Market Research Report
Watch Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
|Watch Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 181 Pages
Delivery time: 2-3 business days
The watch market was valued at USD 61.85 billion in 2020, registering a CAGR of 4.10% during the forecast period (2021-2026).
Considering the COVID-19 pandemic, smartwatches companies have upgraded and launched products to detect the early symptoms of COVID-19 in individuals. For instance, in September 2020, Apple Inc. launched the Apple Watch Series 6, which incorporates features such as heart rate and blood oxygen sensors, as it detects early signs of respiratory conditions like influenza and COVID-19.
The disposability and affordability of value watch brands make them a popular fashion choice among consumers across the world. The lower-priced and mid-priced watches are increasingly gaining market traction due to the increasing demand for value-for-product watches and accessories among women.
The demand for smartwatches in the digital watch segment is getting stronger among young consumers, as they are more aware of smartphone technology. Popular brands, like Apple Inc. and Fossil Group Inc., are increasingly launching new products with new product innovation year on year so as to sustain in this growing market.
Brands, like Casio and Timex, are continuously investing in R&D for product innovations to blend some of the features of smartwatches with the long-lasting battery life of digital watches while offering the product in attractive design and affordable prices. However, the growth of the watch market has been affected by the presence of these counterfeit products, and customers may not be able to differentiate such products, thereby affecting the revenue stream for the organized players.
The increase in health awareness among the consumer across the world has resulted in increased consumer spending on health monitoring gadgets. This has further led to the increased sales of smartwatches. It has a wide range of monitoring functionalities that enable users to control music, notifications, walk tracks, heartbeat rates, and other functions, which increases the growth of the market. For instance, Samsung introduced a new smartwatch that claimed to monitor blood pressure and keep better track of the person's physical health every day. Samsung is looking at measuring the variation in blood pressure and not absolute blood pressure, which will aware the person regarding his/her blood pressure activity.
The increasing number of the working population is more likely to embrace sports and fitness as a part of recreational activity. Also, endurance sports have also paved a strong ground for the enthusiast to grab the varieties in the sports wearable segment, thereby escalating the smartwatch sales and subsequently the sales of watches in the global market.
China is one of the most competitive markets in the world, as it offers huge potential for manufacturers of luxury watches to acquire and compete. Rolex, Omega, Patek Philippe, Cartier, Channel, Longines, Tissot, Rado, Blancpain, and Piaget are some of the prominent luxury watch manufacturers. The estimates released by the Federation of the Swiss Watch Industry in January 2019 showed that China was the third-biggest export watch market, witnessing a growth of 11.7 % from 2016. Similarly, exports of Japanese watches increased in units by 5%, amounting to 58 million units in 2019. It increased in value by 18%, amounting to CNY 163.7 billion, in relation to the previous year.
Moreover, the Indian watch market was initially targeted solely at men. However, with the increasing rate of female participation in the workforce, the demand for female and unisex watches increased. Sensing the demand and the growing market, in 2017, the Switzerland-based watch manufacturer, Frederique Constant, introduced the newest addition to the most feminine collection of the brand, Art Deco, in India.
The watch market is highly competitive, with the presence of both global and domestic players. Some of the major players in the market include Fossil Group Inc., Citizen Watch Co. Ltd, Titan Company Limited, and Apple Inc. Major players are focusing on leveraging the opportunities posed by innovation in the market to expand their product portfolios so that they can cater to the requirements in various product segments, especially within the category of integrated analog and smartwatches.
These players are now focusing on social media platforms and online distribution channels for the online marketing and branding of their products to capture the maximum attention of the customers.