By Operation And Segment Forecasts From 2019 To 2025

Industry Insights

The global watches market size was worth USD 50.1 billion, in 2018. Changing fashion trends coupled with increased spending by the working population is attributing to the market growth. Moreover, tech giants, such as Xiaomi and Apple Inc. have launched new products in fitness and smartwatches, which, in turn, is predicted to drive the watches market during the forecast period.

The increase in purchasing power of the middle-class in countries like India, Brazil, and China will allow them to choose different varieties of watches according to their needs. Moreover, watches are popular as gift items. This factor is estimated to supplement the market growth.

There is an increased demand for such watches due to the onset of new advanced products by prominent companies such as Fitbit Inc., Apple, and Samsung. The availability of multiple variants in smartwatches according to different age divisions has increased its penetration in different geographical regions. Further, fitness watches are gaining popularity because of the increasing demand for such watches by fitness enthusiasts and sportspersons. Customers are more attracted to cost-effective fitness and smartwatches with higher battery life. They are becoming aware of the various benefits provided by these products through the attractive features and fashionable accessories.

Product Insights

Smartwatch is predicted to grow at a CAGR of 12.8% during the forecast period, 2019 to 2025. Features including distance tracker, GPS, health tracker, Bluetooth connectivity for smartwatches, and smartphones are expected to attract potential buyers. Moreover, the compatibility of these products with various operating systems such as Android and iOS has resulted in the rise in the popularity of these products among millennials. However, the potential fallout of the product is the limited life of the battery that can also be viewed as a threat. This factor is estimated to hinder the market growth over the forecast period.

Fitness watches are expected to grow at a CAGR of 13.7% during forecast years. One of the main reasons for this growth includes features that help to access the body activities such as cycling, heart rate, swimming laps, daily steps, and sleeping patterns that help in keeping a track of calories intake, heart rate, and the number of vital steps.

Operation Insights

The quartz category accounted for the highest share of 70.8%, in 2018 owing to its higher utility in terms of inspecting the body activities such as the number of walking steps and heart rate. The increased awareness of healthy lifestyles among the working-class adult population is expected to drive the demand for quartz watches.

The need for regular cleaning and maintenance makes mechanical watches less precise in comparison to newly introduced electronic quartz watches. Moreover, high-end luxury watches usually have in-built mechanical applications and are purchased for aesthetic purposes by customers. The expected CAGR for these products is projected at 13.7% for the period 2019 to 2025.

Distribution Channel Insight

The revenue generated by hypermarkets/supermarkets was USD 21.4 billion for the year 2018. This segment is estimated to dominate the market over the forecast period owing to the easy availability of a wide range of products. Additionally, developing economies such as India and China have observed an increase in the number of supermarkets due to urbanization and rising consumers’ purchasing power.

The online platform is expected to grow with a CAGR of 14.0% for the period 2019 to 2025. Growing e-commerce platforms coupled with multi-channel retailing are driving the sales through this sales channel. Further, online platforms are getting popular among millennials as they offer easy purchasing options, doorstep delivery, and easy return policies.

Regional Insights

North America dominated the sales in watch markets with over 30.0% share of global revenue, in 2018. The presence of leading brands such as Fossil, Hager, and Apple are driving the region’s growth. Moreover, the high obesity ratio in the US has led to an increased awareness of fitness among consumers. This factor is likely to encourage people to spend more on gadgets, such as health watches.

Asia Pacific is estimated to exhibit the highest CAGR over the forecast period. The region is projected to grow with a CAGR of 13.9% over the forecast years. The demand for watches is set to upscale over the next few years due to changing lifestyles, urbanization, and an increase in disposable income in developing countries including India and China. Europe, on the other hand, is predicted to expand at a CAGR of 13.9% from 2019 to 2025 and hold a notable share with new lines of the product introduced by companies like Omega, Tag Heuer, and Rolex.

Watches Market Share Insights

Rolex SA; Omega SA; Oakley, Inc.; Patek Philippe SA; Titan Company Limited, and Apple Inc. are some of the major manufacturers. In the smartwatches segment, Apple holds a dominant share of 75.0%. CASIO has launched some of the new products including EDIFICE ECB900DB-1A and G-Shock GWF 1035F-1. Solar-powered Edifice is 100m water-resistant, and it is compatible with Bluetooth. Apple has launched one of its most anticipated products, which is, Apple Watch 4, in the smartwatch segment. It has a larger screen, heart-rate monitor, new speakers, and motion-tracking software with 50pc louder. Thus, the introduction of new products is likely to fuel market growth and drive competition.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global watches market report based on product, distribution channel, operation, and region:

• Product Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Smart
    • Fitness
    • Luxury

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Hyper/Super Market
    • Convenience Stores
    • Online

• Operation Outlook (Revenue, USD Billion, 2015 - 2025)
    • Quartz
    • Mechanical

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa